Improved employee performance
– the employee who receives appropriate training is more able to perform in their job, and to perform it better with less supervision and re-work. Training also gives the employee a greater understanding of the responsibilities within their role, and this knowledge builds performance-boosting confidence. Confident employees are stronger leaders and strong leaders are one of a company’s competitive edges.
Improved employee satisfaction and morale
– A company’s investment in training proves that the company values its employees and that the company understands the link between employee success and a stronger bottom line. A company with a strong Contract Education partner program can help employees gain access to training they wouldn’t have otherwise known about or felt entitled to pursue. Employees who feel appreciated and challenged through training opportunities may feel more satisfaction toward their jobs and a satisfied workforce is likely to be more productive and longlived.
– Excellent, consistent training and development programs help employees find and strengthen performance weaknesses or gaps in knowledge and skills. Company-wise, this creates a more consistently skilled employee base. This consistency keeps employees growing and engaged and the consistency allows employees to help each other across job-titles and other silos as the company grows.
– A robust training and development program ensures that employees have a consistent experience and knowledge base. This creates consistency in process, product and productivity and therefore quality.
Increased productivity and adherence to quality standards
– Improved quality, when paired with increased productivity is the foundation of progress and profit. Employees who remain up-to-date with new technology often reach higher levels of both quantity and quality, thereby boosting profit.
Reduced employee turnover
– Training is key to confidence and a sense of forward momentum for employees. When a company invests in training employees, employees are more likely to feel valued. The employee knows the training enhances their success inside the company and keeps the employee’s skills current and marketable. Staff are retained and costs of employee turnover go down.
Reduction of errors and accidents
– Most workplace errors occur because employees lack adequate knowledge and skills required for doing a particular job at a level required to be both safe and productive. Continuous training and development gradually improves each employee’s ability to stay
productive and safe, thereby reducing costs.
Enriched talent pool and employee potential
– Creating a pool of cross-trained employees helps to bridge gaps when someone unexpectedly leaves the company, their department or their position. Cross-training also fosters team spirit, as employees appreciate the challenges and opportunities encountered by co-workers. Additionally, most companies overlook hidden talents of their employee pool. Training and development programs are one of the places that employees and the company itself can discover such wasted potential.
What Every Employer Should Know About the Positive Effects of Training Your Employees – And the Negative Effects if You Don’t
When you consider that 94% of employees would stay at a company longer if it invested in their career (2018 Workplace Learning Trends [LinkedIn Learning, 2018]), it’s no surprise to consider the benefits of training your employees and investing in their skills.
Check out the stats from “Why More Training?” (FPSA News, September 15, 2020):
- 94% of employees say they would stay at a company longer if it invested in their learning and development, according to LinkedIn Learning;
- 76% of your employees are looking for career growth opportunities and investments in training keeps them motivated and inspired to work harder and be better at their job;
- 40% of employees leave their job within the first year unless they receive training and education from their employer;
- 74% of employees feel they are not reaching their full potential unless they receive training from their employer; and,
- 87% of Millennials state that having access to professional development and education is very important to their decision of whether to stay or seek other employment elsewhere.
Does It Really Help my Bottom Line?
You betcha! When you take into account the increased productivity, retention and employee satisfaction as well as the reduced turnover and accidents, the savings really add up! “Companies that offer training have a 218% higher income per employee than companies without formalized training; and, they have a 24% higher profit margin” (“Why More Training?” [FPSA News, September 15, 2020]
A company spends 20% (on average) of an employee’s salary in turnover costs when they quit! Remember that happy employees are productive employees. Well-trained employees are more engaged and committed to their work, using less sick time and assuming more tasks. Consider one example – IBM Corp. reports that they receive $26 ROI on every training dollar they spend. (“Employee Training Pays for Itself“, Portland Community College, June 20, 2016).
Here’s how the workforce will change in the coming decades: MIT report 2020
Check out this excerpt from this MIT study/article:
CNBC: For the people who are currently unemployed and considering a career change or soon to be entering the job market, how can they best prepare for these changes and make sure they remain hirable?
Elisabeth Reynolds: What we see changing in terms of demand for workers is a desire to have both some level of comfort with technology, whether that’s data analysis or working with tablets, along with social skills and having a real comfort with human interaction. Some research shows that the social side is actually even more important than the technical side.
Check out the whole 92-page report here!