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The fast-paced and ever changing corporate world needs training and development programs to
keep up with different challenges. The annual report that analyzes the ‘FORTUNE 100 best
companies to work for‘states that the 100 best companies are committed to employee
development as a top strategic priority. Employees are considered to be the most valuable asset
of a company and investing in their training further enhances their capabilities and productivity.
A three-year researched project commissioned by Middlesex University’s institute for work
based learning found that from a 4300 workers sample, 74% felt that they were not achieving
their full potential at work due to lack of development opportunities.
The result of this research highlights the importance of training and development to ensure
successful business continuity. There is a myriad of benefits that companies enjoy by
incorporating training and development in their strategic plans, some are more obvious than
others: Sales and product knowledge training leads to increased revenue and market share,
service training leads to better customer service experience and brand loyalty, innovation
training generates new ways of thinking, potentially leading to new products and services.
Employee retention
Studies have shown that 60% of employees would opt to stay with an employer that invests in
their professional development, rather than go to an employer that pays more but does not invest
in professional development. It is indispensable to keep employees engaged at work. Higher
retention rates and less labor turnover is crucial for the success of your business. All this can
happen with a good training and development plan to keep the employees motivated. Besides,
the cost of retaining existing employees is much less than replacing them. According to CED
Magazine seven out of ten respondents in a 2015 survey said that job-related training and
development opportunities directly influence their decision to stay in a company.
Increasing Productivity
It is no surprise that training and development naturally leads to more productivity. By making
sure that necessary training is given to employees to improve their skills, the company is in turn
ensuring a higher productivity rate. Well trained employees show both quality and quantity
performance. This leads to less wastage of time, resources and money.
Conclusion
Training and development benefits not only the employees’ personal evolution but also impacts
on the company’s productivity and profitability as a whole. It reinforces the goodwill of the
business, allows it to maintain the competitive edge and leads to higher customer satisfaction,
lower costs and faster growth. At the end of the day, the most valuable training aligns the
employees’ way of working to the company’s own culture and core objectives