Why training employees is good for your bottom line

What does employee training mean?

Employee training is a way for companies to teach their employees new skills that they can use to do their jobs better. Training can include learning to use new software or machines, improving communication skills, or developing leadership skills.

Is employee training the same as learning and development?

Employee training is different from learning and development because it is more focused on solving specific problems that arise in the workplace. Learning and

development, on the other hand, is a broader approach. It aims to improve the overall skills and knowledge of employees.

What are the top 3 benefits of training?

Here are three reasons why you should provide in-house training.

1. Training motivates your team

Robertson says training and developing employees is an important way to attract and retain existing staff.

One of the key reasons people leave a job is the lack of training and promotions. Investing in training drives employee engagement and shows that you care about them.

“Training makes people feel they’re growing and becoming more capable. That’s highly motivating,” says Nigel Robertson

2. Engagement increases productivity

Measuring the return on investment (ROI) of training programs can be challenging. However, a 2023 Gallup study found that motivated staff can:

• increase productivity by 17%
• profitability by 21%.

“It’s about investing in your team—just like investing in a more productive machine,” Robertson says.

A recent BDC study found that human resources management is a key focus for Canada’s most successful SMEs.

They rely heavily on training programs, investing 50% more in staff training and almost three times more in manager training than other SMEs. This highlights the importance of training for companies looking to increase their productivity.

3. Training helps mitigate labour shortages

Training can also help you deal with skilled labour shortages. Offering employees training to improve their skills and fill vacant positions can reduce hiring costs. As a bonus, you will have be hiring people who already know your business.

Learning can also help expand your pool of potential recruits. “Rather than wait for the perfect person to show up, hire a motivated person ready to work up to a new position,” says Robertson.

Hire underutilized labour

Training is a great tool to hire underutilized labour. For example, you can offer apprenticeship programs, co-op programs or internships to integrate young workers. Similarly, training experienced workers could help you keep them in your business longer.

Skilled immigrants are often underutilized in their field because their skills and experience abroad are not recognized. Offering development opportunities to make up for any knowledge gaps can allow you to hire highly skilled employees.

How do you train your employees?

Many training efforts fall flat because of poor planning, execution and follow-up.

The result is training that’s either poorly delivered or irrelevant to your employees’ day-to-day work, or both. “That can cost you both time and money,” says Nigel Robertson, Senior Advisor, Financing Products at BDC.

Here are some tips to get better training results.

1. Set clear expectations

Before registering employees for a class or workshop, decide why you’re doing it. “Employees often get sent off to workshops with no clear purpose,” Robertson says. “Training doesn’t work without a plan.”

Set clear, measurable goals for the training. These should be achievable within a specific timeframe.

For example, you may decide that in two months you want your employees to be able to make a sales presentation and close two out of 10 clients. Their training should then be tailored to meet that goal.

2. Support on-the-job learning

Businesses often make the mistake of relying on formal, classroom-style training. This ignores the fact that most learning happens on the job.

Robertson calls it the 10-20-70 rule. He says employees typically learn:

• 10% of what they need to know in a classroom
• 20% is learned in semi-formal settings, such as mentoring, job shadowing and focused reading
• the greatest part—70%—is learned from experience on the job.

“Almost everybody stops thinking about training after the 10% is done,” Robertson says.

You should make sure employees have opportunities for semi-formal training. They should also get opportunities to apply classroom learning on the job. Workers who don’t have a chance to do so quickly forget what they learned.

3. Give managerial support

You can reinforce learning by meeting employees to discuss what has gone well and what hasn’t on the job. You can discuss ways to improve and how further formal training can help.

If employees get formal training, you should have a general idea of what they learned. This way, you can help employees apply it in their work. You can also encourage them to share their knowledge with other employees.

Avoid these common training mistakes

To run successful training programs, there are some common mistakes that can hinder your progress. Try to avoid the following faux pas.

1. Send everyone

Companies often send the entire team to the same workshops and classes, even when they’re not relevant to everyone’s job. Save money and your employees’ time by making sure to send only those who will benefit.

2. Teach by PowerPoint

Make sure you’re not relying too heavily on presenting information to employees, Robertson says.

One-way communication leads to poor retention of information by trainees. They are likely to forget what they learned after a few days. It’s important to reinforce what employees have learned by getting them to apply it in exercises and drill it on the job.

3. Train on Fridays

Avoid doing training on a Friday or before employees go on leave. Training must be put into practice and reviewed right after it’s learned, Robertson says, or it risks being forgotten.

Do’s and don’ts of employee training

Next step

Discover more effective ways to recruit and retain your staff by downloading our free guide: Hire and Retain the Best Employees.