Many employees and organizations perceive the importance of training as an afterthought, a budget drain, or even a waste of time. In actuality, great training can make for smarter employees and an increase in sales. It can also decrease costly employee turnover.
On-the-job training has never been more important in today's ever-changing environment and is an essential part of keeping your company competitive.
So, why should organizations focus on employee training and development?
Training pays off in a variety of ways, from boosting employee performance to strengthening company culture. Training leads to improved productivity and increased revenue.
HR Magazine found that companies investing $1,500 or more per employee in a year on training averaged 24 percent higher profit than companies investing in less training.
What are the benefits of training and development?
The importance of training offers many benefits for companies of all sizes and industries. Let’s take a look at some of the major ones.
No matter what industry you are in, times change. Maybe there are advancements in technology or changes in product offerings. No matter what the changes are, you don’t want your company to be left behind the competition. Great training can help keep employees current.
Sharpen employee skill sets:
Every employee naturally has strengths and weaknesses. Even employees who are in the same field or department. Ongoing training is key to building each employee’s skill set. This will not only improve everyone’s job performance but will build confidence.
We have touched on this a little bit, but employees who are constantly learning are more likely to stay as employees. Turnover is costly. According to The Society for Human Resource Management, the average cost-per-hire is $4,129, while the average time it takes to fill a given position is 42 days. That is a lot of money and time wasted! Instead, give current employees several chances to increase their skillset and invest in their development.
Promote from within
HR departments are already overwhelmed. The less time and money they need to recruit management-level employees the better. A great training and development program increases employee learning as they grow at the company. That way when a new position opens up at a higher level, promotion can be given from within. Not only does this save the company money, but will create happy and engaged employees.
HR recruitment tool
When a company is looking for new great talent, they want the best. They also want a stellar prospect to choose them over the competition. One tool in recruitment is a great training and development program. Showing potential employees that they can sharpen existing skills and also take classes in areas they want to improve in, is a great employee perk.