The importance of training and development is not to be overlooked. Unfortunately, training budgets are the first ones to get cut. But investing in employee development can manage liability risk, reduce employee turnover and improve productivity, increase performance and helps attract and retain the highest qualified employees. It can also improve the bottom line and strengthens your entire organization.
Let’s explore how effective training can lead to better productivity, employee turnover, and manage liability risks. But first, here is what an effective training program entails.
What an Effective Training Program Looks Like
An effective training program will include the performance and behavioral expectations right from the start of employment. These expectations are beneficial in mitigating risk and maximizing productivity.
A training program should also have clearly identified goals from the outset. This sets reasonable expectations for your employees and your learning and development team.
Another component of an effective training program is quality training materials that work for your employee’s learning styles. Audio, visual and kinesthetic learners require different materials to successfully absorb the information. Today’s learners require more engagement and a mixture of different content designed to offer a learning environment driven by action and participation.
By building a training program built for your employees, you can maximize your training investment.
Now let’s dive into what type of Return On Investment your company can expect from an effective training program.
How it Improves Productivity
Most of us would agree, there is little worse than not knowing what to do on your first day on the job. You feel frustrated, confused and lost. Productivity is non-existent your first couple of days.
Employees need to fully understand the expectations of their job along with what their managers need from them. Onboarding and new hire training definitely increases their ability to be productive quickly while building their confidence in what they are doing . This is such a critical time because it also sets the stage for them to beome a highly engaged employee and valuable part of the team.
Employees that are engaged with their jobs are more productive and produce higher quality work. This also creates an environment of high employee satisfaction and retention. Companies can improve productivity through consistent and dynamic training programs.
If you want to increase productivity, give your employees a new sense of purpose by improving their skills and increasing their confidence and job satisfaction.
How Reduced Turnover Correlates to Effective Training
Reduced turnover is linked to effective training. Productivity and employee satisfaction also match up with a reduced turnover rate. When a company invests in the employee, the employee feels valued and cared for. This improves employee satisfaction and motivation. It also greatly reduces the risk of losing that member.
Companies fair better by investing in their current employees than they do if they have to hire and train a new employee. It costs an average of $11,000 to fill one position, making the cost to train an easy alternative.
Employees would rather be trained and productive than go through the process of finding another job. If they get the right training, they feel more committed and valued which in turn builds loyalty. That loyalty is priceless and ultimately allows companies to retain their qualified and highly productive team.
With the high cost of employee disengagement at ($260B) per year (Patrick please put the right number in) and the average per employee cost of training at ($1,100) per year, companies should look at the value of a small investment in training against the cost of having a disenfranchised team member who is not highly productive and can have a negative influence on others.
How Training Decreases HR Liability Risk
Regardless of the industry, HR and Sales team will be subject to regulatory and legal requirements. Companies risk serious fines and liability by failing to properly train employees. This can come in the form of a less-than-desirable financial outcome, fines, or even lawsuits.
A proper training program can serve as a defense against these scenarios. Well executed by your HR or training group, a training program can be the only thing standing between a company and serious financial burden and litigation.
Maximize your talent, protect your business, and reduce employee turnover by investing in effective training programs for all employees.