The biggest companies in the world didn’t get there by taking the easy road. In the world of Human Resources, it may seem easy to find a candidate with a spiffy resume and loads of experience, rather than building upon an already existing team. This mentality, however, could be a fatal blow to a business of any size. For now, however, let’s put the gloom and doom aside, and focus on some hard facts about the benefits of corporate training.
Corporate Training Improves Cost Efficiency
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Hiring new employees is expensive. Glassdoor estimates that for every new hire for a small to medium size business, they will lose close to $4,000. If you’re onboarding, multiple employees, these financial losses can quickly add up, doing serious damage to your bottom line.
Worse, this $4,000 does not directly translate to future efficiency. It is a cost that won’t necessarily produce any positive outcomes. Spending on a proven team, however, gives you the opportunity to build on the knowledge that already exists internally. This is one of the reasons why the ROI of corporate training is consistently a proven benefit.
To see the cost efficiency picture in a simpler form, let’s look at the price of training vs hiring. An $80,000 yearly salary plus the cost of hiring, versus a one-time fee of $40,000 to improve the performance of multiple existing employees turns out to be very simple mathematics!
Corporate Training Improves Consistency
New employees require time to adjust, while current employees are already familiar with your systems and procedures.
Focusing time, energy, and resources on hiring is time taken away from creating solutions. Internal training not only adds knowledge to an existing base but also allows for teams to develop a more cohesive sense of internal policies. New hires, on the other hand, have to start from scratch to develop team and company synergy. It’s a simple formula.
But what about the possibility of adding a new superstar to the team? These people do exist, and they may have a tremendous impact on the outcome of a project or company. Yet, while these people are out there, your current employees are likely on the payroll for a good reason. They have proven capabilities, and they demonstrate skills that are vital for company success.
Your current employees do not require onboarding, nor do they require time getting in sync with new coworkers. What this all amounts to is a present level of consistency that can be built upon, rather than disrupting your team dynamic with a new addition.
Corporate Training Eliminates Weaknesses
Team training highlights weaknesses that exist on personal or team levels and then eliminates these insufficiencies in a secure learning environment. With regards to Product Management training, a thorough and well-rounded training program can optimize areas that are in need of improvement.
Teams who go through corporate training together learn to mold their expertise around each other. For example, colleague ‘A’ may be an expert on the technical side of a project but may lack communication skills. Colleague ‘B’, on the other hand, is an excellent communicator without technical ability. From a quality corporate training session, these two colleagues learn from each other’s strengths, while also understanding where to fill in for the other colleague in the appropriate circumstances.
Corporate Training Improves Employee Morale
This is perhaps the most underappreciated aspect of corporate training. Employee satisfaction and happiness are essential for performance and company success. This may seem obvious but companies often overlook the importance of maintaining a happy workplace.
A recent study by the Adler group and LinkedIn states that 72% of professionals find satisfaction in their work, but conversely, 82% of these same employees are open to new positions. How does this translate to corporate training? Companies that offer corporate training often report an increase in employee morale. This improvement in morale leads to employees feeling a sense of value, which in turn inspires these same workers to produce at even higher levels.
Corporate Training Ramps Up Productivity
Employees who feel secure are likely to focus their energy into producing results rather than worrying about their status within their company. Along with the security, workers who go through corporate training no longer have to spend time on learning, but rather can focus their efforts on doing. Therefore, with an increase in overall skill level comes an increase in the number of solutions.