According to a report by Training Magazine, companies in the U.S. spend an average of $4.5 billion on training and development programs for employees. The reason behind this is simple, organizations now have realized the importance of employee training and development.
The general notion of employee training has taken a shift, and organizations are now more eager to spend on employee training and development. The training is not limited to the traditional approach (training at the onboarding phase or right after hiring) anymore. Implementation of employee training and development is now critical for every member of the organization irrespective of their role and age.
Employee training and development generally implies a program that helps employees acquire knowledge and skills to improve their job performance and also their further career growth. This helps organizations to form a skilled workforce that is motivated, ready to face challenges and are updated with the newest technology to thrive in this rapidly evolving environment.
Here are some statistics on employee training and development
87% of millennials claim that professional growth and career development are very important to them. (Gallup)
40% of employees leave their jobs within the first year due to poor training. (go2hr)
74% of the employees feel that they are not reaching their full potential. (The learning Wave)
68% of Workers Claim That Training and Development Is the Most Important Company Policy (Clear Company)
Companies that invest in employee training enjoy 24% higher profits versus the companies that don’t. (HuffPost)
The above stats reveals undeniable insights on employee training and development. Let us further understand more about its importance.
The 5 Reasons To Employee Training And Development
1. Employee Retention:
Losing employees costs time and money. It costs much more than recruiting and onboarding new talent.
Investing in employee training and development programs helps you cultivate, retain and attract top talent, reducing turnover and hiring costs. When team members feel your company is investing in their careers, they are more likely to stay.
When organizations provide employees with training program they boost employee loyalty and their job satisfaction. Millennials now give much priority in their career growth and they do not want to get associated in a stagnant environment that does not provide or encourages training and development.
Related article: The 20 Best Employee Retention Strategies
2. Enhance Employer Branding:
Organizations that provide training programs enjoy a good employer branding. Candidates are more interested in working in an environment that is up-to-date with industry standards. Therefore, an organization that provides employee training and development programs attracts more talent.
Did you know that Amazon provides an intensive, month-long training and leadership program prior to hire? Amazon prepays 95% of tuition for employees at fulfillment centers to take courses in in-demand fields. A “Virtual Contact Center” trains employees to work from home.
Amazon understands that to be successful in this rapidly evolving environment, it is imperative to promote employee training and development.
Related article: Employer Branding: What, How and Everything in Between
3. Employee Engagement:
According to Gallup, only 13% of employees worldwide are engaged.
Employee engagement is the extent to which, employees feel passionate about their job. It is their commitment and dedication to their organization to work with high enthusiasm and energy. But to make the employees engaged, organizations must do the needful and carve a path for them where they can thrive.
Investing in employee training and development program is one of those aspects.
Related article: Employee Engagement-The Basics and Benefits
4. Employee Productivity:
Every other month technology is bringing in new information and software in the market. To keep up with it employees must adapt themselves with the changes. Learning new skills and developing new ideas takes time and energy. Also, you cannot expect your employees to learn those on their own.
Therefore, training the employees to learn new skills and knowledge will only help you in the long run. To bring productivity and innovation, you must provide the right employee learning and developing platforms. This boosts their and acts as a motivation that encourages them to perform much better than before and contribute to the organization’s success.
Related article: 8 Ways To Increase Employee Productivity In The Workplace
5. Develop a positive attitude and employee morale:
Attitude indicates the feelings, outlook, reaction and beliefs of the employee towards others. It has a great impact on an employee’s morale, motivation, loyalty, commitment, and satisfaction.
Lack of proper training and development programs hinder their career growth. Their skills become limited with time and they lose interest in what they do.
When you offer a training and development program, you show that you are invested in your employees’ growth and well-being. This helps them develop a positive attitude towards the organization. More than that it gives them a sense of security and loyalty towards the organization.
Related article: 8 Ways To Improve Employee Morale in Your Workplace
An investment in knowledge always pays the best interest.”―Benjamin Franklin
In a nutshell, investing in employee training and development program benefits the employees, their performance and the organization as a whole. It keeps employees engage, happy, satisfied and they give more effort towards their work.