It can be very difficult to measure the impact staff training and development is having on the bottom line of a business. While many acknowledge it is an important part of any organisation’s strategy, assessing what makes a certain course have value is hard to conceive and measure due to the benefits being more intangible. Here are some ways in which staff training and development can impact your bottom line.
Add skills without hiring
Hiring new staff is an expensive process encompassing the initial advertising process through to the productivity lost from sifting through applications and interviewing. Furthermore, hiring staff with skills that you know you need but don’t fully understand the ins and outs of can result in poorer results further down the line. By upskilling current staff members, whole teams can come to understand new concepts and processes as a unit, sharing best practice and learning in a much more holistic manner, while keeping hiring costs low.
Lowers employee turnover rate
Training staff shows them that you are invested in them and in their careers. This sense of being valued boosts morale and promotes loyalty. This affects your bottom line as it will lower employee turnover rate, again mitigating costs for new hires. It also promotes accountability amongst employees, making sure everyone is on the same page and knows the correct way of doing things, reducing employee disagreements. Furthermore, keeping employees who know the business around will create employees ripe for promotion to managerial and executive positions, especially with all those new skills they’ve learned.
This enhanced scope for advancement further lowers employee turnover and reducing costs.
Helps ensure compliance
There is also the factor of what may happen if you don’t train and develop your staff. Some training is essential for the proper functioning business, helping to ensure compliance and therefore mitigating some potentially huge legal costs being incurred if proper process is not followed.
Future-proofing the business
By introducing new, cutting-edge skills to your current staff, you’re helping to future proof your business and processes and ways of working continue to change and develop in line with new technologies. This keeps your business agile and competitive, helping it grow and stay ahead of competitors in an ever-changing world, increasing profits and adding value to your business.
Attract high calibre talent
When the time does come to add productive capacity to your business, offering a robust training and development programme makes your business more attractive, enticing more capable and higher calibre employees to any role you are looking to fill. This will impact your bottom line by adding more capability to your team and increasing productivity.