What is the cost of not training an employee?
Providing training and development opportunities for your leaders, managers and staff is an investment in your company as a whole. It is also a key to driving your desired culture and improving performance. However, organizations often see training as an expense rather than an investment. But do they know the cost associated with not training an employee?
In his book, “The great principle of management” Michael Leboeuf says:
“If you believe that training is expensive, it is because you do not know what ignorance costs. Companies that have the loyalty of their employees invest heavily in permanent training programs and promotion systems.”
Money spent on training for your staff will save you far more in the future. Check out the below statistics on the importance of training your employees:
- 35% of millennials consider comprehensive training and development programs as the top benefit they would want from a company.
- Employees who feel they cannot develop in the company and fulfill their career goals are 12 times more likely to leave the company.
- Companies that invest $1,500 on training per employee can see an average of 24% more profit than companies that invest less.
- In a study of more than 3,100 US workplaces, a 10% increase in educational development produced an 6% gain in productivity.
Additionally, training and retaining current employees is cheaper than hiring new ones. Hiring someone can cost up to 30% of the job’s salary which for an employee that makes $40,000 a year equals $12,000 to hire someone new. Without training, employees tend to feel unappreciated and like they have no purpose which can lead to turnover or poor performance. It is far more cost-effective to train and retain your employees than having to hire new employees year after year.
The evidence is undeniable. It’s essential for organizations to train their employees in order to attract, retain, and engage talent and increase their productivity. So, you might be thinking, “now what?” If you’re interested in learning more about training Exude is here to help!
Our trainings are interactive, activity-oriented and provide learners with tools and resources to support immediate implementation of new skills with the goal of building competence and confidence. If you’re interested in learning more about our training curriculum, click here or contact us today!