Staying competitive is the key to sustainability. Training your staff, keeping them motivated and up-to-date with industry trends and new technologies is essential to achieving that goal.
Staff benefit too, learning new skills and becoming a valued asset in any organisation. Training brings direct benefits to business and can be calculated as a return on investment.
Regardless of the size or type of an industry or business, training can have a measurable impact on performance and the bottom line.
Research shows that productivity increases while training takes place. Staff who receive formal training can be 230% more productive than untrained colleagues who are working in the same role.
High labour productivity increases business output and can open a greater share of the market or expand it by improving products, services and reputations. Successful training is focused on supporting your business objectives.
Training increases staff retention which is a significant cost saving, as the loss of one competent person can be the equivalent of one year's pay and benefits. In some companies, training programs have reduced staff turnover by 70% and led to a return on investment of 7,000%.
Improved Quality and Productivity
Training that meets both staff and employer needs can increase the quality and flexibility of a business's services by fostering:
- accuracy and efficiency
- good work safety practices
- better customer service
Most businesses provide on-the-job training, particularly during induction. Ongoing training almost always shows a positive return on investment.
The Flow-on Effect
The benefits of training in one area can flow through to all levels of an organisation. Over time, training will boost the bottom line and reduce costs by decreasing:
- wasted time and materials
- maintenance costs of machinery and equipment
- workplace accidents, leading to lower insurance premiums
- recruitment costs through the internal promotion of skilled staff
Staying Competitive - Businesses must continually change their work practices and infrastructure to stay competitive in a global market. Training staff to manage the implementation of new technology, work practices and business strategies can also act as a benchmark for future recruitment and quality assurance practices.
As well as impacting on business profit margins, training can improve:
- staff morale and satisfaction
- 'soft skills' such as inter-staff communication and leadership
- time management
- customer satisfaction