Imagine you are the CFO of your company. As CFO, two of your principal priorities are budgeting and mitigating financial losses. You ask the CEO, “What happens if we invest in developing our people and they leave us?” Two of a CEO’s chief duties are driving growth and pursuing innovation. She, therefore, responds, “What happens if we don’t and they stay?”
In 2015, the Harvard Business Review found that talent management was the top concern of 67% of the CEOs interviewed. A 2016 PwC’s 19th Annual Global CEO survey of more than 1,409 company leaders hailing from 83 different countries suggested that 75% of CEOs said that “a skilled, educated and adaptable workforce should be a priority.” 3 of 4 leaders surveyed were concerned that their company’s ability to innovate effectively was impacted by skill shortages.
Moral of the story: effective, ongoing training and personal development is paramount for success.
Benefits of Effective Employee Training
Continual training and development is demonstrably worth the investment. Building skillsets is positively correlated with a company’s bottom line.
So how can ongoing training benefit your business?
- Address weaknesses, uncover potential and promote flexibility within your team – No matter how great an employee is, there is always room for growth. You can cross-train your team, enabling employees to develop skillsets that allow them to take on a greater variety of work. Teams are aligned through training and able to better execute and collaborate.
- Increase motivation, productivity and efficiency – Your staff will feel more confident and better equipped to solve problems themselves. This reduces the need for supervision and/or micro-management by superiors.
- Increase job satisfaction and employee retention – Personal and professional development is a non-negotiable for many of today’s workers, particularly Millennials. By providing training and advancement opportunities, you demonstrate that you value your people and they, in turn, feel more involved and connected to the company, improving morale, company culture and employee retention.
- Build a leadership pipeline – With targeted leadership training, your current employees will eventually be eligible for internal promotion, reducing hiring costs and promoting a strong culture within your organization. Opportunities for upward mobility are highly valued by today’s employees and building a pipeline is vital to filling critical positions quickly. In fact, a PwC survey found that 49% of CEOs are shifting their talent strategy to focus on building the leadership pipeline.
- Increase consistency – Access to regular training ensures that you have a cohesive and efficient organization, reducing errors and accidents.
- Enhance company reputation and attraction of new talent – Many of today’s job seekers are searching for a company with a strong culture, satisfied employees and opportunities for growth. By enhancing culture, you enhance brand image, potentially drawing qualified employees to your brand.
- Adapt to industry changes – Industry regulations are constantly evolving, and it is critical to keep up with the changes and stay ahead of competitors.
- Utilize the latest technological developments – Employees need to be comfortable with the latest tech advancements and be able use them to their full potential.
KPMG said it best in a 2015 CEO Outlook survey, stating, “Having a purpose that employees can align to, providing the skills and opportunities to learn and grow, and building an inclusive culture are all critical to attracting and retaining the best talent, which in turn helps drive innovation initiatives that drive the business forward.”
Contact us today to learn more about how we can help with your training and development needs.