24 Jun 3 Reasons Internal Training Improves Your Business Profits
Your business is only as good as your people. You’ve probably heard that a million times — but it’s more relevant today than ever before. Technology, customer expectations and industry trends are developing at lightning speed in the dynamic modern economy. And the only way to compete is to ensure your team is up to the job.
Here are three reasons why providing internal training is the key to improving your business profits…
#1. Retain your top talent
Employee turnover is a huge problem for Australian businesses. According to research by PwC, Australian business experience an average of 23 percent employee turnover within 12 months. That puts us last out of 11 developed countries.
And it’s costing us — big. The same PwC study revealed that employee turnover is costing Australian businesses $3.8 billion in lost productivity every year, along with $385 million in avoidable recruitment costs.
So why are we finding it so difficult to retain our top talent? Most employees are — quite reasonably — focused on securing their futures, and if they don’t see a clear career path at your company, they’ll look for one elsewhere.
Providing internal training and development opportunities for your staff will show them that you’re serious about investing in them, and if they feel they have a clear future and progression plan at your company, they’ll be more likely to stay put.
#2. Boost employee engagement
According to a recent Gallup report, only 14 percent of employees in Australia and New Zealand are engaged at work. A staggering 71 percent are not engaged, and up to 15 percent are actively disengaged.
That has enormous implications for your bottom line. Disengaged employees are simply going through the motions. They’ll contribute the minimum possible to your organisation, and are often the cause of customer complaints and lost business. Unhappy employees also tend to have a negative impact on colleague relationships and workplace culture and can spread poor attitudes across your business.
How can providing internal training fight employee disengagement? Developing the skills they need to do their job will help ease feelings of disengagement as their tasks begin to feel much more achievable. And employees who see that you are serious about investing in their professional development will feel more valued and therefore less disengaged at work.
#3. Support innovation
Innovation has never been more important to business success. Rapidly developing technology is transforming operational processes across the board, and customer expectations are evolving at a rate of knots.
To retain and expand your competitive edge, you need talented employees with up-to-the-second skill sets. Training your people in the latest tools and techniques to conquer the digital economy will deliver dividends for your business.
Well-trained employees are more equipped to come up with the innovations that will drive your success well into the future. Businesses that stand still soon fall over, and keeping your team connected to the latest knowledge will ensure you can keep pace with fast-moving developments in your industry.
BusinessBasics can help you implement internal training for improving your business. Contact us now to find out more.