Training is not an option anymore. It's an absolutely vital part of a company's current and long-term growth strategy.
Rewards and recognition are powerful motivators, but it’s a lesser-known fact that employee development is in high-demand as a motivator. Training and development efforts are seen by employees as an investment in them. As a result, the organization ends up with knowledgeable, capable people who feel valued, and are more likely to be personally vested in a company or organization that invests in them.
But, we’re a training company, so we WOULD say that wouldn’t we? So, let’s take a look at the stats below and see the proven effects training can deliver.
1. Staff Retention
Most managers can agree that attracting and retaining good people has become far more difficult than it used to be, and it remains vital to the health of business activity. It becomes apparent very quickly that for companies to thrive, they need to do whatever is necessary to help the team do well or risk losing them.
According to research conducted at the Middlesex University for Work Based Learning, covering three generations (Baby Boomers, Generation X, and Millennials), over 74% of all participants stated 'lack of training' as the single biggest hurdle in achieving their full potential at work. A whopping 87% of Millennials said that access to professional development or career growth opportunities as being very important to their decision of whether to stay or go.
A survey conducted by PwC asked millennials, "Which of the following characteristics make an organization compelling to work for?" This is what they said:
2. Profits and Productivity
According to the Association for Talent Development (ATD), companies that offer comprehensive training programs have a whopping 218% higher income per employee than companies without formalized training. But it doesn’t stop there, (see, we told you there’d be stats!), these companies also enjoy a 24% higher profit margin than those who spend less on training. Many would argue that continuing to invest in training and development, regardless of the economic climate, is the smartest way to ensure ROI.
As it turns out, training is one of the most effective things that a company can do to increase productivity too. For example, in a study conducted by the National Centre on the Educational Quality of the Workforce (EQW), they noticed the difference between a 10% upgrade in educational development, versus a 10% upgrade in the actual equipment employees were using. This resulted in a productivity gain of 8.6% for education vs. a mere 3.4% increase for upgraded equipment.
3. Employee Engagement
Employee engagement is the emotional commitment to the company they work for, and the organization’s goals. Employee engagement doesn’t just mean employee happiness. Someone might be happy at work, but that doesn’t necessarily mean they are working hard, or productively, on behalf of the organization. When employees care —when they are engaged. Disengaged employees, on the other hand, are essentially “checked out”, lacking in passion and energy.
Unfortunately, lack of training is one of the single biggest factors in creating disengaged staff. This leads to employees who feel unappreciated in their job and a general sense their job not really mattering. They need to be fully engaged, they want to be productive, and when these feelings are activated, they do care about the company.
Training employees and highlighting career growth opportunities is one sure-fire way to show them that their company is invested in their future. It motivates them to be better at their jobs.
4. Training Current Employees is Cheaper than Hiring New Ones
While it may seem simple just to replace one worker with another, consider this: hiring someone can cost up to 30% of the job’s salary. So for losing an employee that makes €40,000 a year, that could cost you around €12,000 in fees to hire someone new. Essentially every three employees that need to be replaced that will equal one entire salary with no real assurance of success.
On the other side, when you provide training to (a willing) existing employee, you will note that your investment of a few hundred euro has generated better results in far less time than anticipated, provided better engagement from the employee and overall produced better results.
Over 70% of organizations say that staff turnover has a negative impact on morale, and also a negative financial impact due to the expense of recruiting, hiring, and training a replacement employee, and the potential overtime costs of current employees that’s required to temporarily fill this gap!
It’s fair to say the perfect employee probably doesn’t exist, at least not when first hired! But through training, learning and development you can shape the level of skills, knowledge and passion required to take your employees, and your business to the next level. If you want highly talented, educated and skilled employees, then the answer is quite simple: you have to invest, engage, and ultimately, create them.
CMG Professional Training are Ireland’s leading short course training specialists, with over 160 courses annually delivered to more than 5,000 professionals. Uniquely, you won’t find many of the courses we deliver available anywhere else...
Check out our courses here, and if you see something that resonates, please get in touch!