According to the association for talent development (ATD), companies that offer comprehensive training programs have 218% higher income per employee than companies without formalized training. But it doesn’t stop there. These companies also enjoy a 24% higher profit margin than those who spend less on training. It would seem that continuing to invest in training and development, even when there are economic downturns, is the smart play.
At the root of these fantastic results is increased employee productivity, which in turn is driven by the skills advancements made possible through employee training and development. As it turns out, training is one of the most effective things that a company can do to increase productivity. For example, in a study conducted by the National Centre on the Educational Quality of the Workforce (EQW), increases in workforce education level were far more effective at increasing productivity than increases in the value of equipment (a 10% increase in both produced a productivity gain of 8.6% for education vs. a mere 3.4% increase for upgraded equipment).
It’s common knowledge that attracting and retaining good employees is vital to the health of any ongoing business. Also, few would dispute the fact that employees (as a general rule) want to do a good job. Putting these two ideas together, it becomes quickly apparent that for companies to thrive, they need to do whatever is necessary to help employees do well in their assignments, or risk losing them.
Employers need to realize how common it is for employees to leave if they don’t receive the necessary training to do well in their positions. Research shows that a full 40% of employees who don’t receive the necessary job training to become effective will leave their positions within the first year.
Not only that but to keep them long-term, companies must also offer continuing development and opportunities for advancement. In a Skillsoft survey from the UK, roughly two-thirds of the workers stated that they felt workplace training should continue throughout their career, regardless of their seniority.