TRAINING IS AN INVESTMENT, NOT AN EXPENSE

Training is an activity leading to skilled behavior, the process of teaching employees the
basic skills they need to perform their jobs. Training typically focuses on providing
employees with specific skills or helping those correct deficiencies in their performance. It is
a short-term learning process that involves the acquisition of knowledge, sharpening of skills,
concepts, rules, or changing of attitudes and behaviors to enhance the performance of
employees. Training is an integral part of any organization; it equips the employees with
skills required to perform the job. Every organization invests in training their employees that
are responsible for giving results. Most organizations/businesses consider training as an
expense when it is actually an investment.

Training a vital part of a company’s long-term investment and growth strategy. There are
numerous reasons to invest in training, like; improved quality or in other words reduction in
errors or defects, enhanced productivity, increased motivation, helps in retaining the talent
pool, capacity building, groom the leaders, etc. Training helps in building capacity within an
organization, and investing in people is vital as this is the workforce which can bring
excellent profits to your business. Managers must stay diligent and schedule formal training
when they have critical skill needs. According to the 2019 report, 58% of decision-makers
worldwide said their organizations offered training, but only 49% percent of that group
authorized training for their team members. Skipping out on available IT training is a huge
wasted opportunity.

A survey by Progressive Business Publications shows that only 52% of companies

It is a proven fact that companies that provide well-planned employee training programs will
outperform their competitors. The best companies in the world spend the most on training to
provide their employees with the skills they need to deliver top-notch service. Their leaders
view training as an investment in success, rather than as an expense. The benefits of skilled
and certified team members are too great to pass up. Certifications continue to pay off in
terms of employee salary, job satisfaction and value to the organization. And decision-makers
who authorized training in the prior year are significantly more likely to authorize training in
the future. They witness the advantages first-hand and are hungry for more.

Some Fortune 100 companies, such as General Electric, spend more than US$1 billion a year
on these initiatives, but it’s not necessary to dedicate anywhere near that level of resources.
There are several specific steps an organization can take—many of which are relatively low-
cost—to enhance training and development efforts. In the end, any program can be successful
if it satisfies two requirements:

 Employees make significant improvements in their knowledge level and work product
as a result, and
 In the process, employees recognize and appreciate the fact that their company is
supportive of their ongoing professional growth.

Here are the top 5 reasons why we should invest in employee training.

1. Improved Retention

Training is an excellent retention tool. When employees are trained well and training is
continuous, employees feel challenged and more likely to want to stay with the company
because they continue to learn and grow. While there are expenses involved in training, the
costs are nothing compared to what a company loses when they have a high turnover
rate. High turnover costs are more than we may realize. Beyond having to train and on board
a new employee to replace the old one, we are spending more money to interview candidates
and advertising the vacant position. And until the new hire is up to speed on processes, their
level of efficiency as a new hire who is just learning the ropes is leading to a decrease in
overall productivity, costing you more money.

2. Attracting the Best Talent

Finding the best talent to be a part of the organization is challenging as more companies start
to offer candidates more perks and benefits. To most employees, continuous development
programs that may result in promotion is attractive as it means growth.

3. Employee Loyalty
When employees are trained, and we invest in their development, they feel appreciated and
valued. And when employees feel that their company cares about their continuous growth,
they develop a sense of loyalty and eventually, become advocates for your
organization. Loyalty and advocacy mean employees are engaged, improving the brand’s
overall image and reputation.

4. Market Flexibility

No industry is immune to change. As markets evolve and old technologies are phased out,
and innovations are introduced, companies who fail to continuously train get left behind.
When employees are trained and developed, they respond to market and process changes
better and faster.

5. Increased Productivity

When employees are trained well, they are equipped with the skills, knowledge, and
resources to perform their jobs effectively. They require less supervision and commit fewer
mistakes. And with improved competency comes an increase in efficiency and productivity.
And when productivity is high, as is profitability.

There is another reason, too: potential turnover. The skills gap means that a company’s
current staff members have increasing incentives to pursue other opportunities in this job
market. In a Robert Half Finance & Accounting survey released last fall, 88 percent of the
finance and accounting professionals who responded said that they are “very” or “somewhat”
concerned about keeping their skill set current over the next three to five years (see Exhibit 1,
below). And 64 percent said the ability to gain new skills is “very important” when
evaluating a new job opportunity (see Exhibit 2). Companies should intentionally give
employees access to meaningful training and development programs so they don’t have to
turn to a competitor to find those opportunities.

Conclusively, there is a positive impact on business results when employees are trained
and feel that they are making a valuable contribution. While training employees do require an
investment, the returns are considerable when we think about how a well-trained employee
means better quality outputs executed more efficiently. Efficiency translates to fewer
incidents thus keeping overall costs to fix mistakes at a minimum; proving that training is
well worth the investment.