When budgets start to get tight and cut backs are made, training and development is sometimes one of the first things to go for many companies. Organizations usually reduce their budgets to the bare essentials and employee training is generally not a priority. So many organizations look at training as an expense rather than a true necessity. However, that thinking may actually be the exact opposite of what is best for employees and the organization as a whole.
Show me the money
I think it’s safe to say that most of you would agree that training and development can be a great opportunity for employees to learn important new skills and build on existing competencies. What you may not know though, is that statistics consistently show that employee training increases employee effectiveness and ultimately increases company success. According to a study conducted by the American Society of Training and development, there is a positive correlation between the amount of money and time spent on employee training and the profitability of a company. In fact, data suggests an investment in higher-level training of as little as 10% can yield an 8.6% increase in productivity… compared to just a 3.4% increase from investing the same amount in new equipment (Information from www.skillstrac.com). So what does that mean? Investing in employee training can actually impact your company’s bottom line!
Added Benefits
So, now we know…training and development can actually help your company make money through increased productivity of employees, but that’s not the only benefit you’ll receive. Studies show that training can also improve employee morale and happier employees are less likely to leave your company. Take a moment to consider this; in companies where training is conducted effectively, 12% of employees are considering leaving the company to find a new job. In companies who do not train or the training is not conducted well, 41% of employees are planning to leave (www.pinpointperformance.net). Here’s where it starts to really make sense, the average cost to replace an employee and train a new person on just the basics of a job are at least $17,000. The average cost of training? 2.5% of an employee’s salary.
Training and Development as an employee benefit?
Hopefully by now, you can see why training and development is important to your organization. The investment you make in your employees now can have a huge impact on your company’s financial success. But did you know that younger employees actually view training and development as a required benefit when they are looking for jobs? According to a survey conducted by Price Waterhouse Coopers, Millennials ranked training and development as the number one benefit they were looking for (out of 4,364 Millennials surveyed). Many noted that they wanted more than “just a job” and that they were looking for something that could offer them professional growth with an opportunity for ongoing learning (www.hirestrategy.com). So what does all this mean to your organization? It means that you should definitely be looking at your training and development strategy as a retention and recruitment tool. Statistics show you’ll have happier employees and a happier you (because you’ll have a happier bottom line of course).
Need help with training?
Contact me at jenniferlfisher@live.com for details on specific training I offer.
