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The leading source for practical, results-oriented Human Resources Training, Solutions & Tools for small-medium size businesses on Vancouver Island.

To Train or Not to Train

As the Canadian economy has slowed in recent months, many small business owners are seeking ways to weather the storm by reducing expenses, including decreasing (or eliminating) employee training budgets. But consider this, is cutting back on employee training truly a cost savings? What are the potential costs associated with NOT training employees?
 
While businesses that invest in employee training realize many benefits in the areas of achievement of business goals, increased organizational effectiveness and increased employee retention and engagement, businesses that choose not to invest in employee training risk realizing many negative (and potential more costly) impacts on the business such as decreased revenues, profitability and high employee turnover.  
 
When determining whether or not to invest in training your employees, consider the following:
 
Benefits of Employee Training
  • Increased customer satisfaction and loyalty
  • Increased employee morale
  • Increased employee retention and engagement
  • Enhanced company image as a great employer
  • Achievement of business sales/revenue goals
  • Increased profitability
  • Decreased employee turnover
  • Decreased recruiting expenses
     
Potential Costs of NOT Training Employees
  • Decreased sales/revenues, lack of employee product knowledge or sales abilities
  • Decreased business efficiency, increased resources spent on rework to correct errors
  • Increased labour costs, addition labour to support business inefficiencies
  • Decreased customer satisfaction, increased inconsistent delivery of products and/or services
  • Decreased employee morale
  • Increased employee turnover, increased recruiting costs
  • Decreased company image
Small business owners can maximize their return on employee training investment by following a few key tips:
 
Identify and prioritize training. Focus on employee training needs (must have), instead of the wants (nice to have).
 
Develop an annual training plan. Spread training sessions (and expenses) over the course of the calendar year to accommodate business volumes, holidays, etc.
 
Implement an internal peer training program. Involve highly skilled and knowledgeable employees in training others.
 
Share the cost of training. Where possible, partner with another business and send a group of employees to training when group rates are available or bring in a trainer and split the cost.
 
Involve employees in training decisions. Ask employees what training they think they need in order to perform at their best. They will more likely buy-in to participating in the training and may even offer a few less-expensive and creative solutions when they are involved in the process.

History has shown that the current downward economic trends won't last and that sooner or later the economy will begin to bounce back. Businesses that adopt a strategic approach to employee training and focus on maximize the return on their employee training dollars will continue to realize business success, now and long into the future after current the economic storm passes.

   

About the Author

Ginger Brunner is the founder and director of Dynamic HR Solutions Inc. a leading source for practical, results-oriented Human Resources training, solutions & tools for small-medium size businesses, specializing in the Hospitality Industry.
 
 
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