As a business owner, you know that staff training is important for the professional development of your employees, and as such – the progress of your business.
Companies can offer many kinds of training and development opportunities for employees. From in-house, third-party training, or off-site training. Some examples of employee training include:
- Management training
- Sales training
- New employee training
- Mentoring programs
- Apprenticeships
In this blog post, we will cover other (lesser-known) business benefits of training and assessing your employees.
1. Improve productivity and performance
Productivity is essential for profitability. Learning how to use new technologies or tools and software can significantly cut the time it takes to perform everyday tasks.
This means that when you invest in employee training for your business, you are investing in its future success.
Efficient businesses are better able to compete in the marketplace as well as provide their customers with the best possible service.
Training helps employees gain the skills and knowledge needed to perform their jobs at a high level of quality. This can result in better products or services, improved customer satisfaction, and reduced defects or customer complaints.
Well-trained employees are more likely to think creatively and contribute innovative ideas to your business. Training can foster a culture of innovation and encourage employees to take initiative.
2. Improve employee retention
The average cost of replacing an employee ranges from about one-third to twice their annual salary, depending on the level and complexity of their position.
Employee turnover is highly disruptive and costly.
When employees see a clear path for advancement and feel that their skills are continuously improving, they are less likely to seek employment elsewhere. This can save your business recruitment and onboarding costs.
Most job seekers are aware that the world of work is changing fast, and they’re looking for roles where they can grow. Offering employee training is a straightforward and effective way to reduce turnover. According to LinkedIn Learning, 94% of employees say they would stay at a company longer if it invested in their development.
3. Stay compliant and mitigate risk
All businesses are subject to compliance with various laws and regulations. Failure to comply with these regulations can result in significant penalties, including fines and even jail time.
Training and assessment can help businesses stay compliant by providing employees with the knowledge they need to follow all applicable laws and regulations.
In addition, regular assessment can help businesses to identify potential areas of non-compliance before they become a problem.
4. Improve management
Ineffective leaders cost the global economy over $7 billion each year —according to Gallup.
It’s a massive financial drag.
There are great executive coaching programs that train managers to communicate effectively, develop their employees, think strategically, and react to challenges with flexibility can drastically increase both team performance and employee satisfaction.
5. Attract better talent
Providing opportunities for learning and development demonstrates that you value your employees’ growth and career advancement. This can boost morale, job satisfaction, and overall employee retention.
Making it known to the public is an excellent PR for your company making it easier to attract top Millennial talent.
Employee development and training is a great recruitment tool. This is because most talented people are hungry for professional development to remain competitive in the marketplace.
6. Build a competitive advantage
In a rapidly changing business environment, continuous training ensures that employees stay up-to-date with industry trends, new technologies, and best practices. This enables your business to adapt to market changes more effectively.
The quicker you can provide new products or services when the market demands them, the more competitive advantage you have.
When employees are up to date with the technology and teams possess the skills they need to succeed, they can take your business to the next level quicker.
7. Reduce reliance on contractors
Many organizations rely on contractors to handle projects when the necessary skills aren’t available in-house.
But the costs of bringing in contractors are much higher than those of staff members.
If you can fill skills gaps among your current employees maximize individual productivity, and reduce costs.
Summary
Employee training is an investment that yields significant returns by improving employee performance, increasing job satisfaction, reducing turnover, and positioning your business for long-term success in a competitive marketplace. It is a strategic tool that helps your workforce adapt, grow, and excel.
The benefits and value of training and development act like a domino effect: leaders feel competent and can efficiently influence employee performance.
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