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Why Employee Training is a Smart Investment

When considering areas to make budget cuts, employee training can often be an easy target. As a time consuming and usually costly add on, with rewards that aren’t necessarily immediate, many employers fall into the trap of thinking it is not needed.

However, by cutting your employee training budget you are, in fact, increasing your costs. How do we fall into this trap? We may think training is a one-time only thing designed for new starters, or for employees taking on the senior roles. Perhaps we are weary of investing too much in training when there is the possibility staff will be poached or simply decide to leave. Instead of deciding whether to scrap training, you should be deciding whether you want to invest more or less. Here are some things to keep in mind:

Trained Employees Are More Likely to Stay

Employees that are well trained are less likely to leave an organisation. Why? When an employee is trained, they are therefore more likely to be competent and confident in their work. Taking the time to train staff shows them you appreciate their work and will help an employee feel appreciated and more willing to put in extra effort.

By making the effort to help them complete work efficiently and keeping them from quitting, you can avoid:

  • The cost of replacing them (advertisements)
  • Conducting interviews and staff induction processes that take time away from important tasks
  • Damage to the team environment and morale
  • Having a high turnover that could affect customers’ view of your business

Keeping this in mind, it’s easy to see the benefits far outweigh the costs it takes to train staff.

Training Can Boost the Attitude of Staff

The role of an employer is to train their staff well enough for them to exceed in their position. Without the proper training, employers can come to feel inadequate as they are unsure of how to properly complete their tasks. Questioning what it is they are meant to be doing and feeling they are not accomplishing anything can be very damaging, and can lead employees to look elsewhere for work. The feeling of inadequacy can be disastrous for morale and can also then affect how customers experience your company.

The fact is, employees want to do a good job and want to feel their work is of a high standard and valued.  You need to do your part to ensure they have the knowledge and tools to be able to do this.

Save Costs and Boost the Customer Experience

Let’s take a look at the qualities an untrained employee can bring to the table:

  • They are less efficient
  • They lack in-depth knowledge concerning services and/or products
  • They may not be able to offer quality customer support
  • They may be less productive

Not training correctly now looks pretty expensive, doesn’t it? Put simply, an untrained member of staff will ultimately cost you more in the long run. Without the right direction, staff will be left to learn as they go, which could lead to them making wrong decisions or worrying too much to be able to offer adequate customer support. Knowledge is power, and with the right information an employee could quickly become a valued member of your team.

Entry Level Positions Are Important Too

Think an entry-level position isn’t all that important? Think again. Whether a customer calls your front desk, comes into your store, or sends an email, it’s the entry-level employee who is going to be interacting with them. A customer only cares about the experience they are given by your staff, no matter who it is. So it is important you do what you can to uphold your positive reputation and ensure your entry-level staff are trained correctly. No matter what they are in charge of, even if it is manning the register, there are things you can teach, such as positive customer engagement and upselling.

Here are tips that you can pass on to an entry-level staff member:

  1. Effective communication – making eye contact, speaking clearly, have knowledge of services and products, and smile.
  2. Teach them to take initiative – train them to look for new tasks when their assigned job is finished.
  3. Teach them how to effectively deal with complicated situations such as conflict. Let them know it is okay to approach you when they are dealing with a difficult customer and give them tips on how to diffuse difficult situations.

For most people, an entry-level position is their first job, so having the right training is crucial not only for your business but for their professional development too. While employee training won’t show you instantaneous capital gain, it will decrease your staff turnover, and help to maintain the prosperity of your business. After all, a great employee is one the best assets you will have.



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