many owners, traversing the peaks and valleys
of a fluctuating economy is just part of the entrepreneurial
adventure. And when the market takes a downturn,
a natural survival reaction is to cut overhead.
It's a logical place to start. But where and when
do these cuts adversely affect your business?
training often is seen as double overhead because
employee salaries reside in the expense side of
the business, while things such as equipment appear
on the balance sheet as assets. Because the company
invests in training and educational courses, with
the added costs of travel and lost productivity;
employee training is often one of the first things
to go when money becomes tight.
some employers don't consider is that while cutting
these training and development programs may immediately
help lower overhead, the affect of putting employees
on a company backseat can have long-term ramifications
that result in financial negatives.
compete in business today, companies need to understand
that most potential employees are no longer simply
seeking a job; they're seeking career advancement.
However, this advancement does not necessarily
mean promotions; it can be as simple as knowledge
and skills. New-generation employees know career
development requires a commitment to growth. They
seek companies that understand that a paycheck
is only part of the career equation. In fact,
training, education and degree-completion programs
are some of the most desired employee benefits
what does the company have to gain from investing
in employee growth? When a company satisfies employees'
desire to obtain more training, the result often
can be a company team that is more capable and
willing to accept responsibility and control over
the part they play in the company's success. Well-trained
employees often need less supervision, leaving
management with additional time to focus on other
critical areas of the business. In addition, a
well-trained employee generally has a higher level
of productivity, and is more inclined to remain
loyal to the employer that has taken a vested
interest in them.
employees see training as a way to create value
for the company. They know it's the difference
between their company merely surviving and thriving.
In a world that grows ever more competitive, many
employees fear their company may fall behind competitors
and lose market share.
2000, the American Management Association conducted
a survey of 352 human resources executives. The
AMA's findings confirmed that among issues of
top importance to employees were certain enhancement
issues. These issues also had a direct correlation
to increased retention.
in an employee's future is more important than
immediate compensation," said Eric Rolfe
Greenberg, AMA's director of management studies.
"Programs that improve work skills and future
career development are seen as particularly effective."
AMA survey identified the following skill enhancement
techniques (the percentage of companies employing
them as a retention strategy is noted as well):
External conferences and seminars, 78.1 percent
Tuition reimbursement, 67.3 percent
Managerial training, 66.8 percent
Company support for degree, 62.2 percent
Interpersonal skills training, 56.8 percent
Technical training, 54.5 percent
Employability training, 35.2 percent
a study of more than 3,100 U.S. workplaces, the
National Center on the Educational Quality of
the Workforce found that, on average, a 10 percent
increase in work force education led to an 8.6
percent gain in total productivity. While a 10
percent increase in the value of equipment increased
productivity just 3.4 percent.
in employee growth is a philosophy first and a
program second. No matter how strong the training
or mentoring program, it only will be successful
if principal business decision-makers are fully
committed to it. Employee development cannot be
an item that easily hits the chopping block when
times are tough.
you are unsure about where to begin building an
employee development program that nurtures your
employees and creates long-term relationships,
consider an anonymous survey. For best results,
be sure to provide employees time to think about
the questions and provide meaningful responses.
Obtaining information straight from employees
is a great way to increase their sense of importance,
and helps you avoid wasting time by offering programs
that are not valued by your team.
in employee growth can go a long way to creating
loyalty, saving your company money and providing
a platform to reward top performers for exceptional
work. A well-rounded program will put company goals
in line with employee development, and can deliver
a measurable return on investment. We're here to
assist you as you navigate new territory. Call us
to learn more about how skilled employees are one
of your company's most important advocates.