Last year, US training expenditures increased by almost 33%, reaching $93.6 billion. Such expansion reflects the fact that businesses now realize how important investing in employee training and workforce development is. The numerous benefits of workplace training and development can be placed into three main categories to explain why employee training and workforce education and development activities are an essential to drive companies’ overall success.
The costs related to high employee turnover are momentous. If an employee is dismissed, fired, or suddenly leaves a company, it has to absorb these expenses. Expenses are related to placing new job postings, screening applications, interviewing, and onboarding and training but also gains are limited while a new employee takes time to get integrated into the company—and all of that is on top of the blow to the team’s morale.
Employee training and development programs are the ultimate foundation of employee retention. Workers are 12 times more likely to quit their job if no opportunities for development are offered. In particular, the possibility to learn and grow within a company, both professionally and career-wise is crucial for 87% of millennials. Additionally, 53% of millennials now feel that their companies fail to provide enough personal development and training opportunities.
The number of millennials who will not hesitate to switch employers if no opportunities for development and growth are offered at their current company should not be underestimated: Millennials will account for 75% of the global labor force before 2025. Businesses must focus now more than ever or they will pay the price.
Employee Training Upskills Your Current Workforce
It would be naïve to think that the talents you hired for a position have the right skills to deliver results with the same quality and capabilities five years from now. This is not a result of lousy HR and hiring procedures; it is because the market is changing at such a fast pace that demand, industry, technology, social behavior, and job requirements are all evolving to adapt to the new, digital world. Therefore, skills gaps within companies are the new normal, and today’s top employers are experts at making sure that these continually get filled.
If you are tempted to fire employees with skills gaps and hire new ones with fresh skill sets, you should think again: Replacing an employee could cost you up to 2 times the employee´s annual salary. Instead, employee training and development are game-changers that can keep workforces competitive. On the one hand, training and development keep a company at the cutting edge in their industry. On the other hand, they contribute to an engaging, positive, and motivating working environment. 68% of workers admit that training and development programs are the most important organizational policy.
Employee Training Promotes a Culture of Learning
According to the HBR, strategy and culture are essential factors affecting business growth and performance, companies that promote a learning culture are usually the top performers. Think about Google, for instance. Creating a learning culture means that companies must prioritize development and allocate time and resources to training and upskill their workers. However, it also implies that learning is not considered as something separate, but that it is genuinely a part of internal processes in a culture where failure is accepted and curiosity is embraced. If the task seems challenging to accomplish, the results are totally worth it.
Statistics have shown that employees who receive training are 37% more productive and can produce a 21% increase in income per person. Employee engagement has a direct impact on employee satisfaction, which in turn is a driving factor for employee retention. As the battle for skilled employees is getting fiercer, the businesses that succeed at creating a learning culture are those who will retain talents, and, as a result, ultimately thrive in the market.
PDAgroup creates digital training content for businesses and hosts it on the digital cube platform. Get in touch with our digital learning guru Vitali Auracher to make your business training process a digital one.
“This article was written by Sara Lunardelli (LinkedIn). Sara is a Business Development Consultant at PDAgroup. Her core focus is on assisting the Sales and Marketing departments by developing new strategies for the company´s growth, prospecting potential leads and supporting in product delivery.”