Growing a profitable business demands a close eye on several quantifiable factors such as cash flow, profit margins, and customer retention rates. But for a moment, let’s consider some less tangible company components that are hard to represent with metrics but make a significant impact on your bottom line.
How about employee motivation? That’s a tough one to back with numerical evidence but an important one nonetheless. However, ongoing research shows the impact of training on employee motivation with some measurable data, showing less employee turnover, and increased productivity rates.
When a company invests in employee training, it will positively impact their business in several essential ways, including:
Employee Retention Rates
It’s always important to be on the lookout for employees that would be a strong fit for your company. However, high employee turnover rates lead to more time and money spent finding, hiring, and getting new team members up to speed. Employee churn can be a costly component for companies, and much like customer acquisition and retention, you’ll spend more on acquiring new ones than retaining current ones.
Employers will significantly improve retention rates by ensuring that their employees are fully equipped to confidently complete their job with the help of the right training tools. These retention rates will continue to skyrocket when employees recognize the significance and value of their role to the overall business structure. Research suggests that over 90% of employees will stay longer at a job where employers are actively investing in their skills and career development.
Training investments prepare and equip employees to perform their tasks at a higher level, which often results in higher levels of intrinsic motivation. Employees that are prepared for their jobs and confident that they can do them well will naturally be more engaged and productive. Companies that invest in training for their employees saw a 41% lower rate of absent employees and 17% higher productivity rates in employees across the board.
Employee engagement often operates as a two-way street, a collaborative effort between employer and employee, in which investments in employee training benefit both parties. Higher employee engagement is often the result of employers taking the first step in offering beneficial and accessible training tools to prepare their employees to do their job well.
Collaborative Work Environment
Training also contributes to greater employee buy-in, which results in a more collaborative work environment. While investing in employee training works to boost employee confidence and productivity, it also signals to employees that they are contributing to the growth of something important and impactful.
If a company is worth building, it is worth training its employees to ensure the right company culture and attitude. If those things in place, a company can more effectively collaborate to bring about company growth and development. When company employees see themselves as a team, vital and productive tasks will get accomplished in a more streamlined and cost-effective fashion.
The impact of training on employee motivation is significant because a company operates at its best when it is full of members that know the importance of their role and job. In today’s marketplace, employees value gaining knowledge to do their current job well and to add to their career portfolio and skills repertoire. Investing in employee training is also investing in your business growth and development.
Are you ready to find out how to make the most of your employee training investments? We can help.