Investments in Training and Development2nd September 2022 1 By indiafreenotes
Most people have worked for a company that has offered some type of training and development for their employees. From in-office classes to specialty workshops to college hours, it all adds up as an investment in your business, as well as your employees. With current economic conditions, some businesses are making the decision to steer away from developing their most important asset, their employees, because they don’t see the need for it any longer, or they are simply trying to cut costs.
Investment in employability
– (Training, internship, higher level exposure, learning environment, multi- skilling & growth opportunities etc. which makes employees more employable.
- Investment in training.
– For future strategies and competitive advantage investment in employees training and development to enhance skills to face rapid technological changes.
- On job training.
- Investment in management development
- Prevention of skills obsolescence
- Reduction in career plateauing. (Stagnation)
Investment practices for improved retention:
- Organizational culture emphasizing interpersonal relationship values.
- Effective selection procedures.
- Compensation and benefits.
- Job enrichment and job satisfaction.
- Practices providing work life balance.
- Organizational direction creating confidence in the future.
- Retention of technical employees.
- Other practices in facilitating retention.
Investment in job secure workforce:
- Employment security/ job guarantee.
- Recognition of the cost of downsizing and lay-offs.
- Avoiding business cycle-based lay-offs.
- Alternatives to lay offs.
– Curtailment of sub contracts.
– Reassignment of work to company employees.
– Pay cuts.
– Paid / unpaid leaves.
- Ethical implications of employment practices
- Non traditional investment approaches.
– Investment in disabled employees.
– Investment in employee health.
– Countercyclical hiring .-keeping highly technical / skilled for future use when company will have normal operations– bhatta business.
Attracting Better Employees
Companies that offer good paying jobs with room for advancement will always garner a massive amount of interest in their open positions. But, in the hunt for top talent, anything you can do to establish your company as a great place to work is going to pay dividends. One way is to offer employee training and development. This will enable employees to excel in your business as well as their chosen field. This can be as simple as offering in-office training for better pay, advancement opportunities, or bonuses.
Those businesses out there that offer on the job training and development for their workers see more motivated candidates for their open positions. Knowing that there is room for advancement and room to improve themselves is going to be a big draw for potential employees. Having that opportunity there in front of them also gives them the chance to become more engaged in their position, the company, and generally be a happier person at work.
Benefits of Training and Development
So what types of benefits are you going to see in your business if you start to invest more in your employees? There is a long list of benefits that you will enjoy from this simple action, and here are a few of my favorites:
- Motivation: As I mentioned previously, motivation goes way up when people know that they can move up in a company. They want to perform better and show that they are ready to learn new things to gain better positions in your business.
- New Technologies: Offering training in a new technology that pertains to your field is key in keeping your business current, competitive, and on top of the latest market trends. It will ensure that you and your employees know how to run with the rest of the pack and stay competitive in the business world.
- Lower Turnover: When employees know that their company cares about their career, and is willing to offer training and opportunities to improve themselves and advance, they tend to stick around a bit longer. This means less hiring and firing for you, and more time doing business and making money.
- Lower Risks: Offering specific training in the workplace, such as sexual harassment prevention, can mean less risk for you when hiring new employees, and keeping the old ones. This has the potential to allow your business to run more smoothly, with less hiccups or problems in the long run for you.
- Satisfaction: Along with lower turnover and increased motivation, when employees are trained well they become happier, more confident, and have higher overall satisfaction doing their jobs. If you can enable all of your employees to feel this way, you have just created a great working environment, and your employees are more likely to stay with you, and not be on the lookout for another job.
- Image: Your business image means a lot to you, but, it also matters a great deal to your employees as well. When your employees are trained and feel that they can continue to grow with you, it gives your business a better image in their eyes and everyone else’s. You’ll find that your business will become known as one that cares about its employees and ensures that they are not only happy in their job, but, happy overall in their life as well.
One of the best things about training your employees is that it doesn’t have to cost you much at all. You can offer in-office training on a multitude of topics that relate to the workplace (such as sexual harassment and safety), and those that relate to upgrading skills (such as computer training). No matter what you offer, make sure that it all pertains to your business, your field, or growing your employees.
Offering online training can also be a huge help, and you can even do this extremely cheap by creating your own training website for your employees. There are thousands of great articles on how to create a website for training your employees out there and you can even do it without much web design background at all. By offering everything online, employees can easily do this when they have time or during a set time at work thus improving themselves and their performance.
Support Succession planning.
Providing ongoing employee training and development supports succession planning by increasing the availability of experienced and capable employees to assume senior roles as they become available. Increasing your talent pool reduces the inherent risk of employees perceived as “irreplaceable” leaving the organization. Areas of training that support succession planning include leadership, strategic decision making, effective people management, and role-specific skills.
Increase employee value
Effective training can be used to “up-skill” or “multi-skill” your employees. Up-skilling involves extending an employee’s knowledge of an existing skill, providing more experts within a subject area. Multi-skilling is the process of training employees in new or related work areas to increase their usability within the organization. Employees with diverse skill sets can perform a variety of tasks and transition more easily into other roles within the organization.
Reduce attrition rates
Investing in the development of your employees can reduce attrition rates. Well-planned training can provide career pathways for employees making retention within the organization rather than seeing them seeking next-level opportunities elsewhere. Another positive is a reduction in recruitment costs.
Enhance operational efficiency
Training your employees can increase their efficiency and productivity in completing their daily work tasks. Training can also help your organization achieve greater consistency in process adherence, making it easier to project outcomes and meet organizational goals and targets.
Exceed industry standards
Training your employees in industry-standard best practices could also assist you in building your reputation, giving your competitors a run for their money! Many businesses operate in saturated markets, so often it’s the small things that will set your business apart from the rest.
Employee Training is Worth the Investment
Staff training is essential for specific purposes related to your business. You may require new workers to undertake instruction in first aid, food handling or a new booking system. Incorporating training that develops employees toward long-term career goals can also promote greater job satisfaction. A more satisfied employee is likely to stay longer and be more productive while on your team.
The cost of turnover
A recent survey indicates that 40 per cent of employees who receive poor job training leave their positions within the first year. They cite the lack of skills training and development as the principal reason for moving on.
Consider the cost of turnover. With one fewer worker, your company’s productivity slips. Sales decline. Your current staff members are required to work more hours. Morale may suffer. To find a replacement, you spend time screening and interviewing applicants. Once you hire someone, you need to train that person. The cost of staff turnover adds up. Figures vary, but it can cost as much as $2,500, depending on the position, to replace a frontline employee. That is a hefty price to pay for not training staff.
Other benefits of training
Despite the initial monetary costs, staff training pays back your investment. Here are just some of the reasons to take on development initiatives:
- Training helps your business run better. Trained employees will be better equipped to handle customer inquiries, make a sale or use computer systems.
- Training is a recruiting tool. Today’s young workers want more than a pay cheque. They are geared toward seeking employment that allows them to learn new skills. You are more likely to attract and keep good employees if you can offer development opportunities.
- Training promotes job satisfaction. Nurturing employees to develop more rounded skill sets will help them contribute to the company. The more engaged and involved they are in working for your success, the better your rewards.
- Training is a retention tool, instilling loyalty and commitment from good workers. Staff looking for the next challenge will be more likely to stay if you offer ways for them to learn and grow while at your company. Don’t give them a reason to move on by letting them stagnate once they’ve mastered initial tasks.
- Training adds flexibility and efficiency. You can cross-train employees to be capable in more than one aspect of the business. Teach them to be competent in sales, customer service, administration and operations. This will help keep them interested and will be enormously helpful to you when setting schedules or filling in for absences. Cross-training also fosters team spirit, as employees appreciate the challenges faced by co-workers.
- Training is essential for knowledge transfer. It’s very important to share knowledge among your staff. If only one person has special skills, you’ll have a tough time recouping their knowledge if they suddenly leave the company. Spread knowledge around it’s like diversifying your investments.
- Training gives seasonal workers a reason to return. Let seasonal employees know there are more ways than one to contribute. Instead of hiring someone new, offer them a chance to learn new skills and benefit from their experience.
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