Training is one of the most important aspects of any company and should be viewed as an investment rather than just an expense. Training consulting and consultants are something that many successful companies turn to in order to revamp their training programs.
As the cost of big data decreases thanks to cloud services, it’s now cheaper and simpler to track almost everything, including employee data. Developing tailored training programs like microlearning helps new employees get up to speed more quickly and effectively. This is important because traditional classroom learning methods are not retained by 90% of people after a year.
As the economy shifts more towards a knowledge-based model, it’s not smart to spend as little as possible on employees to save money. In fact, many companies have done the opposite and seen significant gains in their profits. Numerous examples exist of businesses that have invested in their employees through higher wages and training, leading to increased overall profits.
Make Training Important
Training is important to any business because it is essentially a succession of how a business is conducted. When someone first joins a company in a job role, there is often confusion at the start. With many employees having more influence and power on the company bottom line than ever before due to changes in technology, mistakes can cost thousands or millions of dollars on the company bottom line.
Treat Training As An Investment
Investing thousands of dollars in training to prevent mistakes that can cost a company millions of dollars is a trade that any smart company would gladly make in a heart beat.
Micro-learning and other new training methods are gaining steam and you can bet your competition is improving internal efficiency with custom training and so should you.
Make Retention A Priority
One cost that many companies do not realize is hurting their bottom line is employee turnover. One of the most common reasons cited for employees leaving a company is lack of training and investment in their employees. With the fast pace of business today, it can be difficult to try and slow down to train each new employee.
Make Managers Understand Priorities
However, smart companies with a focus on profitability understand that retaining employees can save thousands or millions of dollars a year and investing time into employees is always a value added venture. Use training packets to ensure that managers understand the importance of training.
Find Value Added Initiatives
Smart companies that want to remain relevant in the market place should always be looking for activities or initiatives that are value added to their company. If a company can spend one dollar to save ten dollars, this is a value added act for the company. With employee training and retention, the same logic applies and has been proven time and time again in the market place.
Make Training A Team Activity
Companies with the highest employee retention and productivity are those that invest the most time and money in to their employees. Pay for conferences and other team training that members of a team can perform together.
Learn From Examples in Business
One of the best real world examples of companies that pour in to their employees through training and other methods is Costco. When working at Costco, there is a very detailed training process for employees even though to the lay person it seems as though their jobs are not very skilled. Costco employees are paid roughly double that of the competition and turnover is almost non existent. Due to their investment in their employees, Costco enjoys lower turnover and higher morale from their team. In addition, they attract the best and brightest employees from all over the industry who want to work for Costco.
Measure Gains In the Bottom Line
Many times in business, investments must be made and it is years before the rewards are seen. However with training, these rewards are often times realized and seen much more quickly. Investing into employees is something that a business can realize the dividends on very soon, and this is one of the many reasons why businesses are so happy to pour more money in to their employees. At the end of the day the purpose of a business operating is to make money, and one of the best ways to do this is to pour in to the employees that work there. Measure the gains earned from investments in training and tweak where necessary.
Make Training A Part of the Culture
Overall, training programs within a company are one of the most important initiatives that anyone can take on. Training allows employees to feel more empowered and limits mistakes on the job. In addition, morale for well trained employees is much higher because they have more confidence and ownership within their job as a whole. Training employees well should become an integral part of a company culture.
Enjoy the Rewards
Due to the technological changes in the work place over the past ten to twenty years, workers are more productive than ever and control a larger portion of the company bottom line. Limiting mistakes for new hires can save companies millions of dollars every year and can help with employee retention as well. After changing the culture and completing steps outlined here, be sure to enjoy the rewards of an increased training program!