How important is employee training?

On-the-job training is still a viable option because of the quickly changing technology landscape. Companies may maintain a pleasant work environment and foster a sense of capacity and empowerment among their workers by giving them the knowledge, resources, and assistance they need to succeed in their jobs. 

According to a British study, production rose noticeably by 6% when the proportion of employees receiving training rose by 10%. Similar results were discovered in a German study that indicated productivity rose by.76% for every 1% increase in the number of employees receiving training. When taking into account the opportunity cost of having employees take time away from their regular work schedule for training, one Portuguese study from the middle of the 1990s looked at the effect on productivity in a number of different organizations. According to this analysis, these businesses' return on productivity was still significant at 8.6%.

Why is employee training important? 

• By attracting and keeping top talent, providing on-the-job training promotes productivity and improves morale.
• Aids businesses in identifying employees who deserve promotions.
• Increases employee engagement by dividing up their workday.
• Reduces costs for the business by enhancing the skill sets of current employees.
• Increases employee loyalty to the organization by making them feel valued and by making development investments.

The case for employer-funded employee training is strengthened when taking into account the competitive job market of today. Businesses that don't invest in human-centric retention methods like employee training will fall behind as worker expectations rise and the biggest U.S. companies weaponize perks in the race for top talent.