Friday, January 15, 2016
The ROI of Workforce Training
One consistent issue impacting metalforming companies across the country is the lack of qualified, skilled employees. Since it is challenging to find qualified employees, metalformers must make sure to create an environment that encourages their employees to remain loyal. Training can be a key tool to engage, strengthen and attract your most valuable assets – your staff.
Training Engages. As said most eloquently by Doug Conant, former CEO of Campbell’s Soup, “To win in the marketplace you must first win in the workplace.” Winning in the workplace requires engagement. What does an engaged employee look like? Engagement is not tangible, it is an emotional connection. An employee is truly engaged when he is fully committed to a company and its goals. An engaged employee will go above and beyond to ensure that goals are met. He feels loyal to the company and is emotionally connected. Training can be a key part of engagement, he will feel valued because the company is making an investment in him. Improving employee engagement will help your bottom line, as well as retain employees. According to a Gallup poll, companies in the top quartile in employee engagement outperformed those in the bottom-quartile by 10% on customer ratings, 22% in profitability and 21% in productivity.
Training Strengthens. Expending all of your efforts to fill empty positions is short-sighted. By encouraging and assisting your staff to continually grow, you will improve performance. Your employees will become more confident in their skills and comfortable with their roles in the organization. They will be more apt to think of new ideas and make process improvements to keep your company competitive and at the top of its game. By building a team of highly skilled, confident employees your company will not have to rely on a few “star” employees, but instead will have a pool of highly qualified and motivated “stars.”
Well-trained employees also are safer. Good training boosts awareness of safety procedures and will encourage compliance, thus reducing injury. By making your staff aware of proper safety procedures and regulations, you can create a safer work environment and reduce lost-time injuries.
Training Attracts. Is your company attractive to applicants? Investing in training will support your current employees, but also will help attract new ones. By implementing a culture that encourages and supports ongoing training, your company will attract high-quality people. The most skilled and motivated employees want opportunities to grow and advance. They seek out employers who value them and help them grow.
The bottom line. Making money is the proverbial “bottom line.” For those who watch the budget, remember that companies that invest in training have a 24% higher profit margin than companies that do not. That’s some ROI.
Address your training needs with seminars offered by the Precision Metalforming Association (PMA). Our complete Winter/Spring calendar is now available for download.
Sources: Huffington Post, Houston Chronicle, Forbes, Dale Carnegie