Companies which provide excellent, comprehensive training to their employees have 218% higher income per employee. – Says a study by ATD (Association for Talent Development).
In fact, companies like these have an advantage of about 24% higher margins for profit as well.
With studies like these, it becomes clear that there is a strong association between employee training and business growth. However, there is still a need to dig deeper into this relation to understand it in a better way.
While most enterprises rely heavily on employee training and deploy innovative ways of learning as well, many SMBs and early-age startups are left with a choice to cut down on the training budget or even to avoid it completely.
What these businesses fail to understand is that even though they are saving immediate costs, they might be losing out of huge potential profits.
In order to understand the vitality of employee training, let us take a look at its impact on the growth of your business objectively.
1. Training improves productivity and quality of work
When a new person is hired for a job, many companies follow the normative Compliance Training program and avoid any special skills training which might improve the new employee’s performance and reduce their learning curve.
Here, we can see three possible ditches that might occur-
- The employee takes a longer time to get comfortable in their new workplace.
- They might try to learn the required skills from either wrong sources, following a wrong method or not learn at all.
- Their steep learning curve would translate into a higher investment for the company on lower returns.
No business likes to fall into the ditch of having incompetent employees on board. The reason for this is simple; it affects the productivity of employees and even compromises their quality of work. And every business person is aware of the cost of low-quality products and services.
The bottom line is that well-trained employees are skilled and skilled employees are highly proficient at their jobs, and highly proficient employees create high-quality services that increase your revenues.
2. The training introduces healthy competition
The healthy competition can be among colleagues and among business can prove to be vital for their success.
Human is a competitive being. By kindling that part of their minds, you can open the gates to unending motivation, fantastic efficiency, and high productivity.
In fact, competition can be seen as short term goals of a team. With every achievement, they move forward, learn more, contribute more, and feel valuable. Whereas, the companies which fail to challenge themselves and their employees fall behind in the market, committing the same mistakes and reinventing the wheel.
To stay ahead in the competition, your employees will stay up-to-date with market trends and invest their time and allocated resources to invent better ways of working.
And for achieving this level of pace and competition, self-training content is an excellent choice for companies. Promoting self-learning in workplaces will not just give you a healthy and competitive team, but it will also help in surfacing the leaders of the pack. When people are responsible for themselves, the ones who take charge of the situation will find mean to polish their leadership skills.
3. Training builds the company culture
With Millennials and Gen-Z taking center stage in most of the companies around the world, healthy company culture has become the top-most priority.
And why not?
According to a Gallup survey, having a positive culture in the company attracts more and better talent, which can potentially increase the revenue by 33%.
Many startups and enterprises believe that company culture refers to having a more comfortable and casual seating area or having table games. However, in reality, a healthy culture means having high engagement, positive reinforcement, teamwork, and inclusivity.
After all, high engagement is correlated with every metric that signifies business growth – Efficiency, high retention, productivity, employee satisfaction, high revenues, customer satisfaction.
Good company culture also means making good employees better and allowing better employees to grow in the company. This growth can be achieved by extensive training of employees.
From special skills training to leadership training, investing in an engaging course can improve a company’s performance and culture dramatically.
It builds a culture of learning, teamwork (through group exercises), competition (through tests and quizzes), and much more. Training helps employees to come out of their comfort zones and contribute to organizational growth as well as work on their personal growth and take bigger responsibilities.
4. Training retains talent
Every business leader is aware of the fact that some employees become invaluable assets for their companies.
These indispensable employees are more likely to be the ones who get attracted to a healthy and learning-based culture of a company. They want to learn as much as they can and grow.
When a company cuts down on the training course’s budget for its employees, after a while, they start feeling they are doing repetitive jobs, and there is no real scope of personal growth.
On the other hand, the companies which recognize the timely needs of its employees and provides them with preparatory training for their future responsibilities retain their best employees till the end.
This is not a one-time thing; it is an ongoing process. And it must occur organically so that your employees know that you care about their own growth as much as the companies.
In the end,
It is essential for business owners to not see it as an expense but rather, an investment. It benefits the business and the employees equally and more than anything, it builds your brand’s reputation in the market.
There is an undeniable relation between training and business growth, after all. A well-trained employee is aware of the trends, can entertain with customers well, ensure customer satisfaction, and bring more deals, is satisfied with work life, and is highly motivated to perform.
Every company is the summation of its employees, and if the employees are getting better, that means the business is growing.