In retail, nothing underscores the importance of training and continuous training of employees than the following conversations between a CEO and COO:
COO to CEO: “Sir, what if we train them and they go?”
CEO to COO: “What if we do not train them and they stay”?
CEO to COO: What’s worse than training your workers and losing them?
COO to CEO: Not training them and keeping them
Why Retail Training Is So Important?
Unfortunately, employee training and development effort is an often overlooked part of employee investment, and it’s more important to workers than employers probably realize.
Retail businesses must recognize that not only is the human capital of their employees a major asset, it is also a depreciating asset that needs continuing investment. Keeping worker skills up to date keeps a company in the running.
However, a common oversight retail business leaders make is to stop investing in people after the recruiting, interviewing, and hiring is complete.
Retail business leaders must understand that their greatest asset is their employees and make a point to invest in their training and development. This is especially so because your employees cannot give what they don’t have and you do not have the right to demand from employees what you have not provided in them!
Also, untrained employees who feel underutilized are more likely to become frustrated with their job and will be less loyal to their company. This translates into reduced productivity, more mistakes, and failure to meet minimum standards.
A common misconception is that providing training will prompt employees to move on to other companies, but this isn’t the case. Properly trained employees who feel that they are valued are actually happier in their jobs.
In addition, the level of waste resulting from untrained employee is huge. Unfortunately, this is often not a measured index and as such overlooked. This is partly accountable for why training is seen as an expense and not as an investment. This is training biggest challenge! Untrained employees will, inevitably, lack the knowledge to use company resources properly, which will lead to waste, in a service industry; lack of knowledge about procedures will affect customer interaction and retention. Because of this, your employees, your company, and your clients will all suffer.
Need more proof that employee training and development is essential to your retail business’s success? Check out these compelling statistics from Shift Learning:
- According to an IBM study, employees who feel they cannot develop in the company and fulfil their career goals are 12 times more likely to leave the company.
- Rehiring costs represent about 12% of a company’s expenses with up to 40% for businesses that have a high turnover rate
- 70% of organizations say that staff turnover has a negative financial impact (due to recruiting, hiring, and training costs).
- Companies that put an emphasis on employee development make a median revenue of $169,100 per employee while companies that don’t only make $82,800.
- As per HR Magazine, companies that invest $1,500 on training per employee realize an average of 24% more profit than companies who invest less.
- A study of more than 3100 US workplaces revealed that a 10% increase in educational development produced an 8.6 gain in productivity.
- Overall, studies indicate that when companies invest in workplace learning, they enjoy higher net sales per employee and higher gross profits per employee.
Ironically, the biggest inhibitor to putting a training program in place is the perception that it will take too much time…there is no other investment that you can make that will do more to improve productivity in your company.
A company is only as good as its employees, and those employees are really only as good as the resources put into them.
There is no question that businesses improve when their employees are continually empowered through training and development. Not only does employee progression increase productivity and profits for organizations, but it also plays a huge role in employee motivation and retention…because a happy employee is also a loyal one!
When employees receive the proper retail training, they will develop the confidence and skills that will help them improve conversion rates and create exceptional customer experiences that are downright excellently worthy. This will give your retail business the competitive edge you need to achieve your organizational goals and realize better profits.
Start investing in your people today and you will be more than happy you did!