Providing comprehensive training solutions for your business is a major investment. Training initiatives are often expensive up front, and unless employee learning is created and implemented correctly, they can also be a waste of time and money on all sides.
But the stakes are high. With some surveys reporting that 40% of employees who receive poor training leave their positions within the first year and with the high cost associated with turnover, it’s far riskier not to invest in quality training.
If those risks aren’t enough to convince you, take a moment to consider the benefits. Below are five ways in which investing in employee training can benefit your business and take it above and beyond.
Effective training boosts your future bottom line
The ROI that comes from employee onboarding and development can be hard to capture definitively. This is in part because of the “soft” skills where many training endeavors focus, and in part because conducting control studies in addition to implementing the training itself can be expensive.
Even so, current research has plenty of eye-opening statistics about the value of investing in learning and development. According to an HR Magazine report, companies investing more than $1500 per employee every year show on average 24% higher profit margins than companies with a lower training budget. While the initial cost might be steep, training is an investment that can be well worth the cost.
Employee development drives engagement and satisfaction
Employees who engage less in the work they do tend to be unhappy and unproductive. They also have a higher turnover rate and higher level of absenteeism, all of which cost your business both time and money. With a nation-wide trend in low employee engagement, it’s more critical than ever to create a working environment that leaves your employees satisfied, invested, and passionate about what they do.
There are several ways in which training can drive employee engagement.
- Learning new skills presents a challenge to workers, catching their interest and keeping them from getting stuck in their routines.
- Improving skills they already use helps employees be more productive and satisfied with the work they do.
- The opportunity to cross-train can build coworker relationships and allow employees to increase the scope of their contribution to the workplace.
Comprehensive training attracts great talent—and keeps it around
Talent recruiting presents an obstacle for many businesses out there—75% report that they struggle to attract and recruit the people they need. The workforce today values the opportunity to learn new skills and expand on their potential. When faced with choosing from similar job offers with similar paygrades, the presence of a solid learning and development program can be what seals the deal.
Some employers may worry that it may be a waste of time and money to commit to a training program when they are experiencing a high turnover rate. A common misconception is that training will likely increase turnover due to employees using their newfound skills to seek out other employment.
But contrary to this belief, training is a valuable tool in keeping your talent around. Showing your employees that you are investing in their development and future strengthens your relationship and gives them reason to engage more fully.
The right training ensures successful succession
Consider the costs to your business that arise when you hire externally for a new supervisor, manager, or executive position compared to hiring internally and bringing in a candidate who is already familiar with the workplace, your policies, and the tasks at hand.
Comprehensive training helps you build a pool of potential candidates for succession. The benefits of promoting rather than external hiring are clear—when positions are filled through promotion, performance is significantly better. Through building new relevant skills and cross-training, employees are prepared to fill gaps.
Ongoing training and development keeps your business future-facing
Is your business ready for the future? As technology, necessary skill-sets, and the marketplace change, you need to be ready to tackle those changes. Ongoing training for your employees keeps them up to date with your own policies, trends, and skills that will be useful for what the future holds.
Beyond just practical preparedness, a business that makes an effort to be future-facing shows its employees determination to help them learn, grow, and succeed.
How is your business future-facing? How can you ensure that your business takes advantage of the benefits that employee training can hold? By finding a training solution that works for you and your employees, you can reap the rewards and prepare your business for what’s to come.