Man leading training meeting whenit comes to the bottom line, the ROI of a robust training programbeats the cost savings of training cut-backs hands down. (Photo:Shutterstock)

|

Smart employers understand all too well the benefits associatedwith the training and development of company employees. In anutshell, strengthening employee skills reduces weak links,improves productivity, has a positive impact on innovation and isextremely influential in improving staff morale.

|

Not so smart employers focus on the cost associated withtraining and developing employees and can't see beyond that,perceiving it as a drain to the business, not a wiseinvestment.

|

All too often businesses don't make training and development apriority. But when it comes to the bottom line, the ROI of arobust training program beats the cost savingsof training cut-backs hands down.

|

Related: Amazon to invest $700 million in retraining itsworkforce

|

Let's take a look at how well-trained employees add value toyour business.

|

The customer experience – these guys are great, I'll buy fromthem again

Poorly trained staff don't make a good impression on yourcustomers. They can't answer queries, they aren't selling yourbrand, and they don't understand the company's mission or vision.Essentially, staff who aren't given adequate training can't make astellar impression on your customers.

|

On the other hand, employees who are well-trained understandeverything about your business. They can speak knowledgeably aboutyou and your products or services and represent your brand insideand outside of the workplace. They'll say great things about you toexisting and potential customers, and to friends and family.

|

Remarkable customer service is an essential componentof business success. You need trained employees to deliver this.Training also helps to align everyone working in your business, sothat the message you are sending to each and every customer is thesame. Consumers want a good experience and they valueconsistency.

|

Staff retention – hey this company is pretty good, think I'llstick around

When staff feel valued and invested in, they are less likely tojump ship and seek employment elsewhere. Training and developmentare top perks new recruits look for in an employer.

|

Mike Knivett, MD at Artemis Marketing, says, "Not investing in employeetraining and development is like shooting yourself in the foot. Ifyou support your employees to grow and show you care about theirdevelopment, they in turn work smarter and harder for you.

|

"Staff who are excited about their future in our business arehighly engaged and that helps enormously in the retention oftalent. We've set up personal development plans for all staff, werun lunchtime learning sessions and regular Learning at Workprograms, and we have a robust mentoring scheme. Needless to say,our staff retention rates are great."

|

Innovation and process improvement – I didn't realize my teamhad so many great ideas

Any business looking to gain competitive advantage, flourish andgrow, needs to innovate. But, innovation in business doesn't justhappen. It requires a learning culture. To keep your company ahead ofthe game, you need to embrace change at lightening speed, learn newskills, sharpen old skills, keep up with trends, and assimilate newknowledge.

|

Learning isn't just about job training. It's about mindset. Forlearning and development to be highly effective there needs to be ashift in an organisation's culture to a growth mindset.

|

A learning culture empowers employees to contribute ideas andrefine processes. Deloitte reports that high performing learningorganisations are 92 percent more likely to innovate and 46 percentmore likely to be first to market.

|

Learning cultures are only successful when there istransparency, openness and trust. Employees need to feel that it'sOK to make mistakes and learn from them and feel psychologicallysafe to speak up with ideas.

|

Employee engagement and productivity – I'm fired up and want todo my best every day

In the previously mentioned report, Deloitte found thatcompanies who prioritize learning experience 37 percent higherproductivity. In an article on Human Capital Trends, Deloitte highlight,"Learning opportunities are among the largest drivers of employeeengagement and strong workplace culture—they are part of the entireemployee value proposition, not merely a way to build skills."

|

On the whole, employees value collaboration and want to domeaningful work. They value learning above material rewards.Learning enhances performance and inspires people.

|

Analysis of three million employee surveys found careerdevelopment to be the second biggest driver of employee engagement,not through occasional training and promotions, but through dailylearning and networking. There is little doubt that learning anddevelopment impacts employee engagement.

|

Reputation – our staff and customers love us

A strong and successful training and development strategycontributes hugely to your brand as a business and as an employer.Your reputation is important for attracting new talent andcustomers. A forward-thinking training and development program is amajor draw for ambitious people.

|

How you treat and invest in your staff also impresses customers.Consumers are getting much more savvy about corporate behavior.There's a growing trend for consumers to make ethical buying decisions, including howcompanies treat their staff.

|

Training and development for employees isn't just important, itis a critical lever for improving the bottom line.

|

Dakota Murphey has a wealth of experiencein business management, with over 10 years of experience she'sworked on a number of successful campaigns. She now enjoys sharing herknowledge through her writing and connecting with like-mindedprofessionals.


Read more: 

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.