Training is not always seen as a top priority, but it should be. Not only does ongoing training support better performance, but high-achieving workers want professional development opportunities and are seeking out employers that provide this.
In today’s blog, we’ll explore some additional reasons why workplace training is so important, and why it’s worth the investment.
Lifelong learning aids business agility
70% of CEOs say their organisation doesn’t have the skills to adapt to disruptive changes due to technology advances.
It’s no secret the world around us is changing at an ever-increasing rate. The only way everyone in an organisation can stay up to date with technological change is by engaging in ongoing training. Even the most experienced employees can benefit from revisiting best practice or picking up skills in new tools to do their job even better. It’s important to instil this as part of your workplace culture, so employees know they are welcome to request training opportunities, regardless of their experience level or tenure.
One way to ensure employee skills are kept up to date with organisational priorities is by tracking goals, and identifying skills gaps. By allowing all staff to set goals directly related to bigger picture objectives from above, employees always have direction on exactly what they need to do to contribute. What’s more, it’s then easy to identify skills gaps blocking goals from being completed, and training can then be selected to combat this. This process will help keep your business agile by ensuring everyone has the skills they need to fulfill company goals.
Training opportunities aid retention and talent acquisition
7 in 10 employees say professional development opportunities would affect their decision to stay at a company.
40% of employees who receive poor job training leave their roles in the first year.
Companies that offer professional development opportunities have 34% higher retention rates.
If you know the cost of employee turnover and talent acquisition in your business, you’ll know it can be costly. The worst part of turnover cost is that it’s largely avoidable, and while some level of attrition is always inevitable, most organisations should be aiming to reduce it as much as possible.
Multiple studies have found a correlation between retention and training opportunities, with the majority of workers claiming a lack of professional development opportunities would contribute to a decision to leave an organisation.
By engaging in continuous feedback and asking staff what training or development opportunities they would like to undertake, you can ensure staff know that the option is always on the table and they can request certain programs that they feel will add to their skill set.
Effective training improves profitability
Ineffective training can cost businesses up to $13.5 million, per 1000 employees per year.
Companies that invest in employee training enjoy 24% higher profit margins than those who don’t.
Training should not be seen as a cost but an investment. The cost of ineffective training is potentially huge, leaving staff ill-equipped to do their best work or even at risk of making crucial mistakes due to a lack of training. When organisations do make an effective investment in training, they can therefore expect much improved profitability.
By tracking your training in intelliHR, you can measure ROI and gather feedback on different programs to determine which are most worthwhile. Capturing this information will also make it easier to identify skills gaps, and also how those skills gaps have been best filled with other team’s members.
Once you have data on ROI generated by different training opportunities over time, it will be simple to determine a set quarterly or annual training budget for every staff member. Use your goal setting and strategic alignment processes to identify training opportunities for each of your team members. Having a set training budget for all employees normalises training and encourages everyone to take advantage of development opportunities within a set timeframe.
Training budgets aren’t just for big businesses and don’t have to cost the earth
Organisations with less than 20 employees are 23% less likely to participate in work-related training than those with 100 or more employees.
Almost 5 million Australians work for a small business and this number is growing, but unfortunately, businesses with less than 20 employees are 23% less likely to deliver work-related training than their bigger counterparts. Seeing the value of training, small business can’t afford to miss out. The good news is, training budgets don’t have to cost the Earth.
As mentioned, funds spent on effective training should be seen as an investment, as it pays for itself with the boost to productivity and subsequent profitability. But beyond this, even if a set training budget for every employee isn’t feasible, there are plenty of valuable online training courses or workshops that are offered for free or a very low cost. So get creative, rather than setting a monetary training budget, you could assign a set amount of hours each employee can spend on training each month.
Training opportunities are a key motivator to perform
74% of workers feel they aren’t achieving their full potential at work.
Employees with training opportunities are 15% more engaged.
87% of Millennials claim that professional development and career growth are very important to them.
Training not only adds to performance by enhancing workers’ skills, but also helps keep your people motivated and engaged at work. Helping your staff take their knowledge to the next level provides motivation to keep striving for better performance, building a culture of continuous improvement. Providing ongoing professional development also allows everyone to keep growing in their role, rather than feeling they need to get a new job in order to level up in their career.
Now that it’s clear the impact effective training can have on your organisation, what will you do differently to take advantage of it?