Did you know that when an employee quits it can end up costing you 20% to over 200% of their salary?
And did you also know that ineffective training is another expense that so many businesses are struggling with today?
Studies have shown that employees want more than a good salary to go by. They want to work in a place where they feel valued. They want to wake up every day knowing that they are not only coming to make you money but are developing themselves in the process.
If the current economy is anything to go by, it is natural for you to want to concentrate on cutting back rather than adding to the budget.
However, at the end of it all, there are some investments that you just can’t choose to ignore. Your employees!
They are the reason that business is in existent; they are the reason you are hitting those numbers.
Therefore the primary area that you should be striving to improve is the human capital. You cannot afford to sit back and watch your best employees poached by your competitors who offer them better opportunities for career development.
What it all boils down to is that employees are an investment rather than an expense.
And you don’t have to start all guns blazing paying education fees and all. Just go through your budget and tailor your training towards it.
What is the importance of employee training in today’s competitive world?
The importance of training your employees both new and experienced cannot be overemphasized.
Companies that offer trainings to their employees have reduced turnover because employees feel valued.
The mistakes that I have seen a lot of employers make is live under the illusion that training should only be done on new staff and this is rarely inclusive. A lot of time new staff are just trained on how to do the job and then they are on their own afterwards.
They are supposed to fend for themselves and look for ways to develop themselves in the job.
Training your manger is also as equally important as inducting that new worker to workplace safety, productivity and satisfaction. Among the most useful skills that can be addressed are manager communication, leadership, performance management, labour laws, project management and employee motivation and recognition.
Think about it; who would you rather work with; someone who is invested in your growth and is not afraid to stretch their resources to see to that or someone who just expects you to deliver on the job but will do nothing to see that you have the basic training to achieve optimal performance? I am sure you would go with the former.
If this is the case, then why do some employers refuse to put any training in place?
Despite how important formal employee training and development is, you may be hesitant because;
- There is resistance from both employees and the manager where both groups feel that the training is taking away important time that could be utilized on other things.
- With the current economic temperature maybe you are willing to have training but are hesitant to allocate funds to make it happen.
If this is you what then do you do to make the best of your employees?
Start slow; you don’t have to roll out an elaborate training from the word go.
Look at who needs to be trained, their needs and how those receiving the training will impact on the overall goal of the company.
I mean, for instance, what is the use of spending an entire day and a lot of resources training two interns whose efforts do not translate directly to the business. But the same cannot be said about line managers; they hold the business in place and you need them if the company is to realize its growth potential.
What are the cost implications of such trainings?
Like I mentioned, employee development is the greatest investment you can every make.
Don’t fall into the habit of thinking that if you develop your employees, they will leave you and go utilize the skills they have acquired elsewhere.
You are investing in them so that they can serve you better; you are empowering them to realize their potential.
There are so many companies out there than have trainings geared towards your needs as a company.
Your employees need to feel that you have their best interest at heart. Paying a g0od salary does not mean that they will stick with you.
Career growth opportunities are at the top of list of why an employee accepts a job offer and it is the same reason they will leave in search of greener pastures. Therefore be careful how you handle them and what you hand to them.
An investment in your employees is an investment in your future!