Employee Training in Any Economic Environment

Everyone wishes they had a crystal ball that shows exactly what will happen with our economy. No matter what happens, we know the value that training brings to our organizations. In good times, and not-so-good times, training:

reduces turnover;
drives company culture;
improves service and creates customer loyalty;
creates more efficient and profitable operations.

So, Learning and Development gurus, we must learn about the VALUE we provide the organization and WHY we must maintain our place at the corporate leadership table. Today, let’s look at these reasons employee training is important in any economic climate.

You only get one chance to make a good first impression – To reduce turnover, get your on-boarding right. It’s cliché, sure, but only because it is true. Employees learn their place in the company, their job duties, and all about the company’s culture in their very first days on the job. Most importantly, good onboarding builds engagement between the new employee and the company. According to a survey conducted by Careerbuilder and Silkroad Technology nearly 1 in 10 have left a company because of a poor onboarding experience, and 37% percent of employees said their manager did not play a critical role in their onboarding experience. Research shows when a company has great onboarding 69% of employees are likely to stay for at least 3 years.⁴
Training aids in retention efforts – Employees want opportunities to develop their skills and they will stay longer with employers who have an established development plan for them. According to a report by The Execu|Search Group, 86% of professionals said that they would change jobs if a new company offered them more opportunities for professional development.²
Training drives company culture! With the return to the office (even part time) wave upon us, traditional classroom training is returning as well. This presents the perfect opportunity to build/enhance your organizations culture. In many cases, a classroom training event might be the first time many employees have been in larger groups together. Be sure to build in time to communication, reinforce, and model your company’s cultural elements. Today’s workforce is clamoring to be engaged – make sure to tend to this when designing/developing your new and improved classroom training events.
Training increases profitability through service and efficiency.
- Companies are all vying for customers and those who deliver the best service win.
- Companies that invest in professional development are more profitable.¹ According research from the MIT Sloan School of Management, “an employer’s year-long soft skills training program led to a roughly 250 percent return on investment within eight months.” Upskilling could boost global GDP as much as $6.5 trillion by 2030, according to a 2021 report from the World Economic Forum in collaboration with international professional services firm PricewaterhouseCoopers.

What will the future bring? Nobody knows for sure. But, those companies with a continued focus on training efforts will certainly win.

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