How Employee Training Lead to Higher Revenue & Profits
Many companies believe in the power of employee development. By encouraging, motivating and facilitating various programs for employee training and development, organizations are able to boost their productivity, performance and even the profits.
So What Exactly Is Employee Development And How Can It Help Your Organization?
Training and development of employees by providing them with opportunities to hone their skills and other aspects of their professional careers to enable them to perform better, ideate more, and contribute via different avenues is known as employee development. While not all companies focus on employee training and development, many others set aside a percentage of their annual budget to ensure that their employees get the best possible opportunities to polish their skills, talents and personalities. Many employee survey and researches have proven that investing in your employees can help improve the business prospects of an organization.
Employee Development Is a Step Towards The Betterment Of Resources
Employees are after all, the biggest resource for any company. Facilitating various learning programs for these resources can greatly help increase employee productivity as well as the motivation in the workplace. When the employees know that the management cares enough to invest in the future of the individual along with the company, it leads to higher employee satisfaction which in turn boosts customer satisfaction, innovation and thus revenue.
In a survey conducted by the American Society of Training and Development in 1998, two organizations and their expenses for employee trainings were observed. The study revealed that the organization investing an average of $900 per employee saw 57% higher sales per individual along with 37% higher gross profit from each as well. It was then announced by the president of the society that organizations investing more in employee training are more successful and profitable as proven by tangible results.
ALSO READ : How to Get Hired through LinkedIn
Many organizations have recognized the benefits of employee training and development and now have a dedicated team of in-house or outsourced trainers who regularly conduct various employee engagement activities to enhance the performance of individuals as well as teams as a whole. These activities not only focus on improving employee performance, but also augment behavior and soft skills which go a long way in day to day tasks, particularly for those employees who directly interface with customers. The polished mannerisms, efficient techniques of operation and succinct business knowledge of the employees help to create a certain perception about the organization in the minds of a customer. For example, if you go to a retail store and the staff is unhelpful or doesn’t have enough information to resolve your queries, you may not have a very pleasant experience and may think twice about going back there. However if you visit a store where the staff has been trained in various areas and is kind, helpful and makes your entire purchase cycle easier in every possible way, you will most definitely go back with positive feedback and would wish to revisit the store.
This goes to show that the impact of training and development on employee performance does not affect the individual alone, but the entire company as a whole. When your employees are satisfied and happy, the company will run like a well oiled machine. But to ensure that all the cogs work well together, employee coaching through routine trainings is crucial to ensure the best team performance and maximized profits for the organization.
Let’s take a look at some of the benefits of employee training and development.
- The organization can choose what new skills need to be inculcated in the employees in lieu of the future growth and development plans mapped out for the company. This enables an organization to mould their employees to meet the operational needs as may be required in the future.
- Employee training in areas like workplace safety, personality development, soft skills development, technical programs etc can help boost employee morale and productivity which in turn affects the business performance.
- Training and development of employees shows them that the organization values them and is willing to invest in them. This helps to improve employee loyalty and retention which helps in savings thus impacting the revenue.
- New skill development helps them gain self confidence, boosts morale and gives them the motivation and drive to perform better and better every day.
- When they know that the organization is willing to invest in them, they are more eager to contribute to the business through improved performance.
- Regular enrichment of their skills and knowledge keeps them motivated and eager to contribute in new and innovative ways.
Suggested: CORPORATE TRAINING PROGRAMMES BY UNBOUND
Here is an interesting and insightful case studies of successful results derived from investing in employee training and development. The hospitality giant, Hyatt, is a big believer in employee development. They have created numerous initiatives to help employees grow their personalities as well as their careers. Hyatt launched a program called ‘Changing the Conversation’ to provide more everyday opportunities to their employees to propel their career advancements. As a result of this, in an industry where average employee tenure is 3.8 years, Hyatt boasts of average employee tenure of 12 years.
While training and development may seem like the easiest budget to cut, the lack of employee coaching could end up costing an organization a lot more. The best way to maximize revenue and profits is to invest in the biggest asset the company has – its employees.