Training Your Employees Will Save You Money Guide, Employment Advice
How Training Your Employees Will Save You Money
23 June 2020
Training Employees Saves Money
When running a business, there are many costs and expenses that you need to manage, from rent and facilities costs to staff wages and training. As many businesses are struggling at the moment, training may seem like an optional expense that they cannot afford.
However, this is a false economy when you consider the ways that training your employs gives you high returns on your investment, and in fact saves your business money in the long run.
What is staff training?
Before we dive into the benefits of staff training and how this can save you money, let’s take a look at the different types of staff training available. When it comes to training your employees, this can range from a one-day course to certifications and degrees that involve years of study. Training can also be conducted in-house by your own team, by external consultants who visit your site, or through external institutions. It can be technical, academic, skills-based or cultural training, for example training to improve organisational culture.
For employees wondering how to become a gas engineer, for example, they will need to complete a recognised certification. Even for trades like this which have traditionally been trained “on the job” under an apprenticeship, there are now fast-track managed learning programs available that you can support your staff to do. This allows your staff to learn new skills that they can apply to their work and support your business.
Trained Employees Perform Better
By training your employees you are investing in them. Well-trained employees will be more productive, perform better, and deliver work of a higher value. Businesses find that the more they invest in training, the more productivity increases. This will deliver more opportunities for your business and potentially more revenue and increased profit margins.
Better-trained employees will perform better in a range of areas. They will have technical skills that allow them to do their core work better and more efficiently. Training also allows employees to develop a range of other skills that can help your business on a variety of levels, from strategic thinking to conflict resolution.
Trained Staff Help you Retain Customers
Better trained staff perform better: this means that they will also deliver a higher level of customer service. By providing better service to your customers you are giving them more value, which will make them more loyal to your business. This in turn helps you to retain customers, and therefore saves your business money. Marketing to new customers and convincing them to make their first purchase with you is much more costly than securing repeat business from existing customers.
Training Improves Employee Retention
For many businesses, one of their biggest costs involves hiring new employees. Every time you need to bring a new employee on board this involves recruitment costs and training costs, not to mention lost productivity and output during the period between when your old team member leaves and the new hire is up to speed.
Retaining your employees, particularly your best employees, can therefore save your business greatly both in terms of expenses and lost revenue. Properly training your employees means they are feel confident and comfortable in their work, as well as happy that they are pursuing professional development. This will not only make them better workers, it will also help you to retain them. Training your existing employees is a lot more cost effective than continually training new ones.
Training Minimises Mistakes
Untrained or undertrained employees make mistakes: mistakes that can cost your business time, money and customers. Businesses can lose thousands or even millions dollars a year due to mistakes that could have been avoided with better staff training.
This is particularly important as your business grows and scales. Business growth means that your employees may need to perform new tasks or tasks at a higher level in order to adapt to your business’ evolving needs. When this happens it is important that you match employee training with your business’ new needs and demands in order to avoid costly mistakes.
Training Addresses Weaknesses in your Team
Training is vital to address weaknesses at both an individual and team level. Most employees will inevitably have their weaknesses. Helping them to fill these gaps will not only assist with their professional development, but also make them better employees.
Similarly, small businesses in particular often have gaps in their collective skills base. Plugging these gaps and building your in-house tool kit by training existing employees is much cheaper than hiring new staff specifically for these skills.
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