A major shift has taken place. Employees today have a new mindset when it comes to work—and their expectations for employers and the overall employee experience are higher than ever. They’re putting in long hours, sacrificing time with family and friends, and they want to know, “What’s in it for me?”
Having worked at both large and small companies, I’ve seen firsthand the impact of professional development opportunities—whether they’re offered or not. I know from experience that nothing made me feel more valued than the chance to learn new skills. Especially during times when raises weren’t on the table, training and development showed me that the company believed in my growth and potential.
Investing in employee development is now essential not only for attracting and retaining talent but also for shaping a strong employer brand. Yet, for years, the value of training has been overlooked by many. But times have changed. According to Gallup, disengaged employees are easier than ever to poach.
Do you really want to be stuck constantly rehiring and defending your talent?
The pandemic has shown the necessity of investing in employee training. Buzzwords like “upskill” and “reskill” aren’t just trends—they’re essential strategies for staying competitive.
It’s simple: companies that don’t invest in their people will be left behind.
Curious about why investing in training is so important? Here are seven key benefits of giving your employees the development opportunities they deserve.
What are the Benefits of Investing in Employee Training and Development?
1. Training opportunities increase employee retention.
Many workers want more than the traditional compensation plan and incentives. The quit levels during the pandemic showed us that. The top reason for their departure? It's a lack of training and career development opportunities.
This is obvious enough– people are likely to stay in a given position when they feel supported and encouraged by their organization. Employees with a better understanding of their job will also have higher performance. Worth noting here is that development also greatly increases job satisfaction and loyalty. All in all, a good recipe for a positive employee experience.
2. Training (even re-training or “reskilling”) is cheaper than replacing.
Training and retaining existing talent is generally much more cost-effective than it is to bring on new hires to replace them. (Many companies learned this lesson the hard way during the pandemic when employees quit and the appropriate talent pool was slim).
It is estimated that the cost of replacing an employee in the U.S. is roughly one-half to two times the employee's annual salary. When you pull out a calculator and start playing the numbers game, even $2000 a year in training costs doesn’t seem like such a financial burden in comparison.
Aside from any direct expenses, a high turnover rate significantly affects the morale and productivity of those who stay, not to mention, the company’s ability to attract new hires. Think about it, would you go to a company where you knew the employee turnover rate was high?
3. Regular training and “upskilling” are a must for keeping current with market changes.
Worrying about getting ahead in the market shouldn’t be your only concern—what about not falling behind? In today’s world, rapid conceptual and technical advancements are happening across every sector. It only takes a moment for something unexpected to disrupt business as usual.
According to PwC’s Global Workforce Hopes and Fears Survey 2024, fewer than half (46%) of workers believe their employer provides adequate opportunities to learn new skills that would benefit their careers.
Now more than ever, it's crucial for businesses and professionals to ensure their work reflects current best practices. Regular training not only helps your teams stay ahead of the competition but also ensures your business remains adaptable to market changes.
When employees receive training to enhance their knowledge and skills, they’re better equipped to excel in their current roles and prepared to take on new responsibilities. Upskilling allows them to master the latest tools and practices, making them more competitive and capable.
In fact, skills are in such high demand that companies are increasingly hiring for skills over industry experience or formal education. To keep your people happy and committed, it’s essential to keep their skills up to date.
4. Training employees improves the entire business— performance, employer branding, and workplace experience.
Ok, we’ve covered that it’s cheaper to retain employees than to bring in new people. So when it comes to filling an open position, training a current employee in a new skill and moving that person between roles or departments is a potential cost saving.
Skills training also increases transparency between departments, can break down silos, and most importantly, ensures that various teams are working together towards core business objectives. Offering comprehensive training programs was found to increase revenue by 218% per employee.
More than that, though, equipping an employee with the skills to take on more or different responsibilities is a fantastic opportunity to enhance the employee experience at the company. Employees want to feel valued and appreciated. There’s no simpler way to recognize someone than to put resources and effort behind their development. It says, “we care about you and your career.”
Integral to an employer’s brand, the workplace experience informs potential new hires of the character and culture they can expect from your company. Training and development investment is crucial for attracting and retaining employees.
5. Professional development training is easier than ever before— thanks to e-learning, webinars, and virtual classrooms.
The hybrid workplace presents new challenges for learning and development. Companies need to be flexible and inclusive, therefore L&D teams need to think beyond traditional classroom training.
No longer a niche segment, and now expected to hit $200 billion by 2024, the e-learning industry is booming. It’s easier than ever before to train and develop people, no matter the budget, physical location, or time commitment.
Online training programs bring numerous advantages, many of which are highly applicable to any industry, business, and employee. Some of these include:
- Prompt feedback
- Cheaper than traditional training
- Provides a new learning multi-media modality
- Interactivity, including gamification
- Accessible and flexible
- Adaptable to different learning styles
- Can be self-driven and self-paced
- Can incorporate collaboration and community building
- Results are easy to measure and report
- Easily scalable to include more employees no matter their physical location
6. Training’s learning gap from the classroom to the office is shrinking.
Often referred to as “training transfer,” the road between knowledge gained in a training course and implementation of that knowledge into the workplace has, historically, been a bumpy one.
No longer is training simply a lecture. Providers are constantly innovating and mixing it up with real-world exercises, and physical and virtual experiences to link the theory back to the workplace. And even better, these innovations help to keep students interested and engaged.
Today, it is just as easy to learn online in some form as it is on-site: learn via a 2-day seminar with case studies or 10-minute micro-learning sessions at your desk; learn via gamification/VR or in a room practicing with others.
Training today emphasizes practical takeaways specific to particular responsibilities or certain roles.
7. Skills training increases employee well-being.
A lack of training and development can have a significant impact on a person’s engagement and ambition. When the average person spends 90,000 hours of their lifetime at work, it’s safe to assume that work can strongly impact a person’s mental state.
The findcourses 2022 L&D study confirms the strong and positive correlation that exists between learning and wellness… and between training spend and motivation.
When a company promotes a learning culture, employees feel valued and appreciated. They are more engaged and satisfied. In general, they are happier. And happiness breeds positivity, team spirit, collaboration— all the “good stuff” that’s key for any successful workplace.
Competition for talent is stiff. Promoting a workplace culture of learning as the foundation of a good employee development program is critical to enhancing the employee experience, as well as keeping the business nimble and competitive.
Future-proof Your Company With Skills Training
findcourses.com lists thousands of training courses in broad and specialized categories.
