The latest Investment in Training Survey has shown that the UK spent a staggering 45.4 billion pounds on employee training in 2015, which is an increase of 6% from the previous survey.
However, some companies don’t actually value training as much as they should. In fact, Love Energy Savings surveyed 1400 people and found that nearly half, 49% don’t believe that their employer is offering them enough learning and development opportunities through training. This can cause serious problems as if you don’t train your staff, there will certainly be skill gaps within your business.
The Employer Skills Survey found that 60% of skills gaps are deemed to be caused by the fact that staff were new, and 56% because staff training had only partially been completed. So what is the impact of that? 66% of employers with skills gaps reported these skill gaps impact their organisations performance. Therefore, it is vital that employees receive efficient training when joining an organisation, or it can seriously affect the company. Prestige Recruitment Group outline some critical reasons why you need to invest in employee training.
1) Cost of Turnover
Staff turnover within a business is very normal but if your turnover is high, you are wasting immense money having to constantly hire new people. Therefore, investing in training is a far more effective way to spend your money, as by supplying training to all members of staff, your existing employees will feel engaged with your organisation. When constantly learning new things, your employees feel more valued by your company and so are more likely to stay loyal. This means they will not want to go elsewhere – which is a major win for reducing hiring costs.
2) Helps Your Business Run Better
If you have a business built up of expert employees, there is no denying that your business will run better. Thorough training ensures that every employee knows exactly what they should be doing and when, while also understanding how they should do it. Therefore, every company should be working towards having a full team of people knowledgeable in the field they work within – it just makes sense.
3) Your Company’s Reputation
Having a company that is reputable as an organisation that cares enough to provide thorough training and education is great for hiring new employees. In today’s society, company review websites such as Glassdoor have serious effects on your company reputation. If you are known to have a great training program in place, which thoroughly teaches employees about the industry, you will have a wider choice of candidates as more people like your company culture and want to work for you.
4) Knowledge Efficiency
Efficient training programs mean that you are able to cross-train employees so that they are knowledgeable in different areas of the business. By teaching a wider breadth of skills, you are not only developing the employee’s personal skills and increasing employee engagement; you are also being efficient as a company. Having employees that are trained in a wide variety of things means that you can fill in for absences if you need to. Cross training also fosters team spirit, which adds to your company atmosphere.
Training is also essential in knowledge transfer as by spreading knowledge throughout all employees, you have support with training future hires as everyone can help train each other. It also means you aren’t left in the lurch if one employee who was very skilled at something particular leaves.
Having well-trained staff means that it is easier for their roles to develop into management. If you need to find a manager for your company, you are safe in the knowledge that the employee you hire will have knowledge in the things you need them to – because you have trained them. Another huge benefit is that by hiring internally, you substantially cut recruitment costs.
Investment into training makes sense. It should start from day one and continue throughout the employee’s career. Although it may take some time to see return on investment, the long-term gain makes a huge difference. Prestige Recruitment Group thoroughly understand this, and that’s why we have developed our Training Academy and Training Workshops. We're currently in the process of writing a blog all about our exciting new academy so look out for it!
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