With unemployment rates at record lows, many large companies are recommitting chunks of their budgets to employee training.
Why? This is to increase retention rates and enable their companies to keep their best and brightest team members.
Yet, small businesses and startups may find themselves reluctant to provide employee training. Let's look at five reasons why not providing employee training costs your startup money.
#1: A more competitive workforce
If you want to be competitive in your chosen category, provide your employees with ongoing training.
When you're able to keep your staff informed and educated on the latest tips and techniques in their field, you have a more competitive startup.
Be strategic when creating your training programs so that all of your training programs work together to benefit your employees and your startup.
#2: Better employee retention
Employee development is the key to employee retention.
It is always easier to keep an employee than to hire a new one, and it's cheaper, too. So, you want to do everything you can to keep your staff.
Your staff wants to see a clear career path, they want to feel challenged in their work, and if they don't have these things, they're going to leave.
Make sure you're providing plenty of opportunities for growth and even advancement to your employees. When you provide ongoing training, you'll see less turnover and a higher retention rate.
#3: Higher employee engagement and productivity
When you have more engaged employees, you'll see productivity climb at rapid rates.
This is because when your employees are engaged, they better appreciate your startup and want to fulfill your mission so their overall productivity increases.
The cost of not providing training is a less effective workforce.
But, when you provide your team with the tools they need to succeed, they feel good getting up every morning for their job. They appreciate the personal growth opportunities and show it to you with higher productivity.
#4: Reduced business costs
Training programs can reduce your business costs, and not providing employee training can raise them.
When you provide ongoing training in the form of educational and developmental programs, you save money on hiring employees.
Many startups find that comprehensive training programs lower staff turnover. This means no job listings, interviewing, hiring, and on-boarding new team members which is an expensive undertaking – somewhere in the tens of thousands of dollars.
Today's employees want training. They want to feel needed, and they want a purpose. Your additional training makes them feel appreciated, and in turn they'll work harder for you.
#5: Happy customers
We've already looked at how employee training creates a more engaged staff. When this happens, you'll also notice happier customers.
Begin with your team. Create a wonderful company culture, nurture and train your employees, and you'll notice they'll have better relationships with your customers.
The best thing you can do for your customers is put your team first and treat your employees well. In turn, they'll treat your customers well.
For startups looking to build customer relationships, engaged employees are the key. They'll help you create brand awareness all while building brand loyalty.
Henry Ford once said, "The only thing worse than training your employees and having them leave is not training them and having them stay."
Ford's statement pretty much sums up why providing employee training is vital to the success of your startup.
So, before you forgo training your employees, consider how much money it costs your startup if you don't provide training. Then, consider your savings when you do provide it.
From lower employee turnover to happier customers, your startup always reaps the benefits of employee training.
Are you a new startup ready to succeed? Are you looking to get your new business off the ground and watch it rise to success? We are here for you. We can help answer your questions and guide you through the process. Outsource your HR duties, finances, payroll and more to us. Contact Escalon today to get started.
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