Is Employee Training a New Normal in the Current and Future Global Economy?May 22, 2020
Is Employee Training a New normal in the current and future global economy?
If you received an email today that could tell you one thing that you can change in your company that would spike your employee productivity by over 89%, would you hesitate to implement the change? My bet is absolutely not. Nonetheless, like you, I would be questioning what exactly would significantly increase the production of my small/ medium enterprise of probably 30 employees by such an infeasible increase. Ordinarily, one would be tempted to think that it has to be a long and probably rigorous exercise that would result in a colossal financial investment. If that is your thought, then you are very far from the truth. This article will take you on a short step-by-step journey of realizing your small businesses' potential through investing in your employees. The article will paint the picture that captures your current business position and help you project your growth. Again, without extrapolated financial consequences.
In accordance with the National Talent Development Association, SME’s in the United States that offer comprehensive training programs that have 104% higher income per Employee as compared to SME’s without any form of formalized training. Further, these small businesses achieve a 20% higher profit margin than companies that do not focus on employee development. Walt Disney, one of the best marketers whose entrepreneurial journey is now studied all over the world, is famed for his controversial but one of the most successful marketing strategies of always investing in training marketers in his company even in times of economic downturns.
The cost of hiring an employee at the management level goes as high as $40,000 due to payment of up to 6 months for employees who are released from the company. Hiring more skilled employees is also more expensive since their salaries are also higher as compared to equipping the employees at work without necessarily having to raise their salaries.
"An investment in knowledge always pays the best interest." Benjamin Franklin
What does Employee training mean for your company?
Employee Emotional Commitment
While employees are motivated at work by incentives and good salaries, polishing their skills through work, training is also a major motivational factor. The feeling of the company not only paying them for their services but also adding value to what they have already, fuels that. Motivation increases employee loyalty and commitment to the company. While that may not necessarily be synonymous with an instant improvement of performance, it contributes to their overall growth in their participation at the workplace. Moreover, it is also a surefire way of the company showing the employees that they are valued by the organization, and it hopes to have them around for some time. Monthly targets will not only be achieved but will be surpassed when a motivated and emotionally committed workforce is in place.
In a survey by the Human Resource Review in the U.S, OVER 60% of the workers answered in the affirmative that they would leave their current roles if their employers stopped providing the training they provided to them at work. Further, the survey explained that close to 40% of these employees had previously left positions before due to lack of the same. This study goes a long way to paint a scenario of how a promising business could on talents that can spur its growth to the next level. While attracting good employees is important for any company, retaining and growing these good employees is more imperative and directly affects the health and growth of a business.
Solves a contemporary Problem -Skills Gap.
A highly rapid and brisk global economy demands companies to keep abreast of the ever-changing technology and improved skills for the company to gain a competitive edge. While employees could be well and qualified when being hired, their skill set may not be as effective as it was when the Employee was being hired a decade into the job. Chief among the reasons for their downward trajectory is the technology and its effect on the market. For instance, cold calling was a highly effective marketing technique two decades ago. But as it would be, it's not the most effective marketing technique in recent times. Please refer to the Inbound Marketing vs. Cold Calling blog.
Research by Middlesex University for Work-Based Learning indicated that the relevance of contemporary businesses is pegged on the ability of the company to ensure that the employees are continuously equipped with emerging market trends or risk facing out or dwindling profits over time.
Online vs. Offline Employee Training
Traditionally, companies have been paying for their employees to get trained in physical locations. Nonetheless, it turns out to be a costly venture as it may include the movement of the employees or the trainers. It may also be costly to the company since some of the productive office hours are sacrificed for the employees to go and learn. On the other hand, online training comes with several advantages, as explained by myself, a seasoned marketing trainer, and a corporate digital coach.
Merits of online employee training
Unlike online training, in an offline arrangement, the SME will be required to close the office, which implies some corporate gymnastics. For instance, if a seminar is to last for a week, the company may remain closed for that period for the employees to attend the training. Such seminars will also imply that the organization may need to also stretch its budget to even cater for accommodations, transport, and other expenses. Online training, on the contrary, only requires a synchronization of the employees' schedule into a single online schedule. Organizations that are fortunate enough to work with market professionals such as myself, I do not only get equipped with skills but are also offered market mentorship as well as digital skills to continue expanding the company's network online. Additionally, organizations such as harrisonbaron.com are also reasonable in their pricing and have a very interactive website where an organization can engage with them for training.
An immensely significant dimension to also consider is the fact that online training of employees is not constrained to one location like a room or a lecture hall. Online trainers such as myself on creating online webinars and classes that are flexible, and besides, they provide material that can be downloaded such as PDFs, videos, and tutorials that the employees can watch at any time and anywhere. Employees can also make good use of the Internet to also get other materials as directed by the trainer.
Personalization of Training
Unlike in physical training, online training is somewhat isolated learning. The trainer is, therefore, in a better position to not only monitor but also offer individualized help to the employees in areas where they may be experiencing any weakness.
In comparison with traditional training, online training and coaching are not limited in the number of courses that the employees can learn over time. In the physical training, due to the expense of hosting seminars, the content is limited since the lecturers have to balance the company time that the employees are spending in the seminar. However, in the online platform, courses are not limited since experienced coaches can give unlimited resources on a particular course.
It is Trendy
In the recent past, education, even in institutions of higher learning, is also continuously shifting from traditional classrooms to modern online classes. Millennials have jumped on the trend, and a majority of them prefer studying at the comfort of their seats or seated beside a swimming pool as opposed to having them sit for long hours in a physical seminar. It is therefore highly recommended to flow with the times and get the best out of it.
In the current times' organizations have embraced globalization intending to increase the profit margins. In this scenario, therefore, organizations can adopt online training to train even the employees oversees without necessarily having to fly them to one location. Further, in times of calamities such as now during the COVID-19 pandemic, online training is still ongoing since one only needs a gadget that connects to the Internet.
Conclusively, it is of much significance for any organization existing in the global economy today, to invest in employee training. Employee training increases the productivity of the employees, motivates them, and breeds company loyalty among employees. Further, the world has moved from physical training to online training where professional and experienced trainers can train them to step by step and help them move to the next level of their careers.