Training is not just for the first week. As companies recognize shorter and shorter employee tenures, many organizations seek ways to keep the best employees and allow them to succeed strategically. But what can your company do to ensure the best employees understand their value and are allowed room for growth?
Why do you need to train effectively? The training program has always been a great option to build a diversified employee base, with team members learning the ropes and company mores. But many organizations throw the training program to the curb after they feel new employees have become well-acclimated to the organization. But this notion couldn’t be farther from the truth. Companies need to develop a consistent training program to allow employee growth. But Why? Here are five of the top reasons companies need to adopt and implement a constant training program.
When people know they’ve been equipped to do their jobs properly, this boosts their spirits and reassures them they can achieve levels of competency and productivity they haven’t realized in the past.
This helps to increase employee retention and with confident employees comes glowing results, recommendations, and recruitment. Check out our guide to acquiring and retaining talent for more details.
When employees understands why their work matters and how to do it, they have a greater likelihood of actually hitting the mark or going above and beyond. Instructor-led classes are still popular, as well as webinars and online learning. When the Montreal Transit System implemented an immersive e-Learning system, employee performance increased 32 percent, and training time decreased by 50 percent.
Well-trained employees don’t make as many errors (and therefore, don’t have to waste time and money fixing them), and they require less direct supervision. Furthermore, they spend less time on problem solving since they already know what to do. Consistent training also decreases employee turnover — a big drain on corporate costs.
Think of it. You want to keep your employees happy. Increased turnover results in decreased trust, leading to even more employee turnover—A never-ending cycle of loss. We also welcome you to see the underlying causes behind high employee turnover from one of our recent articles: 6 Reasons your Employee Turnover is High.
While money saved is equivalent to money earned, directly fattening the bottom line makes more people sit up and take notice. A few years ago, Nations Hotel Company invested heavily in coaching, arguably a form of one-on-one training — and saw an ROI of 221 percent. The Cheesecake Factory restaurant chain, which invests about $2,000 a year in training per employee, enjoys sales of $1,000 per square foot — twice the national average for their industry (they also have a much higher employee retention rate).
It doesn’t take much for this factor to boost ROI. According to the 2001 Global Training and Certification Study by testing firms CompTIA and Prometric, as little as a 2 percent increase in productivity can result in a 100 percent increase in training ROI. Motorola has found that every dollar invested on training can yield as much as a 30 percent gain in productivity within three years, which has helped them cut costs by $3 billion and increase profits by 47 percent. Check out 7 Tips for developing Strategic Leaders for more information.
As your company continues its venture to meet strategic HR and sales goals, it is important to consider the value of training programs to build employee value, confidence, and company return on investment. You need a documented training program, a plan to develop leadership, and a strategy to commit to this plan.
The Overture Group knows how valuable it is for your company to combine retained leadership with the right talent to fill the gaps. Through our longstanding commitment to helping your company, we have grown to be a leader in our industry, and look to assist your company to find and develop the right talent. Please check out our whitepaper, Talent Acquisition: A Roadmap for Success, and contact us to learn how your company can be hiring on all cylinders.