10 benefits of training and development for your employees

What is Training and Development?

Training and development programs usually involve a range of educational activities and processes to help improve an employee’s knowledge in their area of expertise. They’re often used by business leaders and HR professionals to enhance job performance, create more motivation among staff to do a good job, and to give them the knowledge they need to get further in their careers. Often training and development is led by a company’s human resources department and can be aimed at employee learning and development, and management training and development – both of which are vital to ensure the smooth running of your business.

Employee Learning & Development

This is the most common type of training offered in the majority of workplaces. At the very least, most employees can expect some level of initial training when they start their new jobs, and the detail and time taken to guide your staff at this stage can have a major impact on how well your employees pick up the job, feel comfortable and confident, and make a running start helping your business grow.  However, training and development shouldn’t end in the probationary period, and regular investment of time and resources into helping your staff upskill and grow at all stages of their career can have multiple benefits for them and for you as business owners.

Management Learning & Development

A sometimes overlooked element of training planning can be the training provided for managers and leaders in your business. For anyone in a people-management role, the importance of training and development can’t be overstated – as it’s up to you to ensure the people in your teams perform to their best potential, as well as you yourself. In a recent study by the Office of National Statistics, a direct correlation was found between the quality of management practices and training sought, with businesses with higher management scores far more likely to seek formal training for their leaders. Poor management practices include taking no action to improve when concerns are raised, consulting internally to solve problems instead of seeking expert external advice, or trying experimental and unproven methods to improve performance. If your business isn’t engaging in meaningful and regular formal training for your teams and your managers, then you may be at risk of being overtaken by competitors who are.

What is the major purpose of learning and development?

Learning and development benefits are varied and are vital for business success. The fast-paced and ever-changing business world needs training and development programs to keep up with new challenges. Employees are considered to be the most valuable asset of a company and investing in their training further enhances their capabilities and productivity. There’s a huge amount of benefits that companies gain by focusing on training and development in their strategic business plans. You have the obvious benefits of sales and product knowledge training which in turn leads to increased revenue and market share, service training leads to better customer service experience and brand loyalty, and innovation training generates new ways of thinking, potentially leading to new products and services. But let’s look into 10 specific benefits of training and development that can positively impact your business and give you a competitive advantage in the corporate world.

Training and development benefits

1. Higher employee satisfaction and retention

Training has been found to link with improving job satisfaction and employee intention to stay in a company. It has a direct impact on motivation which reduces employee turnover and increases productivity. This leads to more profitability. Investing time and money in employees makes them feel more valued, leading to a positive relationship between the company and employees. Higher retention rates and lower staff turnover is crucial for the success of your business. Another thing to remember is that the cost of retaining existing employees is much less than replacing them and having to retrain someone new. So if you’re showing your employees that you want them to grow with the business by investing in their learning and development, they will be more likely and willing to stay for the long haul.

2. Increased productivity and efficiency

It is no surprise that one of the benefits of training an employee is that it leads to more productivity in the workplace. By making sure that necessary training is given to employees to improve their skills, the company is, in turn, ensuring a higher productivity rate. Well-trained employees show both quality and quantity in performance – especially if training is given regularly to help them develop and become more efficient as they grow in their careers. This leads to less time, resources and money wasted for your company.

3. Ability to react to industry changes

Regardless of your industry, it is essential to make sure that your employees are up-to-date with any industry changes or developments. Ongoing training can help you do this without being on the back foot. This kind of proactive training helps your entire workforce stay aware of what’s happening in the industry around them, therefore keeping you one step ahead of your competitors at all times. It also makes sure your business complies with any industry regulations that might have been introduced since your staff were onboarded.

4. Better quality of service

With an engaged and more knowledgeable workforce, comes a natural byproduct; customer satisfaction! Whether your business is strictly customer-facing, deals with client relationships, or simply requires different teams to work together effectively, the more informed your employees are, the better the service they’re giving.  We’ve all been on the other end of a low-energy, low-effort interaction with someone whose help or expertise we were relying upon. We know that this can cause frustration and dissatisfaction among your clientele, as well as putting pressure on already overwhelmed staff. By investing in the confidence and expertise of your valued employees, your valued customers will also reap the benefits.

5. Improved promotion and progression opportunities

We all know too well that the cost of recruiting new employees often involves a lot of hidden additional costs. With the implementation of training, your existing employees become more eligible for internal promotions, therefore cutting down the need for recruitment in the first place. Another advantage of internal promotions is that, unlike new employees, your existing employees have better insights about the business as well as the required skills for the new role. They are people who you have already built trust with, and they already know how the company operates.

6. Happier company culture

When highly engaged employees are challenged and given the skills to grow and progress within their chosen career path, they are more likely to be energised by new opportunities at work and satisfied with their current company. Investing time, energy, and resources into your staff development is a direct signal to show your staff that they are valued – something that is a huge motivator for many people, regardless of their seniority or level of expertise. The more valued your staff feel, the more happy they will be at work and the better the company culture will become.

7. Gain a competitive advantage

One of the main challenges of a company is to stay ahead of its competitors. Staying ahead of the competition is crucial, and understanding the latest trends in learning and development can be a game-changer. Do you want to be the company that does the bare minimum to grow their offering alongside their employees’ knowledge and skillset, or do you want to go above and beyond?  Training and development can play a big role in making a real difference to your competitive advantage. By making sure that employees are constantly progressing, the company automatically gains more value and continues to move forward with a strong position in the market. If you can make your team stronger, more knowledgeable and a force to be reckoned with – the strategies you have in place will be even more effective.

8. Attract top talent

Every company wants the best employees for a greater chance of success and innovation. And what’s the best way to attract top talent? Training and development. To attract new talent to the business you want to make sure that candidates are fully aware of any training and development plans you have set up – since it is a key feature people usually look for during their job search.  Training incentives create a positive image for the company, and this has an impact on potential candidates for future job vacancies. So if you want the best people in your business, you need to show them that you care about their progression before they’ve even started their job.

9. Keep on top of the latest technology

Investing in the latest technologies is essential for business growth. Technology is constantly evolving, and companies need to ensure that employees are using the latest technology at its full potential. If applied correctly, it can increase revenue and significantly reduce costs. Making sure time is set aside to allow employees and team leaders to read up on new tech, to test and learn new ways of working with it, and to share that knowledge with the team will be a guaranteed way to ensure success. Putting in place dedicated sessions to discuss new ways of working with developing tech is a way to keep teams interested and accountable for their own learning and development.

10. Meet legal requirements

In certain fields, investing in training and development for staff isn’t just a beneficial thing to do for your teams, it’s something that’s legally required. There are a number of statutory training requirements in the UK, for example, the Health and Safety at Work Act 1974 which must be attended by all staff to ensure their work environment is safe and compliant. In certain sectors there may also be mandatory training required to ensure safety measures are met for example for those working in the manual handling of machinery, those who work with children or vulnerable people, or those who work in medical fields. In these cases, keeping on top of learning and development goes beyond a ‘nice to have’ and becomes a necessity.

Ready to help your staff learn and develop in their careers?

If you’ve been inspired by our top 10 reasons to invest in learning and development for your teams and need additional help with ideas on how to make this a reality in your workplace, our guide to learning and development will give you a brilliant starting point. Employment Hero is one of the world’s leading all-in-one HR, hiring and payroll platforms. We empower over 300,000 businesses worldwide to help them spend less time on admin so they can focus on what matters most – their people. To learn more and find out how we can help you improve your learning and development offering, get in touch with our team today.