What are the top 5 reasons for training or skill development of employees?
As the technology landscape is advancing, the demand for skillsets in new-age technologies is sky-rocketing. Since the onset of the pandemic the new-normal has completely altered the work culture. In such a scenario, employees need to be equipped to function at new-age workplaces. This necessitates the training and skilling of employees. As per a Gartner survey of 113 learning and development leaders, 71% said that more than 40% of their workforce need new skills due to changes to work brought by the pandemic.
Hence, training and skilling has come to the forefront of organizations’ continuity plans. Today’s young workforce value such opportunities that allow them to continuously learn. They seek investments in their growth journey, which defines their experience as employees, and is also a showcase of the company culture.
Following are the benefits that organizations can reap out of skill development and training their employees:
1. It increases employee retention
When employees are not presented with enough learning opportunities to move up the corporate ladder, they become dissatisfied with their current job role. This can be avoided by creating avenues for employees’ training and development. This not only enhances their productivity by equipping them with more skillsets but also improves employee retention as they feel recognized and valued.
2. It bridges the skill gap and makes employees future-ready
Industry leaders have found that a cost-effective way of addressing skill gaps in an organization is by upskilling and reskilling of the current talent, rather than hiring new resources. Since the current employees have already spent time with the organization, they are well versed with its culture and brand ethos. Hence, they do not require any additional time to adjust and start performing in the new role as soon as their training period is over.
3. It promotes teamwork
Training and skilling of employees promotes bonding and teamwork as it enhances employee retention rate. When new resources enter an organization, they lack social relationships with existing employees and take time to build them. This process not only disrupts teamwork but also adversely impacts the productivity of a team. In addition, not every new hire would fit in to the existing work culture, causing long-term disruptions to efficiency.
4. It increases customer satisfaction
There’s a well-known saying – ‘happy employees lead to happy customers’. When employees feel that their organization is invested in their training and development and actively creates avenues for their growth, they feel a sense of belonging towards the organization which in turn enhances employee loyalty. Often, such employees try to give back to the organization by performing their jobs with utmost dedication and sincerity.
5. It enables organizations to build a competitive edge
The worst loss that organizations have to endure due to attrition is the loss of knowledge and experience. Employees with vast knowledge and relevant skillsets enable an organization to build a competitive edge in the market. However, when such employees exit the organization its growth and profitability gets adversely impacted. As per a LinkedIn survey, 94% of the employees would stay at companies longer, if their organizations took an active role in their learning and development. Another industry study goes on to reiterate this point saying “highly engaged people are 87% less likely to leave their current companies”.
In conclusion, employees need the chance to progress, and they expect their organization to have a strategy in place for their growth and progression. When employees are offered good opportunities to learn and grow within their current roles, they’re more likely to stay engaged and loyal to the organization.