Benefits of Training
Training of workers and the staff is an enterprise building process aimed at empowering and enabling the staff with necessary abilities, skills and behavioral competencies, for the purpose of improving the results of job performance for the individuals, teams and the enterprise. Training is conducted for freshmen from college newly selected for a position. It is called induction training. It is to familiarize and get to know rules and job processes. Know how updation training is also popular. It helps update the person on new processes and changes. For experienced staff there is refresher training. Development of staff is the continuous evaluation,coaching and hand holding for honing skills and abilities of all employees.
- Costs incurred in training are to be capitalized and written off over a period of five years.
Cost benefit analysis can be done and most training programmes give a ROI of at least thirty to forty percent per anum. There is direct improvement in productivity leading to additional profits, reduction in wastage of raw material and greater customer satisfaction.
- Training improves job satisfaction and helps employee to do innovation and solve problems.
This results in better service delivery which helps in getting repeat orders and retaining customer loyalty.Employee turnover comes down because of improved job satisfaction.
- Training helps employees minimize human error and hence cost of warranty claims is reduced.
Better quality helps improve image of the company. People talk about a firm that gives quality product and word of mouth is free publicity for the company. This helps build a strong brand image. Untrained workers prove costly in the long run. They remain dissatisfied. They make costly mistakes resulting higher manufacturing and service costs.
- Trained workers require less supervision, thus helping a lean and flat organizational structure.
Workers are ready to take higher responsibility and challenging assignments. Thus a positive climate is created in the work place.
- Trained employee is ready to utilize full potential which generally remains hidden.
This helps improve the capability of teams and departments. Unleashing hidden potential and hidden talent is an important contribution of employee training.
- Training can make employee multi skilled. Because of globalization, the skill requirement is changing constantly and a multi skilled employee can be employed in a flexible manner.
Multi skilled workers can bring higher productivity and cost of wages can be reduced, thus improving profitability. They will have problem solving ability resulting in improved plant efficiency. Multi skilled employees will be assets to any team, as they can take care of manpower shortages and absenteeism.
- Trained employees can learn and adopt technological changes faster.
In the era of rapid technological changes, continuous employee training is a must as there is no other alternative. Training also improves the working climate and the work culture. Morale of the whole work force is up. In some cases training opportunity is seen as recognition and reward for dedication, hard work and loyalty. The employee retention is enhanced and as a result cost of recruiting is reduced in the long run. This is one way to improve employer- employee relationship.
- These days companies strive for improving market share, by having a competitive advantage over the rivals.
Employees contribute to competitive advantage by thinking out new processes, changes in manufacturing and handling, developing new designs and methods. A trained employee can contribute to competitive advantage by thinking innovatively and sharing ideas with other employees and teams. Thus enterprises that train employees regularly are better prepared for competition and for changes inconsumers needs. Hence the training cost is a sound investment for future success.