Human capital is the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.
Providing ongoing training not only helps your employees perform their duties with more efficiency, but it also adds to their satisfaction and fulfillment within their job. To this date, when performing exit interviews I have never heard an employees reason for leaving was excessive training and investing too much into their career development. Unfortunately we do a poor job giving our employees the foundation of training it takes to succeed?
I do believe that a small percentage do a good job in this area, but the large majority within our industry fall below the minimum acceptable level.
Here are a few benefits to having an ongoing training program
- Reduce cost of turnover – A recent survey indicates that 40 percent of employees who receive poor job training leave their positions within the first year.
- Enhanced company image – Your customers are able to “feel” the culture of a business. A culture of a turnover-laden business does not increase customer satisfaction; actually it will directly affect you negatively. An enhanced company image will help you retain additional customers and employees.
- Increased employee motivation and efficiencies in processes – Quite often after a training session, I will have an employee come to me with a proposed solution to an ongoing problem or process that will improve customer satisfaction. There have been many times when the proposed solution was not implemented, but at least I know where the frame of mind was for my employee and they were looking for ways to improve our business.
- Increased professionalism – You never get a second chance to make a first impression and again this holds true here as well. Especially within our business we could use a little shot in the arm to up our professional standards.
- Increased sales and profits – This is one that does not happen immediately after a training session, so don’t loose sight of the end goal. Although not immediate, it is proven that someone that is properly trained will yield greater success within his or her career.
The greatest preparation for the future comes from planning and investing in your people. The best and most effective way to do this is develop a well-rounded training program.