As competitive pressures continue to increase for businesses across verticals and geographies, the need to find that edge grows as well. We’re living in a world market that continues to feel the after-effects of a global pandemic. By now, we’re familiar with the “Great Resignation,” and “Quiet Quitting.” These labor phenomena create an imperative. That is, you need an environment where your employees not only thrive but enjoy the thriving. Consequently, this is the new critical success factor. One of the simplest ways to build a successful corporate culture is to invest in training opportunities for your team.
What Can Investing in Training Provide?
Companies who make an investment in training their employees using third-party resources versus those companies who do not spend additional money training their employees can expect these returns:
- Retention: According to a study by the Aberdeen Group, companies that invest in employee training have a 31% lower voluntary turnover rate than those that do not. Employees who feel that their company is investing in their development are more likely to stay with the company. This can save the company money on recruiting and training costs.
- Job satisfaction: According to the Society for Human Resource Management (SHRM), employees who receive training are more likely to be satisfied with their jobs than those who do not. This is in line with retention statistics. Here’s how: Satisfied employees spend less time wondering what color the grass is on the other side of the fence and more time watering the grass under their feet.
- Productivity: Per the American Society for Training and Development (ASTD), companies that invest in employee training see a 22% increase in productivity. Employees who are trained in new skills are more productive. This can lead to increased sales, decreased costs, and improved customer service. It also creates an environment where individuals are more likely to come up with new ideas and solutions, building on your competitive edge.
- Customer satisfaction: This element needs no study other than your own empirical observation. Happy employees create more engaging customer interactions. These in turn create happier customers. Happy customers are repeat customers. Repeat customers have great lifetime value and higher AOV.
Simply hiring capable people isn’t enough. Making an overt effort to train, develop, and motivate these people is an incredibly vital element to any company’s effort to find, maintain, and enhance that competitive edge.
What Are Your Next Steps?
Not sure how to get started? Here are a few tips to start the conversation internally:
- Work with your HR department to understand current organizational needs. Use executive leadership to map out how those needs may change in the coming year.
- Gain executive support and sponsorship to survey your team with a skills-and-needs assessment.
- Use the information you gather in your surveying efforts to help you understand the current skills inventory. Also, use it to know what your team needs (and wants) to learn to better perform in their roles (and cross-train to prepare for their next one).
Still have questions? These are the conversations we have on a daily basis with companies like yours.
At NVSI, we have made it our business to help yours thrive. Contact us today and let’s talk.