Recent research has confirmed what companies have known for years: Employees who receive company-funded training are more productive and financially sound. But what are the benefits for the company when it comes to employee training? This study also revealed evidence that companies who invest in employee training are also able to reap the benefits. Companies that invest in employee training experience increased productivity and innovation. Employee training has many benefits. It can increase technical knowledge and performance, as well as lower wages for employees who are enrolled in the training program. It is common to believe that businesses incur greater expenses due to the training and the loss of productivity caused by employees. Employees and companies both invest significant time and money each year in company-funded training. One study found that almost half of the workforce receives some type of company-funded training each year. Work training can also take up to three weeks per year.
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How important is employee training?
On-the-job training is a growing trend thanks to the rapidly changing technological landscape. Companies can promote a positive work environment and encourage employees to feel empowered and capable by giving them the tools and skills they need.
A study in the United Kingdom found that productivity rose by 6% when there was an increase of 10% in the number employees receiving training. In Germany, productivity rose by.76% when there was an increase of 1% in the number of employees receiving training. A mid-90s Portuguese study examined the impact of training on productivity in multiple companies. It considered the opportunity cost to employees taking time off from their work schedule to train. The 8.6% return on productivity was found in this study.
Why is employee training so important?
On-the-job training improves productivity and morale by attracting top talent. It also helps companies identify employees who should be promoted. Company funds can be saved by diversifying the skills and talents of employees. Employee loyalty can be increased by making employees feel valued and investing in their development. Businesses that don’t invest in human-centric retention strategies like employee training will be left behind as worker expectations rise and the largest U.S. corporations compete for top talent.