Updated: May 21
What is the real ROI of training?
In the past 20+ months, we have been enlightened with learning about the effects of low wages, "unreasonable" expectations and poor or even "inflexible" working conditions, as significant contributors to the "silent resignation". With this being the most intriguing labor crisis, our generation has faced so far, I would like to address training as a form of non-traditional employee benefit.
You see, training is the most compelling way to demonstrate to your team that you believe in a culture of care.
As we moved from shutdown to crazy busy, most organizations were not prepared to onboard team members at such fast pace. Specially in industries such as hospitality & service. To make matters worse, most organizations lost the same number of employees during the first ninety days, as the amount they had hired. A behavior that supports the everlasting revolving-door syndrome many organizations experience when there is a problem with their culture.
In many cases, leaders were forced to welcome and push the new hire to the open air of the everyday job duties without a parachute. Not allowing that new team member to get acquainted or even to receive the proper training for the job. The cherry on top? After COVID hit, a lot of people jumped the fence to another industry thinking the grass was greener on the other side. Leaving them to start new jobs with their transferrable skills, and no hands-on experience on their new field.
So, in case you are still asking yourself, how does training add value, I am here to present my case. When team members feel recognized, cared for, and valued, they feel worth it and confident. This increased sense of self-worth and self-esteem are key drivers in building loyalty, morale, and best of it all, greater efforts.
The potential training creates, has proven time and time again, to pay off. Team members are readily available for promotions when properly trained, ready to take on the next step and grow. When an organization invests in their team's training (in all levels), it allows them to see ahead, removing their blindfolds to the endless opportunities the organization has for them. Team members can now plan a career path, making it more interesting to invest in the organization's future, because it is THEIR future.
When we can determine what our team's learning gaps are, and discover weaknesses, training helps employees at every level, overcome those weaknesses and turn them into opportunities. Let's be honest, it is unlikely to find a team member who does not have some sort of weaknesses they can improve upon. Training my friends, creates the foundation to excelling in job performance, which leads to happy supervisors and team members. Which as we all know, leads to happy customers.
For those of you who like facts, the following statistics demonstrate the importance of proper job training to today’s workforce. Be my guest and indulge in the numbers:
· Nearly 59% of employees claim they had no workplace training and that most of their skills were self-taught.
· 74% of workers are willing to learn new skills or re-train to remain employable.
· 87% of millennials believe learning and development in the workplace is important.
· 59% of millennials claim development opportunities are extremely important when deciding whether to apply for a position.
· Only 29% of employees are “very satisfied” with their current career advancement opportunities available within their organization.
· 34% of employees are very satisfied with their job-specific training even though 41% of them consider it to be very important.
· 74% of surveyed employees feel they aren’t reaching full potential at work due to lack of development opportunities.
· 41% of employees consider their organization’s career advancement opportunities a very important factor to their job satisfaction.
· 76% of millennials believe professional development opportunities are one of the most important aspects of company culture.
· 76% of employees say that a company would be more appealing if it offered additional skills training to its staff.
· 59% of employees invest in their own training, to a certain extent.
· 61% of adults in the United States seek career development opportunities when considering job opportunities.
Now, if these facts are still not enough, we can agree to recognize that training traditionally leads to increased job performance, reduced turnover rates, lower costs by reducing resources waste or assets' damage, improved customer service satisfaction, and the list goes on.
Team members find infinite value in learning and development opportunities, especially the younger generation, so it’s no surprise that they are more likely to stay at companies that invest in their continued education. Allow me to ratify this one more time, organizations with successful training programs see a significant increase in employee retention.
Training undoubtedly leads to employee retention and ultimately growth!
I rest my case.