Even in the best of times, some view employee training as a nice-to-have perk that’s a massive drain on company coffers. In an era of tight budgets, it can be even more tempting to think this way.
The truth? Implementing an employee training program is a long-term investment in
your best resource (people) that can positively impact your bottom line tenfold. From
reducing the cost of employee turnover to increasing productivity, here are just a
few of the many benefits of offering employee training and development programs.
Improve Employee Retention
Are you finding it difficult to keep your most valuable employees? You’re not alone. Employee turnover costs U.S. businesses $1 trillion every year, and replacement costs can be 150 percent of a worker’s annual salary or more. The good news: One of the easiest ways to bring costs down is through employee training.
According to an article by SHRM, employee training reduces turnover and absenteeism. In addition, a recent LinkedIn Learning report showed that 94 percent of employees would stay at a company longer if it invested in their career development.
While it may seem counterintuitive, equipping employees with new skills doesn’t send
them running to greener pastures. On the contrary, knowing that an employer is willing
to use the company’s resources to aid in their growth makes employees feel important
and drives company loyalty.
Attract Top Talent
Let’s face it: You are your reputation. And companies with a reputation for investing in their employees’ career development have a major competitive advantage when hiring.
Offering training, tuition reimbursement, continuing education, conference attendance,
and seminar participation can effectively attract employees who are looking to develop
and better themselves – particularly millennials, who tend to place a high value on
employee training opportunities. Including training within an employment contract
also establishes an employee’s sense of value, fostering loyalty and retention.
Create a Pipeline of Up-and-Coming Leaders
No one is more familiar with the day-to-day business operations at your company than
long-time employees. It’s one of the reasons many companies choose to promote from
within the organization. You can ensure that your company maintains a deep bench of
managerial talent by investing in a formal leadership development program. Whether you begin by grooming new hires or selecting and training current employees
with leadership potential, leadership development can help you prepare promotable
talent and meet future organizational goals.
Improve Workplace Engagement and Productivity
According to a recent report by Gallup, 85 percent of employees worldwide are not engaged or are actively disengaged in their jobs. Career development can help energize bored, going-through-the-motions employees by shaping a more efficient, competitive, and engaged workforce. Consider these stats:
- Workgroups that engaged in employee development saw sales increase and profits double compared to workgroups that didn’t engage at all.
- Companies that have actively interested and dedicated employees see 41 percent lower absenteeism rates and 17 percent higher productivity.
- A business with an engaged workforce will achieve a 59 percent lower staff turnover rate.
By increasing engagement, employee training can also help reduce some of the undesirable
habits of disenchanted employees, including negative attitudes, sloppy work, showing
up late, and more.
Remain Competitive in Your Industry
With a third of employees receiving no training to develop new skills, it’s clear
that managers aren’t doing enough to prepare employees for the future. Employee development and training is no longer an optional privilege reserved for
the C-suite – it’s essential for the growth of your business and the employees who
drive it. Innovations, trends, and technologies are constantly changing, and woe is
the company that fails to help employees upskill and reskill to meet critical new
demands. When you have robust employee training programs in place, your employees
will better adapt to changes, giving your organization a much-needed competitive advantage.
USF Employee Training Delivers Big ROI
Once you’ve made the decision to invest in employee training, USF’s Office of Corporate Training and Professional Education can help you provide affordable, high-impact programs in a range of areas, from human resources to process improvement and project management to technology. All courses are delivered in a live online format that’s ideal for busy working professionals. We even offer tailored corporate training programs that can help meet your company’s specific needs and train your associates on a global scale.