When it comes to employee training, some small businesses are torn. They want their workers to be well equipped and productive, but they fear that these newly trained folks will desert them for higher-paying jobs at larger companies. That's a narrow view, and a potentially dangerous one. Companies that fail to develop their employees could be doing damage not only to morale, but to the bottom line as well.
HR Magazine reports that companies investing $1,500 or more per employee per year on training average 24% higher profit margins than companies with lower yearly training investments. The American Society for Training and Development (ASTD) collected training information from over 2,500 firms and found that companies that offer comprehensive training:
- Have 218% higher income per employee than those with less comprehensive training
- Enjoy a 24% higher profit margin than those who spend less on training
- Generate a 6% higher shareholder return if the training expenditure per employee increases by $680
For those who remain unconvinced, IBM provides yet another potent example. The international firm recently did a study to examine the percentage of capabilities that companies lose over time. When internal and external turnover, new technology and changes in businesses were factored in, the results were staggering. The study found that a company loses 10 to 30% of its original capabilities every year. Within three years, each company loses 41% of its staff. By year six, only 24% remain.
At New Horizons Computer Learning Centers, we understand the importance of ongoing education and the need for formalized training. Click here to view a list of our very latest course offerings.
Each day, New Horizons trains thousands of individuals all over the world on a host of different topics and technologies to ensure that they continue to expand their skill set. However, even more individuals fail to pursue training, and their skills eventually antiquate.
It’s vital to the success of a business to keep employees current for a variety of reasons:
- Technology keeps advancing. Are your employees? Technology shifts introduce change on an ongoing basis. The ability for your employees to handle that change and excel is crucial to the performance of any organization. Don’t let your latest software or operating system migration cripple workflow and serve as an obstacle when the exact opposite should be true.
- You’ve already made the investment. Don’t let it go to waste. As much as companies struggle to keep pace with technology, even more fail to take advantage of the technology that they already have. Advanced features are often overlooked and a company’s investment is rarely maximized. Ongoing training ensures a much stronger return on investment as individuals return to work more confident and equipped to do things more efficiently.
- Confidence breeds success. We know how important it is for our customers to be more confident behind the keyboard. That confidence comes not only from learning new skills, but also from knowing that they aren’t getting left behind. We want our customers to understand that they are greater than the technology they wrestle with on a daily basis. Ongoing training instills that belief and that belief leads to success.
- Keep your employees happy and keep them longer. A consistent investment in training lets your employees know that you’re investing in them. That improves morale and significantly impacts overall employee retention. Employees who have a mastery of the knowledge and skills that are essential for their job drives satisfaction and provides a sense of loyalty to the company. Remember, training employees is proven too be far less expensive than hiring new ones.
The demands of today’s workforce have forced the training industry to shift, and New Horizons has shifted along with it. We strive to make our training available when our customers need it. We continue to provide in-depth, full single and multiple-day training sessions for customers, but we also offer other options to fit everyone’s schedule. Our Power Hour series, for example, allows for our customers to get very specific, task-focused training in under an hour. This allows an organization to focus on their pain points and get exactly the right solutions for their business problems.
At New Horizons, our business is making your business better. We know the importance of improving skills and growing the capabilities within the walls of your organization.