According to the World Economic Forum, more than half of all employees will require significant reskilling and upskilling by 2025. But while many companies understand the importance of employee training, implementation remains a challenge. Nationally, less than 10% of eligible employees access tuition reimbursement programs. CFTEA in-house courses allow organizations to infuse their culture, policies, procedures, and unique situations into reskilling and upskilling employees.
Employers who invest in staff development help their employees hone strengths and grow skills, which better equips them for their current roles. This adds more value to the work they do and directly benefits your business.
Perhaps more impactful, though, is the value employees and job seekers place on development opportunities when considering offers. Making learning and development a focus of your company culture helps improve employee engagement, increase retention and attract elite candidates.
Look at these five benefits of training employees in today’s workplace whether you’re working remotely, in-person, or a mix of both.
1. Reduce Employee Turnover
Employee turnover can be highly disruptive–and costly. The average cost of replacing an employee ranges from about one-third to twice their annual salary, depending on the level and complexity of their position. Doing so can also take months or more.
Offering employee training is a straightforward and effective way to reduce turnover. According to LinkedIn Learning, 94% of employees say they would stay at a company longer if it invested in their development.
2. Improve Employee Engagement
Employee engagement remains a moving target for most organizations, but it’s critical for company outcomes. Gallup found that the companies with the highest engagement are 23% more profitable than those with the lowest engagement. And since only 35% of American employees say they are engaged with their jobs, there’s plenty of room for improvement.
Since LinkedIn Learning reports that employees who feel they have room to learn and grow at their companies are 3.5 times more likely to be engaged, employee training opportunities present an ideal tool for increasing both engagement and profit.
3. Gain a Recruitment Tool
Most job seekers are aware that the world of work is changing fast, and they’re looking for roles where they can grow. A Citrix study found 82% of employees believe they will need to continue to develop new skills at least once a year to remain competitive in the marketplace, so employee training opportunities can be a powerful recruitment tool. And since employees with access to training are more likely to be engaged, the overall public perception of the company is likely to improve, too.
4. Build a Talent Pipeline
Employee turnover is a fact of life. But when employees with essential skills depart, that can leave unprepared organizations in the lurch. Organizations can prevent disruptions by using targeted training to create career paths for their employees. Ideally, employers and managers partner to develop these paths, which include clear milestones and objectives for skills acquisition and promotion. In addition to its role in succession planning, the career pathing process also increases employee engagement with the company and their roles.
5. Enhance Management
Poor management is one of the biggest drags on a company’s bottom line—according to Gallup, ineffective leaders cost the global economy over $7 billion each year. Given their impact on the company, the importance of employee training is only increased for managers. Training managers to communicate effectively, develop their employees, think strategically, and react to challenges with flexibility can drastically increase both team performance and employee satisfaction.
Between inflation, the Great Resignation, and major global supply chain disruptions, companies have plenty of issues to tackle. Nevertheless, it’s essential to not overlook the importance of employee training amid the crush of competing priorities. Organizations that understand why employee training is important and build effective training programs will not only address today’s challenges, but also those of tomorrow.