Why businesses need to invest in staff training

Employees are an organization’s greatest asset. Without its employees, an organization would simply fall to pieces. In today’s increasingly competitive world, entrepreneurs and businesses need to step up to the plate as we head into the future.

This is why it has become increasingly important for employees to constantly upskill themselves. With traditional business processes being retired and new requirements constantly reappearing, a change has to be made.

For years now, HR professionals have constantly pushed for new training programs to be implemented. While some may argue against this logic, today’s ever demanding economy means that there is an insatiable thirst for skilled individuals.

Here are some of our reasons why organizations should seriously consider investing in employee training.

  1. Improved efficiency and productivity

First popularized by Toyota back in the 1980s, the term “lean” has become synonymous with optimization and cost reduction., Lean encourages employees to develop new ways to continually improve themselves and other business processes.

It is this passion for continual improvement that has driven Toyota forward and made them one of the world’s largest manufacturers.

As can be seen by the Toyota success story, providing employees with plentiful opportunities for professional development improves work performance and efficiency.

On the long-term, this is extremely beneficial for your bottom line as costs fall and productivity improves. It’s a profitable bet, safer than guessing the Kentucky Derby winners.

  1. Reduced staff turnover

With a booming economy, it is no surprise that employees are constantly on the lookout for better job opportunities. Studies have shown that the lack of professional development and progression is one of the main reasons why employees choose to leave a company.

Employers who offer upskilling programs to interested employees will find it significantly easier to retain employees. Taking an interest in the professional development of one’s employees sends a positive message to the rest of the team i.e. their efforts are appreciated and respected by the organization.

Alongside lower rates of turnover, upskilling programs allow an employer to build up a team of dedicated and well-motivated individuals armed with a unique set of skills who will provide the organization with a competitive edge.

  1. Better succession planning

All businesses work on the assumption that they will be in operation for an indefinite period of time. In the case of a new enterprise, succession planning is often at the back of an entrepreneur’s mind. After all, there’s the need to contend with day-to-day operations and organizational growth. 

In today’s high-paced world, neglecting succession planning is a recipe for disaster. 

Given the speed in which companies can grow, this can cause numerous growing pains i.e. the inability to hire skilled employees for key positions. As a result, this can significantly impact an organization’s long-term growth plans.

Hence this is why training and upskilling programs is essential for even the smallest of enterprises. Developing talent internally ensures that employers have a steady pipeline of talent that can be drawn upon if needed.

Succession aside, developing talent internally ensures that existing employers are given plenty of opportunity to advance themselves. This is crucial for keeping morale up and providing existing employees with new job opportunities thus keeping them within the organization.

  1. Encourage innovation

Businesses nowadays are no longer dependent on the will of a single individual ala Apple and Microsoft. Instead of mega corporations, smaller more agile organizations powered by a group of like-minded individuals have taken precedence.

Upskilling or multi skilling encourages flexibility in the workplace and pushes employees to adopt a more innovative attitude.

Staff training has long been overlooked by employers who dismiss as a mere formality. Nowadays with changing market conditions and an increasingly competitive world economy, businesses need possible advantage they can get their hands on. 

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