The Bottom Line Value of Training
Whether we like it or not, all companies operate in a global business climate today. This is something of a curate’s egg in that it provides tremendous opportunity from a commercial perspective, but also requires virtually every company within this marketplace to modernize.
Thus, with so much competition on their radar, organizations are continually searching for ways to improve their margins and increase productivity. One of the best ways to achieve this is to improve staff proficiency, performance and effectiveness. This can be readily achieved by engaging in effective staff training and skills development. Too often these areas can be viewed as non-essential and can be subject to budget cuts in tough time, but actually this is truly false economics, as effective staff training can effectively make a company more money.
Many companies simply fail to grasp the benefits that improvements in their employees’ skills portfolio can deliver to their business. In addition, they also fail to recognize the numerous areas of their business that training can directly impact on positively. These include the following:
- Productivity can be significantly improved;
- Customer satisfaction can be greatly improved;
- Employee morale and the ability to retain staff can be affected positively;
- Staff turnover can decrease significantly;
- Revenue can be increase;
- Bandwidth and server load can be reduced.
In fact many corporations, businesses and organizations in fact greatly under-estimate the cost of not training their staff effectively.
For example, The American Society for Training and Development found in a 2003 survey that 41% of employees at companies with poor training program intend to leave the organization within a year, as opposed to 12% at companies with efficient training and development programs. And then in relation to this, the cost of replacing skilled employees within the United States can range from $75,000 to $450,000 depending on the skills set involved. Just recruiting a professional candidate for a position will cost in the region of $18,000 in the United States, according to IBM training and development.
It’s not merely the costs involved with failing to train properly, the benefits associated with effective training are also under-estimated. For example, a report carried out by IDC entitled ‘Worldwide IT Education and Training 2008 Vendor Analysis’ found that 60% of managers believe that the skill of their teams is the most important factor in their success, while HR Magazine found that companies within the top quarter in training expenditure per employee per year actually averaged nearly 25% superior profit margins than those who are more frugal in this department.
Thus, organizations today simply cannot under-estimate the importance and emphasis that they should place on training. And given that online training has consistently been show to deliver more effective training at a much cheaper price than classroom-based training, it makes sense to look for an Internet-based training service provider.
Contact eLeaP to discuss any of these suggestions or even custom requirements you might have. We try to be as flexible as possible. Call us 1-877-624-7226 or email firstname.lastname@example.org