Why is training so important in the workplace?
March 11, 2019
Traditionally, employers have viewed training as part of the cost of doing business. To ensure that their employees have the necessary skills and qualifications to reach their goals, companies must invest time and money in educating their workforce.
But because of the perception that it can take weeks, months or even years for businesses to see a tangible return on their investment, training may not seem like a priority. Indeed, only 66 percent of US companies provide employer-sponsored training.
However, in today’s marketplace, employee training programs can be incredibly useful for improving employee recruitment and retention as well as optimizing productivity, regardless of industry.
Why training improves recruitment efforts
In earlier eras, workers across all sectors wanted the same things from their employers: good pay and quality benefits. However, millennials, which are now the largest generation in the American workforce, have different priorities. And with the U.S. rate of employment currently at a near-record high, organizations need to cater to those priorities in order to acquire the best available talent.
While millennials want to be well compensated for their efforts, money isn’t everything for them. In fact, a survey found that less than 40 percent of Generation Y workers consider having enough money to be a sign of success. Instead, they also place a premium on professional growth facilitated through additional training.
Indeed, a recent Gallup poll found that 87 percent of millennial workers want to work for companies that offer professional training to their employees. As such, large corporations such as AT&T and Amazon have made the prospect of training a key part of their recruitment efforts.
And thanks to the emergence of online employee training programs, organizations can offer the training their most promising candidates desire at an affordable rate.
How training can improve employee retention
Just as training can serve as a powerful enticement to the potential hires, it can also serve as an effective employee retention technique. That’s because today’s workforce views training as a key driver of contentment.
And that is something that businesses in all industries need to be aware of, since millennial workers don’t have the company loyalty of the older generations.
Around 21 percent of Millennials switch jobs annually, and 60 percent say they would be open to switching jobs if a better opportunity was made available. This is a problem for organizations of every size, as recruiting, hiring and onboarding skilled workers can be a costly and time-consuming process.
According to the Society of Human Resources Management, it takes the average US company 36 days and $4,425 to hire a replacement for one of their staffers. And that’s just in direct costs.
Losing a quality employee can have can have a negative impact on existing customer relationships, workplace morale and the inevitable workflow errors that crop up when a new worker is integrated into an existing system. For that reason, human resources experts estimate that the real cost of replacing an employee can be as much 1.5 to 2 times their annual salary.
An IBM study revealed that workers who feel that their company doesn’t provide the resources to allow them to develop their skills and pursue their long-term career goals are 12 times more likely to leave their jobs than their content counterparts.
Consequently, organizations interested in optimizing profitability should make training programs one of their go-to employee retention techniques.
How training bolsters employee engagement
Lastly, businesses in every industry should make employee training a priority because it has been found to foster a strong sense of engagement in workers.
This is important because disengaged employees — staffers that come to work on time but are not focused on their work and feel disconnected from their jobs — have a massive negative impact on US industry.
In fact, employee disengagement results in $350 billion in lost productivity every year. And as 71 percent of millennials feel either unengaged or actively disengaged from their work, this issue that simply can’t be ignored.
Conversely, companies that foster a culture of engagement enjoy a number of tangible benefits. On average, organizations with engaged workforces have 31 percent higher productivity, 37 percent more sales and 147 percent greater earnings them their disengaged competitors.
One proven way to combat disengagement is by initiating employee training programs. Surveys have found that millennial workers view such initiatives as an investment in their future success and come into work feeling more valued and motivated as a result. That’s why companies that make employee development a core value have more than double the median revenues of companies that do not.
Why JetPay should be your company’s employee development partner
Whatever stage of development your company is in, JetPay can handle all of your employee development needs. Our robust JetSource software and support solution makes it easy for businesses of all sizes to develop online employee training programs that will appeal to today’s workforce. And as a fully integrated service provider, we can also handle all your payments, human resource management and payroll needs.
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