How to Leverage Training Programs as a Company Benefit and Impact Your Bottom line.
Employee training programs offered by the employer are not only key methods to improving the effectiveness, success, productivity and retention of your current workforce, but they also serve as an essential addition to your benefits package to attract future employees. And it’s not just about retention. Good employee training and development programs can directly impact your bottom line.
MILLENIALS IN THE WORKFORCE
Did you know that more than one-in-three American labor force participants (35%) are Millennials, making them the largest generation in the U.S. labor force, according to a Pew Research Center analysis of U.S. Census Bureau data? And Millennials not only embrace training programs they expect training to be offered.
As the battle for top talent becomes more competitive, employee training and development programs are more important than ever. Hiring top talent takes time and money, and how you engage and develop that talent from the time they are on boarded makes all the difference in the world.
Consider the cost of replacing employees at varying levels:
- Entry-level employees cost 30 to 50% of their annual salary to replace
- Middle-level employees cost 150% of their annual salary to replace
- Specialized or high-level employees cost up to 400% of their annual salary to replace
TRAINING AND DEVELOPMENT CAN ALSO REDUCE:
- Inefficient use of time and materials
- Workplace accidents/injuries (reducing medical claim costs)
- Staff turnover and absenteeism
- Recruitment time and expenses
- Legal and liability claims
Chasity Dial, chief operations and human resource officer of the American Indian Health and Family Services (AIHFS), has seen first-hand the positive impact of providing employee training. "The team building event that Ulliance provided helped employees understand their own personality and work style and how to best work with each other, resulting in a more cohesive, productive work environment."
BENEFITS FOR BOTH ORGANIZATIONS AND EMPLOYEES:
- Increases morale of overall culture
- Creates a potential for increased profits
- Increases ability to adapt to change
- Employees gain skill sets allowing them to work in multiple capacities
- Improved productivity and more attention to quality standards
- Improves company reputation and profile
- Adherence to compliance standards
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The lack of a training strategy to top talent suggests that the organization has no interest in helping one meet his or her own aspirations, leading to a lack of highly motivated recruits. When employers show employees they are valued by emphasizing their career development and achievements, they are actually investing in their people.
What's Your Return on Investment and People?
CFO: "What happens if we invest in developing our people and then they leave us?” CEO: “What happens if we don't and they stay?”"Peter Baeklund, a leadership coach