More Than Compliance: 4 Benefits of Great Employee Training
Does your company offer employee training? If your organization skipped on creating training resources to save money, it might be costing you a pretty penny. (A lot of them, actually).
Here are the top four ways that training boosts your company’s success, customer satisfaction, and bottom line.
1. Cross-Training Helps Your Employees to Work Better Together
Sometimes it’s tough for each of us to get the big picture — especially when we’re concentrating on doing the best we can in our individual roles. But, workplace tension doesn’t just make for an uncomfortable environment. Not getting along most likely means your employees likely aren’t working well together either.
And that loss in productivity? It might take a little time, but gaps in collaboration will most certainly hit your business right in the pocketbook.
Cross-training employees for various departments gives them the tools they need to communicate effectively with those teams by:
- Creating a consistent company culture
- Learning the lingo used in each department
- Arming employees with enough information to offer help across teams
And, because employees are 30% more likely to stay with a company that offers the chance to achieve their career goals, cross-training employees increases the chance that they’ll stick around.
Speaking of protecting your investment in “human capital”…
2. Ongoing Employee Training Helps Reduce Turnover — and Overhead
Hiring new employees gets expensive. Although hiring costs vary by industry and region, a study by Center for American Progress shows replacing an employee can cost six to nine months of the salary for that role.
If those numbers seem high, remember onboarding an employee costs more than just their salary. In their study, CAPS suggests any accurate estimate should also consider:
- The cost and man-hours required to advertise, interview, screen, and hire for the role.
- The time lost by management during new hire onboarding and training.
- The loss of productivity as new hires can take from one to two years to reach the productivity of an existing employee.
- The cost of performance errors and potential for lowered customer satisfaction as new hires are often less adept at solving problems than their more experienced colleagues.
Here’s where training comes in: New hires are 42% more likely to stay at a company when they receive the training needed to do their job properly.
Considering the cost of hiring and training employees, it’s no surprise that the world’s best-performing companies invest in ongoing employee training.
3. Employee Training is also Key to Customer Retention
The quality of your service can make the difference between creating a loyal customer — or driving someone to your competition.
Case in point: Having recently bought a house, we’ve started making frequent trips to the home improvement store. Since there’s a Home Depot right next to our house, going there first was a no-brainer.
However, after three trips to our local Home Depot, we’re switching to Lowe’s. Here’s why…
The first trip, we spent 20 minutes looking for an associate to even ask a question. Trips number two and three were ordered online for store pick-up. Except nothing was ready when we arrived. (And gathering four items took employees an hour.)
The fourth trip, we had to explain the difference between a flathead and Phillips screwdriver. At that point, we decided to try somewhere else next time.
At Lowe’s, we noticed an immediate difference. Associates were always easily found and eager to answer questions. Plus, each person we spoke with was super knowledgeable about everything in their section. So much so, that we leaned on their advice to pick between products and got extra tips for installing and usage.
The point being that these days, your potential customers have plenty of options — whether online or brick and mortar. You probably spend A LOT of money and effort trying to stay ahead of the other guys. Why not also arm your employees with the training and skills to ensure customers stick around?
4. Data Shows that Employee Training Makes a Big Difference in Company Success
According to a survey by IBM, 84% of the employees at those companies ranked in the top tier of their industry report feeling satisfied with the training they receive to do their jobs. And, the worst-performing companies? Only 16% of their employees said they were exposed to the knowledge and resources to deliver what was expected.
The amount of training does not need to be massive. When preparing for a role, employees who received 40 hours of training met their objectives and goals three times as often as those who received 30 hours of training or less.
Are you ready to invest in training, but aren’t sure which style of content is best for your industry?
Check out our article exploring Video Training vs. Traditional Training. Or, click the “Schedule a Demo” button on our Home Page to chat with a member of our sales team today.