Employee training and development programs provide the perfect opportunity to develop the knowledge base in your organization. And most importantly, great learning experiences make for a happier workforce. In this article, we take a dive into why employee training is important, and how you can provide knowledge and skills in a cost effective way.
5 reasons why employee training is important
Most employers wouldn’t take on an under-skilled worker, yet many are reluctant to invest in ongoing job training for the skilled workers that they have. As workplace technologies and processes evolve, this lack of effective training programs leaves once skilled workers lagging behind.
How can an organization compete with a workforce weaker than its competitors? The short answer is that it’s somewhere between difficult and impossible!
Tackling learning and development the right way can help you meet business goals, improve employee satisfaction and save time and money. Find out all you need to know to develop bullet proof employee training in this Ultimate Guide to Employee Training.
Let’s move onto the five benefits of employee training and why you should invest in it.
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).
With that in mind, companies that provide industry standard training will have more engaged employees, and therefore, are more likely to retain employees. It costs money to replace staff, so it simply makes sense to train and develop current staff and improve employee retention.
2. Trained employees are more efficient
Training can be used to drastically improve productivity and boost employee performance. When your employees are able to complete tasks more efficiently, 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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It’s clear that an investment in employee training is vital for any organization looking to succeed.
According to a Deloitte report on accelerating workplace change, training budgets increasing year on year. 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.”