fm theThrivingSmallbusiness.com 31 July 13 enhanced by Peter/CXO Wiz4biz
Employee training is something that many organizations struggle with. There are issues with adequate resources for determining training needs, doing the training & the down time associated with pulling employees out of their job for a period of time to learn new skills.
Example. I worked for a large nonprofit who communicated to employees that they “could not guarantee employment, but could guarantee employability”. What this meant was, they would invest in employees to keep their skills current & marketable. They offered different levels of training and employees who had an interest in learning were able to take advantage of continuing education classes that were either facilitated internally or taken outside of the organization and reimbursed.
And speaking of Reimbursement, in addition to continuing education, some organizations offer tuition-reimbursement to help offset college costs for adults in pursuit of undergraduate or advanced degrees. Tuition reimbursement is considered a great benefit (perk) and is also used by organizations (such as a Startup) as a recruitment & retention tool. Employees feel valued when organizations invest in them. Five
(5) Benefits of Employee Training
1. Recruitment. When prospective employees assess an organization to determine if it is a good fit, they look at the Employee Benefit Package. Tuition Reimbursement as a benefit is attractive to employees who endeavor to continue their education, but lack the resources to do so. This can be a determining factor in an employee accepting an (at risk) job offer with an unknown entity of a Startup.
2. Business Advantage. The world is changing quickly and businesses need to keep their employee skills current in order to be competitive. Keeping up with changing software programs, technology changes, customer service skills or leadership trends are examples of competitive advantages organizations can have with a well-trained work force.
3. Employee Morale. Let’s face it, most people stay satisfied in their job for a long time – while the challenge is there, then look for growth opportunities. Employees who continually develop their professional skills or pursue higher education, are more hopeful that there will be career advancement opportunities in their future. This can also help employees remain positive and contribute to the vision of the organization.
4. Employee Contributions. I have found that employees who are in school often bring back what they learn to the organization and apply learned concepts to the job. This offers value to the organization and provides for real life application for the student. It is definitely a “win-win” for both.
5. Employee Retention. Employees typically stay with an organization that is footing the bill for their education. Some organizations require students to stay with the organization for a period of time after graduation to be eligible for tuition reimbursement. This can hold an employee with the organization a little longer, but can also offer the wrong motivation for staying. This kind of policy should be considered carefully. When times get tough, training budgets are usually one of the first areas that get slashed. This is an unfortunate phenomenon considering the impact it has on an organization’s recruitment, retention and employee morale.
6. Payback. Extensive studies have found that the payback from training is worth at least 2x the investment in preparation, execution & employee time. Many studies found companies where the payback when over 100x the investment.
7. Caring is shown when you invest in training your people. It makes them feel loyalty and they are more diligent in their work and usually more creative – knowing they are contributing to an organization that cares about them.
Comments: Is there anything you can add to the Benefits of Training that you experienced?