Employee training is an effective way to teach new employees and develop existing workers. However, employers may be concerned about related expenses, as employee training has been estimated to cost around $1,888 per employee for companies with fewer than 500 workers.
That’s quite a bit of money, but the cost of training can be well worth the investment. Here are three big reasons why a commitment to employee training is a great financial decision for your business.
Training Keeps Employees Engaged
Employees want to feel like their boss cares for their future. Research-based consulting company Gallup reports that 87 percent of millennials find professional or career growth and development opportunities important for their jobs. 69 percent of non-millennials agreed.
Investing in employee development can help advance your employees and show them that you value their future and contributions to your business and improve engagement. According to Gallup, improved employee engagement can have a huge impact on your business. Gallup shared the difference between companies with the best and worst rates of employee engagement. The top companies enjoyed the following benefits:
- 37 percent less absenteeism
- 48 percent fewer safety incidents
- 41 percent fewer quality defects
- 21 percent greater productivity
- 22 percent greater profitability
Training Lowers Staff Turnover
Another benefit of engaging your workforce with training is that it can help you retain good employees. The initial onboarding experience can have a major impact on whether an employee stays with a company or heads off for a new opportunity.
The Society of Human Resource Management (SHRM) reports that “newly hired employees are 58 percent more likely to still be at the company three years later if they had completed a structured onboarding process.” That’s a huge difference since a lower turnover rate does more than just keep familiar faces around the office. Performance-based training organization Dale Carnegie reports that businesses in the U.S. collectively lose around $11 billion each year due to employee turnover.
Training Develops Employees for the Present and the Future
Training can better prepare your employees for their tasks, allowing them to be more efficient and effective. Ongoing training and development also allows you to groom your employees for bigger and better roles.
By developing talent internally, you can promote an employee who already knows the ins and outs of your business. That allows you to avoid some extra hiring costs, as SHRM reports that “external hires earn 18 percent to 20 percent more than existing employees promoted to similar positions.”
Investing in Your Employees and Your Future
The right employees can make a major difference for your business. We can help you invest in your current and future workers through employee training and recruiting services. Contact us today to talk to one of our experts about how we can help you recruit, train, and retain your employees and keep them engaged and effective.