Train In A Day
Understanding the business benefits of an employee training programme can sometimes be more of an art than a science.
How do you measure success?
How can you convince your colleagues to make the investment?
As a result, it can sometimes be difficult to convince management teams of the need for forma people investment.
Like any business case, we need to persuade others through demonstrating the benefits or, as salespeople would say, “What’s in it for them?”
This article highlights five major benefits of employee training:
Let’s take a look:
1. Impact on bottom line
Successful employee training delivers improvements in employee performance which, in turn, creates a better performing business and an improved bottom line.
Research conducted has suggested that, where training programmes are effective, employee productivity can increase by 230 per cent.
You may wish to highlight job roles within your organization where employee performance has improved using measurable variables that will demonstrate your business case for further investment.
By focusing your business case on the objectives of the business you will not only be preparing a persuasive proposal for the rest of your management team but will also be steering your training plans towards the areas of greatest benefit. Hence, ensuring the greatest return on investment for the project.
2. Staff retention
Want to spend more training recruiting staff?
Thought not.
Training increases staff retention which will save you money.
Instead of paying recruitment fees, re-investing in training, loss of management time why not treat your people as your number one asset?
Invest in their development and they will receive a return your investment many times over.
In some companies, training programs have reduced staff turnover by 70 per cent and led to a return on investment of 7,000 per cent.
Incredible, eh?
3. Improved quality and productivity
Training that meets both staff and employer needs can increase the quality and flexibility of a business’s services by fostering:
• accuracy and efficiency
• good work safety practices
• great customer service.
You know the benefits of quality assurance programmes. Now buy in to the benefits of employee training programmes!
Can you put a value onto a lost customer?
How about a health and safety issue?
If you wish to gain a simple but meaningful measure of employee training programmes take a look at the consequences of NOT investing in your people.
Often, we only make investment decisions when we can visualize the effects of not taking action.
If you’re not yet convinced by the benefits of training, take a look at where your company has suffered from a lack of improved skills and try calculating the TRUE cost of those incidents.
4. The flow-on effect
The benefits of training in one area can flow through to all levels of an organization.
Over time, training will boost the bottom line and reduce costs by decreasing:
• wasted time and materials
• maintenance costs of machinery and equipment
• workplace accidents, leading to lower insurance premiums
• recruitment costs through the internal promotion of skilled staff
• absenteeism.
If you take a closer look at those companies which sit within the ‘Top 100 Companies’ to work for you will notice something which runs through each of them.
You can’t measure it but successful companies have a ‘culture’ which runs throughout them.
The benefit of this culture is a happy, innovative and successful workforce.
A positive culture only comes through a respect for and an investment in your people.
Start cultivating a progressive culture within your business today through employee training programmes and other forms of people investment.
5. Remaining competitive
Businesses must continually change their work practices and infrastructure to stay competitive in a global market.
Technology, previously the main driver of competitive advantage, is progressively taking a back seat to people.
As economies become progressively service orientated, it is the development of people that is providing successful businesses with long-term sustainable success.
Training staff to manage the implementation of business strategies, improvements to procedures and customer service policies can also act as a benchmark for future recruitment and quality assurance practices.
As well as impacting on business profit margins, training can improve:
• staff morale and satisfaction
• 'soft skills' such as inter-staff communication and leadership
• time management
• customer satisfaction.
So there we are. Start thinking now about how investing in the skills of your people can benefit your business to make more money, save money or save time.
Five Business Benefits of Employee Training Programmes
Business Simulations: An Excellent Employee Training Tool
If you have ever run your own business you know how much of a hassle it can be to try to keep employees updated on new technology. Training can be very time consuming and expensive for both the company and the employee. This is where business simulations come into play. Using this technology you can find fun, unique, and cost effective ways to train your work force.
Business simulations can be offered in software, games, charts, and other easy to use systems. The most preferred way is with games because this keeps students entertained while they learn. This means they will pay more attention to the lesson and will actually enjoy it.
One very interesting business simulation environment is a lot like role playing. The student will be given a scenario and must figure out how to complete a certain task effectively. Depending on how the student tries to complete the task or how they answer the questions will decide how the environment plays out. This means that if they choose the wrong answer they can have something fail that can effect the simulation. This gives an interactive approach to learning and is more life like because your actions will have consequences.
There are also numerical charts that are used. These help teach employees to keep track of numbers and figure out expenses. It helps give them accounting skills and responsibility.
The best part of business simulations is how easy it is for the teacher to keep track of the students. With software and charts they can follow the students work and keep track of their progress throughout the program. This provides the employers with a hands on approach to what the students are doing.
All of these benefits are helping to switch over companies to use Business Simulation programs. It costs very little for them to try and can help them immensely with the training of their employees. This also helps employees have a good time while still getting the training they need.
In Business, How Do You Encourage Employee Retention?
Many businesses fail to realise the amount of time it takes to get a new employee fully trained. It can take anywhere between 1 and 6 months to train a new member of staff. It can also take the same amount of time to find out if they are suitable for the job in the first place!
Businesses also have a high turnover of staff due to not having proper policies in place to encourage the best staff to stay on in the business.
Some of the best ways to increase staff retention are also the simplest to implement. A great idea is to increase their holiday entitlements and other benefits over time served. Just a simple thing like giving an extra day off (to a maximum of 5) for each year in service can make a great difference. Giving employees greater flexibility and more control over the hour they choose to work, based on their length of service is also beneficial.
Making annual bonuses routine and incorporating them in the wage structure also helps to stop staff leaving half way through the year.
Training all your best staff so that they can take on more responsible work and improve their people management skills so that they understand how to treat and motivate the staff below them is essential.
Training is so imperative especially with technology changing at breakneck speeds. This is a win win situation. You end up getting more productivity and your employees feel appreciated.
Talking to your staff maybe quarterly (or every 6 months) and discussing their job will quickly identify what is troubling them. The biggest problem I had in my previous business was that staff didn't get on with each other! By just moving them around either in a different office or changing their roll I was able to retain my most valuable members.
Any time you have to critisise the action of an employee, use the kiss, kick kiss formula. Start of by praising what you do like of them followed by the criticism (and how they could change for the better) and end with praise again.
Another common gripe in the work is being forced to work with outdated equipment, machinery and computers that keep breaking down or are far too slow. Your employee probably costs you a small fortune and yet some employers are not willing to spend a few hundred pounds in upgrading old technology that will actually help in achieving substantially more productivity.
What about their desks, chairs, filing cabinets, staplers and other small pieces of equipment that cost pennies to keep maintained and yet are routinely in poor working order. Routine maintenance of all the equipment is essential.
If your staffs do perform well in any task be sure to let them know. It amazes me how bosses will leap at the first chance to critisise but will not utilise the opportunity to praise. Praise them verbally and in writing, and remember to give out rewards now and again.
What do you do if 1 of your best member of staff leaves? There is a huge likelihood that they might not enjoy their new job. Make sure that they know that not only did you value them whilst they were working for you but also that the door is still open for them if they decide to come back and remember to keep in touch. Former employees, having found out that the grass is not greener on the other side are likely to be the most valuable members second time around and are much easier to integrate back in the workplace.
Business Owner Or Employee - What Are You?
I have often heard business owners say that they could never imagine working for someone else, because they love the freedom that business ownership offers. On the other hand, I have heard employees say that they would never want to have their own businesses. They believe that there are a lot of hassles associated with being a business owner.
I have been both an employee and a business owner, and have noticed that business owners and employees have two different ways of thinking. Some of these key differences are explained below, and may help you determine where you fit in.
BUSINESS-OWNER MENTALITY
1. Solve a problem for someone else and create business for yourself – For example, the person who created the automatic car starter that starts your vehicle without having to step outdoors, solved a problem for many people. It has allowed residents of cold climates to start up their vehicles from inside a building, thus allowing the interior of the vehicle to warm up before even getting into the vehicle.
2. Enjoy flexible hours – If you need to, you can adjust your work hours to attend your child’s soccer game or school fieldtrip. You may also be able to decide what time of day you work. My girlfriend’s husband has his own business from home, and chooses to work in the evenings. This allows him to be home with their children when she is at her job during the day.
3. Realize that retirement is not based on age – In his book entitled “Rich Dad Poor Dad,” Robert T. Kiyosaki explains that ability to retire is actually based on your financial situation. And if you have a business that brings in a lot of income, retirement at any age is a real option. So instead of waiting to win the lottery, there are other ways to bring you wealth.
4. View operating expenses as an investment in your future – It is important to remember that “you have to put wood in the stove to get heat.” So if you pay to take a course that will bring you more business, then you really cannot look at it as an expense.
5. Accept that income can vary from month to month – You realize that it is the total income at the end of the year that is most important.
EMPLOYEE MENTALITY
1. Less flexible work hours – You trade hours for dollars. You are also happy working from 8:00 until 4:00. Once 4:00 comes, you are on your own time. What did not get done today at work can wait until tomorrow or may be able to be passed on to the next shift.
2. Accept that you are paid what the employer has decided the job is worth – If the top of the pay scale is $30,000 per year, that is all that you can make with that job.
3. Accept that raises in your salary are not under your control – Therefore, you look forward to the next raise, even if you only get it once per year.
4. Only people ages 50-60 can retire – Some employers have retirement plans in place, but you can only get a full pension cheque when your age and years of service at that job equal a predetermined number.
5. You like to know what your cheque is every month – You are not comfortable with cheques that change.
In summary, there are differences in how business owners and employees think. Based on what I have just explained, it can help you decide which category you fall into – business owner or employee.