Five reasons why you should invest in training

The amount employers are spending on training has dropped by nearly one-fifth in the last ten years, contributing to significant skills gaps, according to research published by think tank New Economics Foundation (NEF).

The UK's Recruitment and Employment Confederation has estimated that the knock-on effect of skills shortages is costing the UK economy ￡39 billion a year, with existing gaps exacerbated by the pandemic.

Two reasons employers frequently list as a reason for not investing in training is the cost and the concern that employees will leave and take their new skills with them.

But what about the cost of not retaining talent?

From skills to success: L&D insights for the modern workforce, a study based on survey results from Cypher Learning, shows that nearly half of younger workers would leave their jobs due to a lack of learning and development opportunities.

We’ve outlined five reasons why you should invest in employee training:

1) Improved employee performance

This almost goes without saying, but of course any employee who receives training to further their skills and education will be able to perform their job better. This applies to all sectors, departments and levels of employees within a business.

Through regular training programmes, you may also find that the confidence of employees improves, as they are gaining a much stronger grasp on the industry in which they work, the purpose of the business, and the responsibilities of their own job.

2) Lower staff turnover

A degree of staff turnover within an organisation is to be expected. Many people would even say that it is healthy for an organisation to have fresh talent bringing new ideas to a business. But high staff turnover can mean great amounts of disruption and wasted money.

Investing in training is a far more effective way to spend your money (rather than on recruitment costs). By learning new things that will help their career development, employees will feel more valued, and are therefore more likely to stay loyal.

3) Higher employee engagement

Employee engagement is something that shouldn’t be underestimated. Nor should the impact that a lack of training and development can have on a person’s engagement and ambition.

The majority of employees will greatly value and appreciate the opportunity to learn – they want to work in a place where things feel fresh, rather than stagnant and uninspiring.

If they’re doing the same thing day-in, day-out with no excitement on the horizon, their motivation levels will nosedive.

4) Enhanced corporate reputation

Having a company that is reputable as an organisation that cares enough to provide thorough training and education is great for hiring new employees. A bad review on a company review website such as Glassdoor can negatively affect your company’s reputation. If you are known to have a great training program in place, you will enhance your appeal and draw a wider range of candidates, especially important in today’s competitive marketplace. Also offering employees development as part of the benefits of working for you can help stave off competition to attract and retain your top talent.

5) Knowledge efficiency

Efficient training programs mean that you are able to cross-train employees so that they are knowledgeable in different areas of the business.

By teaching a wider breadth of skills, you are not only developing the employee’s personal skills and increasing employee engagement; you are also being efficient as a company.

Having employees that are trained in a wide variety of things means that you can fill in for absences if you need to. Cross-training also fosters team spirit, which adds to your company atmosphere. Training is also essential in knowledge transfer, as by spreading knowledge throughout all employees, you have support with training future hires and can guard against the loss of skills as employees move on from the business.

All the evidence suggests that investing in training brings advantages for both employers and employees. Starting it from day one and continuing throughout the employee’s career will give the company the best possible outcome to all the points above. Although it may take some time to see a return on investment, the long-term gain will make a huge difference to your company's performance and perception.

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Read the study by NEF - Solving the UK's skills shortage | New Economics Foundation