Over time, we have seen that unemployment due to the the economic crisis and the decrease in job availability have caused employees and potential employees to extend their training periods. This is intended to make them more employable and increase their knowledge in order to take on new responsibilities in the workplace. However, many people question if employee training is really just another expense or a long term investment.
Many organizations are already realizing that it is a priority to designate a part of their annual budget for training projects as it results in multiple advantages which we will discuss a bit later on. Here is some data which will help us to better understand the trends in training employees and employee candidates.
The Randstad Report on Training Trends from last year maintains that 72% of all companies provided a budget for training purposes and 19% proposed to increase their budget in 2014. With regards to the investment, the budget utilized in 2013 was 43,000 Euros per company. With respect to the methodology used, companies preferred using in-person training by 97% with e-learning at 67% (keeping in mind that the methods were not used exclusively but rather complimentary).
However, not all the data is positive as we are still unclear about how to quantify the return on investment within the field of employee training: according to a survey by Adecco Training, measurement methods and tools are deficient. Companies have to consider how the attendees are receiving feedback on their training. 63.8% of companies are concerned with the return on investment from employee training as opposed to the 36.2% that show no concern. The most common formula for measuring such return continues to be customer satisfaction surveys given to students.
Advantages of training:
1. Personal and professional growth for the employee or potential employee: gaining new knowledge will enhance the employee´s growth potential and will prepare them for new challenges. It will also help the potential employee by improving their chances of finding work.
2. Increases motivation: offering training courses or personal development plans demonstrate the company´s commitment to their employees and re-enforces the message that the company values its employees and counts on them. This provides motivation and a sense of security for the employees and increases job satisfaction!
3. Fosters equal opportunity: According to the European Center for the Development of Professional Training, the main reason that investing in training might be insufficient is that companies don´t allocate funds to training part time or temporary employees as much as they do with employees who have full time or long term contracts. If companies change this practice, they will foster equal opportunity for all of their employees.
Among the personal advantages of receiving training at the company level are social integration, active participation and improvement in employee efficiency.
Advantages of company training
1. Increase in company productivity. Various studies that have been carried out in countries such as Denmark, Italy, Cyprus, Norway and Sweden suggest that continued training programs foster positive results when they are complimented by other measures such as the application of new technologies or re-organization in the workplace.
2. Long term company competitiveness: If there is an improvement in skills and abilities, productivity will improve and therefore competitiveness will also increase in the long run. Increased productivity can boost long term economic growth.
3. Increase the possibility that employees will remain with the company. If you take care of your employees, they will reward you with their dedication as they feel valued when they see that the company is spending money on their training. This is where the question arises as to whether employee training is an expense or an investment. We´ll leave you with this thought.
Other advantages for the company include the opportunity to strengthen and transmit the company culture; or demonstrate flexibility and adaptability within the workforce.
At Wonnova we understand that companies are looking to offer quality training while promoting attention, participation and interaction amongst the employees. With Woost Training, you can gamify your training sessions in order to achieve maximum results! Don´t hesitate to contact us to find out more about our new technological solution:
Try out this new experience with our Free Trial