Look at the most successful companies in the world today and you will find a common ingredient in their recipe for success, the understanding that their employees are their greatest asset. When companies develop and care for their employees their employees will care for the company and its customers. The result - SUCCESS. So, is there really a correlation between training and developing employees and profitability for the company? Let's look at some of the benefits of training:
Increased productivity
Increased performance
Increased retention
Increased job satisfaction
Increased job knowledge
Decreased turnover
Decreased lawsuits/claims against employer
Decreased worksite accidents
Decreased compliance violations
Based on these benefits it would certainly appear that there is indeed a correlation between a company's profits and training and development. Businesses who mitigate risks and improve production and employee morale are certain to reap the rewards in their bottom line. Before implementing any new programs carefully consider if the training makes sense for the specific business and ensure that it has measurable results in terms of performance, behaviors and company goals. Tips for implementing training programs:
Align training with organizational goals
When providing information always show how to use the information
Follow up by measuring results after training
Reward and recognize behaviors learned in training
Provide “take aways” or “cheat sheets” that can be utilized on location
What do training budgets look like for most companies?
Businesses with < 500 employees typically budget for outsourced training for the following reasons:
*Cost Effectiveness
*Allows a Greater Focus on Core Business
*Provides access to customizable solutions with a much smaller investment of resources than creating and maintaining in-house programs
Estimates show 50% or more of allocated dollars are spent on technical training with a mere 5% on employee orientation and even less on the development of critical “soft skills” *The exception, highly customer focused companies
In the US, total training budgets average between 2 and 2.5% of the payroll with 3% being reported by leading company
A properly managed training budget can provide some of the best ROI in your business
