4 Reasons Why Employee Training Is Essential For Company SuccessAdmin
HR Magazine states that companies that invest $1,500 or more per employee per year on training average 24 percent higher profit margins than companies with lower yearly training investments. On-boarding, job enrichment, technology training, development training, and career management training are just the start of topics companies can train. Below are four reasons why employee training is essential for business success:
Builds loyalty and company engagement.
According to SHRM, workers are the most engaged with a company for their first six months of employment with them. With that said, only about 52% of employees are engaged at any point in time with their company. If employees are not engaged with their company, it holds a greater risk of lower productivity and eventually the employee leaving the company. Training employees build loyalty because the employee knows the company is interested in investing time and money into them. 43% of job seekers value growth opportunities when looking for a new job position (Jobvite). If employees have the training to look forward to, they may be less likely to look elsewhere for career growth opportunities.
Brings in more money for your company.
Well trained employees not only can make your company money, but they can also save your company money. Well trained employees make fewer errors because they already know what they are doing. The American Society for Training and Development found that companies that have comprehensive training enjoy a 24% higher profit margin than those who spend less on training, and generate a 6% higher shareholder return if the training expenditure per employee increases by $680.
Key selling piece for marketing your company to potential employees.
With career development and growth opportunities in the top 3 of what job seekers look for in a position, training is a crucial part of selling your company. Businesses can post training opportunities in job descriptions or on their website to share with potential employees the possibilities. A big complaint on websites like glassdoor.com is that employers did not give training opportunities to employees. These opportunities can positively impact your reviews on the job sites.
Increases employee confidence and overall life satisfaction.
Employees value companies who take a genuine interest in their future. Giving training to employees allows them to be more equipped for their positions. This will increase their self-confidence and their ability to perform job tasks to their best of their abilities. Transferable skills from the training sessions may be gained from the training opportunities that could increase employees overall life satisfaction.