Training can often be overlooked by many businesses as it is frequently viewed as an extra expense rather than an investment. Seeing employee training as an option instead of a necessity is a perspective that can prove costly, not only to profits in the interim but for the continuing progress and success of staff. Millennial workers now account for over 25% of the workforce and studies have shown that training and development in the workplace is their main priority when looking for a job – can your business afford NOT to run a training programme?
The economic downturn that took place over recent years is one of the main causes of training being neglected in favour of keeping costs low. The most important asset of any business is the staff and it is important that employers make the most of the staff they have by providing opportunities for growth and development. The numbers don’t lie - these stats will demonstrate exactly why every business should be following a training programme.
20% of Employees Are Currently Looking for a New Job
That’s a fifth of your workforce that are possibly looking for work with another organisation, and half of those employees have actually applied for a new job in the last 6 months. Happy, focused workers are more likely to stay with their employers. Providing good quality training can help create a sense of loyalty, which in turn leads to improved staff retention and diminishes the need for pricey recruitment services. Disgruntled employees are generally frustrated, less engaged and more disruptive. 88% of workers have noted that there is nothing wrong with staying in the same job for long periods of time as long as they are given the opportunity to develop.
40% of those who Receive Poor Job Training Leave Within 12 Months
It costs over £30,000 to replace a staff member in the workplace, so keeping employee turnover low should be a priority. Offering development opportunities therefore works out as a cost effective way of maintaining staff. Investing in your employees helps to show them their value and expertise, which then hopefully translates to a healthy retention rate. You’re also much more likely to attract new employees if you can present them with a clear training plan.
76% of Employees want Opportunities for Career Growth
Most businesses recognise the need for non-financial methods of motivation in the workplace and the prospect of career growth is one of the biggest. Employees are searching for skills that will help them within their chosen career path, so investing in training and developing existing skills will pay off in the long run.
Companies with Training Programmes have a 24% Higher Profit Margin
Proof that employee training can also benefit your company! As well as finding a higher profit margin, the study also found that organisations with training programmes enjoyed a higher income per employee (an impressive 218%) and a 6% higher shareholder return. This shows that career development is a recognisable factor in getting the most value from employees – both literally and figuratively speaking!
20% of Employers Say there is a Significant Skills Gap
The dawn of the digital age has brought a disconnect between educational institutions and the workplace, with employers finding a substantial gap in skills needed to perform a job and the skills that employees possess. It can be argued that traditional education routes such as colleges and universities do not prepare graduates for a competitive and dynamic work environment. We live in a world in which many of today’s jobs didn’t exist 25 years ago. How can you adequately prepare students for jobs that may not exist at the moment? There really is no way of doing this. Instead, continuing education becomes a necessity. Schooling is no longer a concept that happens just between the ages of 4 to 18 – workplaces need to evolve to make sure that staff are given the tools to perform their roles successfully and employees need to continue their education throughout their entire lives in order to stay relevant.
A skills gap also exists between generations – over 12 million people in the UK do not have the skills to prosper in the digital era. That translates to almost a quarter of the UK population who are missing out because of digital exclusion. Older workers face more of a challenge to stay current in this environment within organisations that don’t have an inclusive training plan.
92% of People Say Their Workplace Training was Successful
Successful training equals happy employees, which in turn leads to a more successful and skilled workforce. Even the most dedicated and experienced employees will eventually start to forget things they learned in the past - retraining should not be seen as impractical as it can lead to better employee engagement. Similarly, cross-training can prove to be a morale-booster; training employees for different jobs alleviates boredom at work because they’re not resigned to performing the same tasks each day, whilst also helping to protect your business if there are staff absences or if other departments are busy.
Training is becoming a larger priority for employers, but there is still a lot of room for improvement. The young workers of today will become the leaders of tomorrow, so it is imperative that training is conducted throughout the entire company structure, not just the lower or upper ranks.
The median annual spend on training and development for a full-time employee in the UK is £300, and future budget predictions suggest that 45% of employers expect their training budgets will decrease over the next 12 months. This means that companies will have to improve their training efficiency. It is estimated that 98% of organisations used eLearning as part of their overall learning strategy in 2015. It makes sense that organisations looking to keep training costs low have chosen eLearning as a cost and time-effective, flexible solution for staff.
It’s a different story in the US - training and development spend has risen by 15% in the last year alone, and the average spend on employee learning is $1208 and steadily rising. It is important to take into account that each industry is unique in the type of training needed per employee. Larger organisations may be able to spend less per employee because the cost to develop and sustain the required training is spread among more members of staff.
It is essential for businesses to remember that employees are their #1 resource, so investing in their training is a healthy investment into future company success.
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