Why employee training is important (5 reasons)

employee training

Most employers wouldn’t take on an under-skilled worker, yet many are reluctant to invest in ongoing training for the skilled workers that they have. As workplace technologies and processes evolve, this lack of ongoing training leaves once skilled workers lagging behind.

Related: Learn how to implement an effective employee training program

How can a business compete with a weaker workforce than its competitors? The short answer is that it’s somewhere between difficult and impossible!

Here are five reasons why you should invest in employee training:

1. It’s expensive to lose employees

Hiring new employees is never cheap. A recent survey cited by the go2HR Society indicates that 40 percent of employees leave their positions within the first year due to poor training opportunities. Furthermore, the Centre for American Progress reports that replacing an employee can cost 20 percent of the annual salary for employees who make between $30,000 and $50,000 (and up to 213 percent of the annual salary for highly trained executives).

Therefore, if staff who receive training are more likely to remain employees and it costs money to replace staff, it simply makes sense to train and develop current employees.

2. Trained employees are more efficient

When your employees are able to complete tasks more quickly because they know exactly what to do using the most effective methods, there are two immediate benefits to your business:

  • They complete more tasks in a given period of time, maximizing your return on investment (i.e., the hourly wage you pay employees).
  • Customer satisfaction is likely to be higher when your services are delivered in a timely manner.

3. Trained employees have higher production standards

Of course, getting work done quickly loses its impact if it isn’t done properly.

Employees who are well trained are more likely to produce higher-quality output the first time around, thereby minimizing mistakes. This creates less wasted time in rework and customers delighted with quality, reliable goods and services.

4. Trained employees will retain and grow your customer base

Some of the points we’ve already seen describe how training can directly impact your customers’ satisfaction.

And this is very important because customers leaving you is bad. It’s generally accepted that it’s less expensive to maintain existing customers than it is to win new ones.

Losing a customer is a double loss; you’ll lose ongoing revenue from that customer, and it’s unlikely that they’ll be directing potential, new customers to you.

The opposite is also true. A delighted customer can give you a double win! Not only are they liable to become a return customer, but they are also more likely to refer new customers to you.

So, having well-trained staff that results in satisfied customers can save you money, generate revenue, and grow your customer base.

5. Training doesn’t have to be expensive

Training’s 2014 Training Industry Report shows that 28.5 percent of training hours were delivered via online or computer based technologies (i.e., no instructor), and 29.1 percent of training hours were delivered via blended learning methods.

Modern elearning authoring tools, like Elucidat, enable organizations to create quality elearning and online support aids using in-house subject matter experts without the need for expensive tech support.

Leveraging your in-house expertise to create online training elements, face-to-face up-skilling sessions, or even informal Lunch ‘n Learn sessions (i.e., employees bring and eat their lunch while an in-house expert shares some wisdom) are great ways to introduce learning into your organization at minimal cost.

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In conclusion

According to a Deloitte report on accelerating workplace change, training budgets increased by 13 percent between 2010 and 2013. It’s not unreasonable to expect this general trend to continue as the pace of technological change increases and the battle to win the customer dollar becomes more competitive.

If you accept that a better-trained workforce is likely to be more profitable than a less well-trained one, then doesn’t it make sense to be a business that invests in training rather than one that doesn’t?

As the saying goes, “If you think training is expensive, try ignorance.”


Employee training is important – and the tools at your disposal, such as personalized learning, are more sophisticated than ever. To learn more, get your free copy of our guide to creating and delivering personalized learning:

Download your free guide to personalized learning

Steve Penfold

Steve Penfold

Steve Penfold is Customer Success Director at Elucidat. He helps large companies and training providers speed up and simplify their elearning authorin
Steve Penfold
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