How important is training? For a startup, establishing a solid training program may seem like a low priority. When times are tight, training might seem a tempting place to trim some fat. After all, time spent in training is time not making money – at least not directly.
But that route soon becomes expensive. Shortchanging training eventually costs the business in money and reputation due to a cascade of mistakes, waste, rework, poor productivity, poor service, frustration, low morale, absenteeism, and staff turnover.
Training is an investment, not an expense. Here are some of the ways training generates revenue.
Training improves quality and productivity
The cost of low quality is well known. A poorly trained, overwhelmed staff cannot perform high-quality work. Poorly designed or incorrect products lead to income loss. Poor use of company resources results in waste and expense. Uninformed communications and inept service erodes trust, putting off potential customers, and souring existing ones.
Skilled employees are more efficient and productive. They perform their jobs confidently and work smarter – coordinating to not get in each others’ way, spotting and eliminating redundancy, recognizing and avoiding missteps and hazards, and making fewer mistakes (thus spending less time on recovery and rework). Liability costs and compliance violations are avoided.
Training boosts competitiveness
Companies that don’t leverage the latest technology become uncompetitive, spending time reinventing the wheel and repeating mistakes, and falling behind.
In contrast, a well-trained workforce can be proactive, improving ROI and profits. They spend less time repeatedly fixing the same issues and this opens up opportunities to develop innovative solutions that anticipate changing business needs. They have the resources to devise new products and services, along with improving business processes to be more efficient and effective.
Diligently trained teams respond rapidly to opportunities and problems. They don’t need to start by researching issues and options; they are already prepared to react quickly and effectively.
An up-to-date workforce is conversant with new technology and best practices. A solid training program helps your business keep up with changing technology and the changing marketplace, and leverage them. Making significant changes in technology or strategy is much less nerve-wracking with a team of professionals who are skillful and decisive.
Training contributes to workplace culture
Failing to invest in training is a failure to invest in the business culture. Over time, that can become fatal. Chaos seeps in, bringing uncertainty and inefficiency. Mistakes increase, as well as misunderstandings and frustrations among workers and with management. People feel unappreciated, poorly utilized, unmotivated, disillusioned, and disengaged. Performance becomes mediocre. The organization’s longevity becomes questionable.
The commitment to invest in a well-targeted training program promotes cohesiveness and loyalty. New employees learn how to do their jobs well and long-term employees are supported in their career goals.
Well-trained teams feel valued and empowered. They are engaged with the company and trust the organization’s vision. They are more committed and motivated to give back. Top-notch professionals are drawn to an organization that makes shrewd investments in its culture and can offer opportunities for professional challenges and working with innovative technologies.
Training attracts and retains the best talent
Scrimping on training may appear to save money, but the cultural impact contributes to worsening morale, growing attrition, and difficulty hiring.
The resulting turnover is expensive, involving the cost of termination, overtime for others until the slot is filled again, perturbation to teams and projects, recruiting, hiring, and orientation and training.
Meanwhile, remaining staff-members grow tired of constant instability. The most talented and motivated employees drift away, the pool of promotable internal options shrinks, and management grows more mediocre — amplifying the effect. The company develops a reputation that’s unattractive to candidate hires.
In contrast, well-trained teams understand how to do their jobs — they feel valued and maintain their interest in a job well done. If they can grow professionally and advance their careers, they are less likely to leave.
Offering the opportunity to grow professionally is a key advantage for companies needing to attract and keep skilled workers. A strong culture of professional development attracts prime candidates, including curious people. With the global marketplace and rapidly evolving technology, both businesses and workers know they need to stay ahead of the curve. Technology professionals are particularly aware of the need to regularly update their skills to stay competitive.
Investing in training benefits both employees and the business. A commitment to training improves how employees perform and how they relate to customers, which helps them build trust and relationships with customers. When that occurs, the odds of customer loyalty and retention increase, meaning repeat business for the company.
You can contact me directly if you have any questions about building a training program and how CBT Nuggets could be the right training for you at firstname.lastname@example.org.