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The Business Case for Staff Training

It is estimated that skills gaps cost £165,000 for a typical 50 employee business every year.

The Business Case for Training

Providing good training for your staff is likely to have an overall positive effect on the way the business performs. ‘It is ... important to ensure that UK businesses and their employees have the skills to compete ... Innovative businesses need educated, entrepreneurial and skilled people.'

Productivity

Research shows that productivity increases while training takes place. Staffs who receive formal training can be 230% more productive than untrained colleagues who are working in the same role.

Staff Retention

Training increases staff retention which is a significant cost saving, as the loss of one competent person can be the equivalent of one year's pay and benefits.
In some companies, training programs have reduced staff turnover by 70 per cent and led to a return on investment of 7,000 per cent.
Improved quality and productivity
Training that meets both staff and employer needs can increase the quality and flexibility of a business's services by fostering:

• accuracy and efficiency
• good work safety practices
• better customer service.

The flow-on effect

The benefits of training in one area can flow through to all levels of an organisation. Over time, training will boost the bottom line and reduce costs by decreasing:

• wasted time and materials
• maintenance costs of machinery and equipment
• workplace accidents, leading to lower insurance premiums
• recruitment costs through the internal promotion of skilled staff
• absenteeism.

Staying competitive

Businesses must continually change their work practices and infrastructure to stay competitive in a global market. Training staff to manage the implementation of new technology, work practices and business strategies can also act as a benchmark for future recruitment and quality assurance practices.

As well as impacting on business profit margins, training can improve:

• staff morale and satisfaction
• 'soft skills' such as inter-staff communication and leadership
• time management
• customer satisfaction.

'The principal reason why training is profitable to firms is that it increases the productivity of their employees more than it raises their employees' wages ...'