10 ridicuously simple reasons why training is so valuable

10 ridiculously simple reasons why

Training is so valuable

why is training

so valuable?

Wikipedia says;

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The term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching. It forms the core of apprenticeships and provides the backbone of content. In addition to the basic training required for a trade, occupation or profession, observers of the labor-market [who?] recognize today the need to continue training beyond initial qualifications: to maintain, upgrade and update skills throughout working life. People within many professions and occupations may refer to this sort of training as professional development.

Wikipedia® Foundation Inc.

so there…

Ever wonder what the average company spends per year per employee in training?

The average small company spends about $900 per employee per year in training costs.

The average large company spends about $500.

…or 2% of labor costs,

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or about 25 to 50 hours per year per employee of formal training…

according to international workplace education and training studies.

so???

That amount hasn’t budged in nearly a decade… in fact it has actually decreased by 17 %.

It turns out that few employees in general, based on their education are already workplace smart

when they enter the workforce.

However, danger signals are looming.

Statistics show things are slipping and the proportion of staff who feel their

organization is a “Learning Organization” dropped…

from 78% in 2002 to around 50% in 2008.

In a global economy our fundamental ability to compete is based on quality,

innovation and niche expertise, because we can’t win on the basis of low price…

…this is suicidal

Things to do

today…

•Educate•Mentor•Develop Skills•Train

Educating and mentoring teams, mostly to develop skilled sales people and managers is essential.

Small companies who cry out for qualified staff and neglect to train them in career growth are in jeopardy of

net productivity and wealth loss.

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here is why…

Who gets most of the Training in organizations?

Reason #1

10 ridiculously simple reasons why Training is so valuable

44% goes to supervisors, operations staff and in building sales force performance.

Another 30% goes to executive, management functions and management development.

Small companies, because they lack the in-house capabilities tend to spend a lot more per person than large companies to compete in the marketplace.

Clear Correlations

Reason #2

10 ridiculously simple reasons why Training is so valuable

These companies also experience higher customer satisfaction and produce products and services of higher quality than other companies do.

That 20% extra training investment accounts for a 38% increase in quality and customer satisfaction as compared to medium learning performance companies, and a whopping 82% increase as compared to the low learning performance companies.

There are clear correlations between

high performing organizations, those that invest in their

employees.

The message here is clear:

Learning in the workplace pays back more than it costs.

A Learning Organization

Reason #3

10 ridiculously simple reasons why Training is so valuable

Now translate this for your company

What would be the return in $ to your business if you increased your customer satisfaction and quality

by 82%

That’s your number

Divide this by $200 (rule of thumb) per employee and here’s your payback on training.

When you really get this and follow through, you’ll have become a learning organization already.

The Potential

Reason #4

10 ridiculously simple reasons why Training is so valuable

Then, add the following potential results $ values from increased learning: · any increase in employee satisfaction and retention · any perceived workplace environment benefits

· and the effect of other intangibles like better relationships, communication, etc.

The Classroom

Reason #5

10 ridiculously simple reasons why Training is so valuable

classroom workshops, motivational and sales courses, incidental conversations, coaching, mentoring, “lunch and learns” and communities of practice.

The Classroom is still king… in fact, 75%

of training still goes on in the classroom.

These are structured events or programs –

Some experts agree that obsessive web browsing or similar – like online training can cause attention spans to drop to as little as nine seconds – equivalent to a goldfish.

Development Alternatives

Reason #6

10 ridiculously simple reasons why Training is so valuable

It’s now estimated that 42% of the learning that goes on in organizations is informal and the trend is growing.

These figures indicate the increased value of less formal learning interventions, such as coaching, the use of advisors and other development alternatives and are bringing in considerable results.

Retention

Reason #7

10 ridiculously simple reasons why Training is so valuable

Ongoing training keeps wheels turning and has become an essential component of employee retention in any job market.

Outsourcing makes it easy, economical and flexible to customize training to company needs.

A specialist can take into account the duration of in-house sessions, review and give trainees an accurate idea of their time commitment, reflection

absorption, etc.

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Driver of Profitability

Reason #8

10 ridiculously simple reasons why Training is so valuable

How effective is training?

Organizations that make large investments in people typically have lower employee turnover, which is associated with higher customer satisfaction, which in turn is a driver of profitability.

A second driver is manager proficiency – good managers determine if people stay or go, and this is also influenced by training and development.

The education and training variable is the most significant predictor of an organization's success as compared to price-to-earning ratios, price-to-

book statistics, and measures of risk and volatility.

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Survival

Reason #9

10 ridiculously simple reasons why Training is so valuable

The key is contributions in human capital management – in things like leadership development, job design, and knowledge sharing.

Companies that fail to invest in employees jeopardize their own success and even survival.

However, similar to dried up budgets for advertising dollars as a

deadly mistake, training is the one activity that is a necessity.

Various sources: Economic Trends and Research Data, Conference Board of Canada, United States, Learning & Development Outlook Report, International Workplace Education and Training Studies.

Faltering U.S. economy has affected the decision for businesses to do ongoing training

Conclusion?

Reason #10

10 ridiculously simple reasons why Training is so valuable

Conclusion… even learning about learning shows us that we still have a lot to learn.

A recent labor relations study showed that companies that invested heavily in employee training had an increase in stock performance of more than 20% and topped the S&P average by four percentage points over a two year period.

10 ridiculously simple reasons why Training is so valuable review

1. Who gets the most out of training?2. Clear Correlations. 3. A Learning Organization.4. The Potential.5. The Classroom.6. Development Alternatives.7. Retention.8. Driver of Profitability.9. Survival.10. Conclusion…

Thank You!

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