Why bother training?
Did you know that the profitability of your company is directly related to the quantity and quality of training provided for your employees?
Training your staff is good for your business
Regardless of the size or type of business, training can have a measurable impact on performance, staff morale and profit. Higher staff productivity increases business output and can increase market share or expand it by improving products, services and reputations. Successful training is focused on supporting business objectives.
Research shows that productivity increases while training takes place. Employees who receive formal training can be 230% more productive than untrained colleagues who are working in the same role. (Source: Smith A., 2001, Return on Investment in Training: Research Readings, NCVER)
Why bother training your employees?
A number of organisations and managers still subscribe to the “yes but if I train them they will leave or want more money” syndrome. BUT what happens if you don’t train them and they stay!!!
Learning is the development of knowledge, skills and attitude. Training is required for the following:
- Triggers i.e. technical change; product development or increased competition
- To fill skills gaps
- To learn new skills
- To update skills
- To remind us of existing rarely used skills
- You don’t know what you don’t know!
Benefits of training
Training your employees, keeping them motivated and up-to-date with industry trends and new technologies is essential to achieving that competitiveness. Staff benefit too by learning new skills and becoming a valued asset within the organisation. Training brings direct benefits to business and can be calculated as a return on investment.
A good company is one that retrains rather than churns!
Training leads to Improved Quality and Productivity
Most businesses provide on-the-job training, particularly during induction. Ongoing training almost always shows a positive return on investment.
Training that meets both staff and employer needs can increase the quality and flexibility of a business’s services through:
- better accuracy and efficiency
- good work practices – improved quality/standards/safety
- better customer service
- increased productivity
- greater flexibility and responsiveness to change
- less waste – time/materials
- reduced maintenance and repair costs
Training leads to Motivated Employees
A positive company attitude towards learning fosters a culture of continuous improvement. ‘Learning companies’ are recognised as being more competitive and efficient.
Employees who are selected for training feel that their contribution is valued (due to your investment in them) and consequently have a more positive attitude towards work and are more committed.
In short it increases employee Credibility, Motivation, Attitude, Satisfaction, Self-esteem and Morale. This greater commitment improves:
- staff loyalty / retention / absenteeism
- progression planning
- promotion and recruitment
- customer satisfaction
Increased staff retention
Training employees increases staff retention. Investment in training shows that employers recognise and value employee’s contributions, which in turn fosters loyalty.
There is also a significant cost saving, as the loss of one competent person can be the equivalent of one year’s pay and benefits.
In some companies, comprehensive training programs have reduced staff turnover by 70%.
Knock-on Effects of Training
The benefits of training in one area can flow through to all levels of an organisation. Over time, training can boost your bottom line and reduce costs by decreasing:
- wasted time and materials
- recruitment costs – agency fees, advertising etc. is expensive and time
- recruitment costs through the internal promotion of skilled staff
Businesses must continually change their work practices and infrastructure to stay competitive. Training employees to manage the implementation of new technology, work practices and business strategies can also act as a benchmark for future recruitment and quality assurance practices.
Furthermore, as well as impacting on business profit margins, training can improve:
- staff morale and satisfaction
- ‘soft skills’ such as inter-staff communication and leadership
- time management
- customer satisfaction