“COO to CEO: What if we train and develop them and they leave?
CEO to COO: What if we don’t train and develop them and they stay?”
There is the ongoing debate whether training is should be treated as investment line item or an expense line item on the profit & loss statement of a business. More often, the first line of expense to disappear on the menu of a company’s budget at slow economic times is training and development. However, many have argued that it is indeed the time that businesses should be investing more in the training and development of its employees. Even during good economic times, particularly in retail industry, because of the very high staff turnover rate, many have argued that it may not be worth investing in employees knowing that the chances of them staying with the business to guarantee a fair return on investment is slim.
Two questions that I would like to draw our attention to, perhaps answering them will help answer the opening questions above.
- What is the cost of retaining inefficient and ineffective employee?
- When they leave you, where do they go?
Beyond staff training and development, there is the more important issue of continuous staff training and development to which we would like to draw the attention of readers. Business training is a continuous process which must be set out according to the real needs of each organization, and focus on the development of skills and knowledge to help the employee in his daily tasks at work, in a way that he can improve performance and have the possibility to grow inside the company.
Continuous staff training and development therefore provides many benefits to the individual and the business, helping your company to continue running efficiently and effectively leading to enhanced productivity. However, continuous planned training is well worth the investment because building up the skills within the business will effectively improve your company’s bottom line.
A business should never stand still and so nor should the development of your staff, who are the key asset in driving your business forward and should therefore be made a priority. With a quality-training plan in place, you will also see your return on investment within your balance sheet!
Why you should invest in the continuous training and development of your staff.
Here are a few reasons you should be investing in the continuous training and development of your staff.
- Bridge skill gaps and advance staff skills
With continuous training and development, a business can more easily bridge skill gaps within its workforce, build upon, and improve these skills to provide much more benefit to the business. Staff that know more can bring more to the table, and your business will reap the rewards.
- Increase job satisfaction levels
Continuous staff training and development can have a much higher sense of job satisfaction for your staff, which can improve their motivation towards their work. This reduces employee turnover and increases productivity, which directly improves the profitability. It also prevents competitors from taking away your best employees by offering training incentives.
- Keep up with industry changes
Industries are constantly changing and so it is important for a business to develop to avoid being left behind, which can be achieved through regular training, by making sure your staff’s skills and knowledge are up-to-date.
- Stay ahead of competitors
Standing still can kill your business, so by making sure your staff are constantly advancing, you will continue to move forward are remain competitive within the marketplace.
- Provide internal promotion opportunities
Employing new staff involves high recruitment costs and hiring fees. In addition, the speed to productivity of new hire can have a negative impact on business productivity. However, with continuous training, your existing staff can become more eligible for internal promotions. Unlike new staff, you can guarantee they have a complete knowledge of your business; the correct skill set and are people that you know and trust; and the speed to productivity in new levels is rewarding for the business.
- Attract good new talent
Continuous training and development of staff may have the ability to attract better talent to the business, as this gives the business a good image and is a key feature many people look for within their job search.
In summary, continuous staff training and development is important not just to employee growth and motivation, but it also affects the success of your business. Therefore, staff training should not be seen as a one-off exception, but as a regular necessity, to help fill skill gaps and keep the business moving forward successfully.