Importance of corporate training

Most employers wouldn’t take on an under-skilled worker, yet many are reluctant to invest in ongoing training for the skilled workers that they have. As workplace technologies and processes evolve, this lack of ongoing training leaves once skilled workers lagging behind.

Related: Learn how to implement an effective employee training program

How can a business compete with a weaker workforce than its competitors? The short answer is that it’s somewhere between difficult and impossible!

Here are five reasons why you should invest in employee training:

1. It’s expensive to lose employees
Hiring new employees is never cheap. A recent survey cited by the go2HR Society indicates that 40 percent of employees leave their positions within the first year due to poor training opportunities. Furthermore, the Centre for American Progress reports that replacing an employee can cost 20 percent of the annual salary for employees who make between $30,000 and $50,000 (and up to 213 percent of the annual salary for highly trained executives).

Therefore, if staff who receive training are more likely to remain employees and it costs money to replace staff, it simply makes sense to train and develop current employees.

2. Trained employees are more efficient
When your employees are able to complete tasks more quickly because they know exactly what to do using the most effective methods, there are two immediate benefits to your business:

They complete more tasks in a given period of time, maximizing your return on investment (i.e., the hourly wage you pay employees).
Customer satisfaction is likely to be higher when your services are delivered in a timely manner.
3. Trained employees have higher production standards
Of course, getting work done quickly loses its impact if it isn’t done properly.

Employees who are well trained are more likely to produce higher-quality output the first time around, thereby minimizing mistakes. This creates less wasted time in rework and customers delighted with quality, reliable goods and services.

4. Trained employees will retain and grow your customer base
Some of the points we’ve already seen describe how training can directly impact your customers’ satisfaction.

And this is very important because customers leaving you is bad. It’s generally accepted that it’s less expensive to maintain existing customers than it is to win new ones.

Losing a customer is a double loss; you’ll lose ongoing revenue from that customer, and it’s unlikely that they’ll be directing potential, new customers to you.

The opposite is also true. A delighted customer can give you a double win! Not only are they liable to become a return customer, but they are also more likely to refer new customers to you.

So, having well-trained staff that results in satisfied customers can save you money, generate revenue, and grow your customer base.

5. Training doesn’t have to be expensive
Training’s 2014 Training Industry Report shows that 28.5 percent of training hours were delivered via online or computer based technologies (i.e., no instructor), and 29.1 percent of training hours were delivered via blended learning methods.

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