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Driving productivity and engagement while improving employee satisfaction and slashing turnover is on every manager’s wish list. The solution might be as simple as implementing employee training programs.
The benefits of formalized training programs are numerous, whether looking at the immediate benefit of employees with renewed energy and newfound skills or the long-term impact through decreased turnover and improved employee satisfaction.
Aberdeen’s Workforce Management and Training report released in October 2012 highlights these benefits below:
- With Change Management Buy In, organizations with formal training programs have increased senior executive buy-in and support (74% versus 46% respectively) creating an environment of support versus apprehension to change by influencing key internal stakeholders from the top down.
- Employee Retention improves significantly with formalized training programs at a rate of 72% versus an informal training program of 59%.
- Employee become more Engaged (41% engagement rate) when the training program is clearly mapped, planned and predictable
Increase Employee Retention with Hard & Soft Skills Training
Impacting employees’ skills and knowledge can be accomplished through Hard or Soft Skills training. Hard skills refer to more tangible, measurable skills such as with software or machinery while soft skills encompass professionalism, networking and communication.
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Both Hard and Soft Skills trainings are beneficial, but hard skills training can also fill a recruiting need when a company requires an influx of specifically skilled workers. Instead of external recruiting efforts, organizations can focus internally at its current workforce through career development opportunities which mutually benefit the employee as well as the organization’s bottom line.
An example of hard skills training would be by providing a group of employees an Advanced Excel Course. After course completion, these employees would receive opportunities to utilize their new skills and serve internally as the company’s Excel Guru’s. The training is provided free of charge to the employee, benefiting his or her marketability and providing new opportunities to engage with leadership and the organization without a formal promotion. Everyone comes ahead a winner; the employee feels valued and the organization reaps the benefits of having highly skilled employees.
Cut Once Measure Twice Using Human Resource Formulas
Organizations can also measure the benefits of hard skills training by using two of the most important — and often overlooked — business and human capital employment metrics. Many skip ahead to calculate the cost benefit or focus strictly employee retention forgetting the power in numbers, big data, formulas, and measurements. Instead these numbers should be evaluated together, combined with employee engagement numbers and trends as detailed in your organization’s annual workforce and employee survey.
- Cost-Benefit Ratio = Total Benefit ÷ Total Cost
- ROI = (Total Benefit-Total Cost) ÷ Total Cost
- Monthly Turnover = (no. of separations during month / avg. no. of employees during month) x 100
These can be measured on a micro level in looking at trends and data by department, manager, location, job title, or pay band within an organization to help uncover anomalies or special areas HR and senior organizational leaders should address right away. Bottom line HR metrics are important in gaining senior management buying to your employee training retention efforts.
So cut once and measure twice to lower employee turnover and other related expenses.