The importance of employee training:
6 reasons why it saves you money
Importance of employee training, workplace training, training employees, revenue increase linked with employee training and training as an investment in the business are the terms that you keep reading a lot on and offline. Training employees is a raging concern with big and small businesses alike and that is for a good reason.
For all the smart businesses, employee training is an integral part of all small business growth strategies. Of all the evident and obvious reasons, training money saves money in business and it is smart to consider what you spend on training as an investment in the business.
Here are 6 good reasons on the importance of employee training and how it saves your business money:
- Training employees improve’s their work potential beyond the ordinary. Training makes the employees more productive with better knowledge and understanding of the company policies, work requirements, job specifications and rules of the business. Having a better understanding of all these business values (through employee training) makes employees more productive and they contribute towards revenue increase and the employer save money in business.
- It enhances their on the job performance. It is perfectly understandable that an employee with enhanced understanding of the job requirements (through employee training) is much better placed to perform better in the workplace and contribute towards the increase in revenue. Employee training as a part of small business strategies creates a cumulative effect where well trained employees contribute towards revenue increase and businesses make money.
- Businesses make money through better employee efficiency. Well trained employees perform their jobs much more quickly and efficiently. It takes them much lesser time to perform those functions which an untrained employee performs in longer time. It improves the overall organization efficiency and results in increased revenues.
- Trained employees make fewer mistakes and errors. It is understandable that a trained employee makes fewer mistakes at work and the resultant product is generated at a lower cost. By virtue of the investment in training of the employees, a business can ensure an error free workplace through employee training. Fewer errors mean fewer revisions and correction that leads to lower production costs and increase in revenue. Vice versa, untrained employees cost more in terms of unintentional errors attributable to lack of knowledge or understanding of the system.
- Lost clients and opportunities. Trained employees are proven to be more apt at landing clients and cashing on the opportunities than untrained employees are liable to miss on. It may not happen often but this is a real time possibility and a sure way for a business to lose money.
- Consistency brings in uniformity and an increase in revenues. Trained employees work consistently across the board irrespective of their position within the hierarchy. This brings uniformity and cohesion within an organization which contributes to overall increase in productivity and revenues generated by the workforce. An untrained workforce on the other hand may not be as productive due to haphazard approach towards trouble shooting and organizational problem solving. This contributes towards organizational chaos and lost revenues, increased operation costs and lack of productivity,