There won't be a long introduction here. You have a question and we have answers. We will simply explain why it is profitable for a business to train its employees (and regardless of whether the training is carried out in-company or through the involvement of external resources). Read on.

1. The factor of intangible motivation

It's no secret that a modern employee can no longer be lured into a company only with a good salary (which, moreover, fluctuates rather weakly in the market for most industries). In the arsenal of employers, there are more and more trump cards for rewarding employees outside the wage framework: here there are offices with coffee, cookies, air hockey and a trampoline, and fitness and voluntary medical insurance with dentistry and massage of all parts of the body.

Exactly the same factor of non-material motivation is the educational products that the company provides to its employees. At the same time, the organisational basis of this process can be different: in some organisations, certain educational products are purchased/produced for employees, and the employee is trained in what was purchased for him, and in others, the personnel are given the right to choose from several educational courses.

The motivational component here is that the employee is provided with benefits in the form of educational content on a free basis. Thus, personnel compensation includes one more bonus - training and advanced training at the expense of the company, which for many specialists serves as a significant competitive advantage when prioritising potential jobs.

2. Formation of a "loyalty anchor"

The human feeling of gratitude, coupled with proximity to a source of useful knowledge and skills, can work wonders in HR. Practice shows that companies that invest in employee training, reduce the staff turnover rate by values ​​from 30% to two times, depending on the industry.

This principle works very simply. As you know, people respond to incentives, and if an organisation continuously organises training for its employees in relevant and useful skills, then it becomes unprofitable for them to leave the company, which provides them with up-to-date relevant knowledge. Moreover, if success in passing certain courses and certifications smoothly creeps into the composition of key performance indicators of personnel, then many employees suddenly become excellent students - and, of course, stay in the company a little longer than they could without educational "goodies".

Even if a specialist who has accumulated certain skills, has a desire to leave a company for a more promising or highly paid position, in the vast majority of cases he will look for an organisation where personnel training and development is at least as good as at this place of work.

3.  Improving the professionalism of the staff

Instead of sometimes very deservedly accusing your staff of incompetence, it is much more expedient to correct this situation, thereby showing yourself as a real leader. The easiest way to do this is by training an employee, spending a certain amount of money/time / both on improving certain skills of their wards.

Often, the professional development of their employees can be carried out almost without interrupting the work process by organising online training, including both webinars and information blocks, and attestation with certification. Fortunately, the modern infrastructure of online education has developed so much in recent years that it provides a wide variety of educational projects for every taste and wallet. You can find everything. From online courses of a foreign language to good quality online construction courses. The situation has already reached the point that many companies that specialise in the provision of professional services to businesses are starting their own training centres and train not only their employees but also everyone from outside, including corporate clients.

4. Development of the employer brand

As the basics of strategic marketing teach us, an employer's brand is a discourse that accompanies a given employer in a public space. At the same time, many mistakenly believe that this term only refers to competition in the struggle for talented specialists. But this mistake is tantamount to thinking that the whole Europe is just France: the employer's brand has many manifestations - reputation among customers, weight and authority in the business world, presence in the media, and a number of other aspects.

The development and training of personnel are most directly related to the employer's brand: by encouraging and satisfying the desire of its employees for professional growth, the company significantly strengthens its brand. Such an organisation immediately acquires a public aura of a friendly, responsible and strategically thinking team, to which you want to join and with which you want to interact.

Conclusion

If you were not sure that you needed employee training, or you were against it, we hope this text opened your eyes. Now you know how important it is for your employees to improve their skills and knowledge. Try to provide them with the best possible training. Trust us, it will pay off.

Mike is an Australian business consulting specialist. He’s working with companies that outsource their IT maintenance. He often writes about technology, business and marketing and is a regular contributor on several websites.

Guest Contributor: Mike Parsons