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How effective skills development impacts your bottom line

How effective skills development impacts your bottom line

When it comes to the implementation of training and the development of staff members, many companies choose to avoid the subject arguing that:

  • Training is too expensive,
  • High turnover – “We train them and then they leave’,
  • Training takes too much time from production, and
  • There are no long-term benefits.

Thus, for many organisations training is treated as a nice-to-have when there is available funding, but the moment a company runs into financial constraints, the first thing to go is training.

It is apparent that companies mostly focus on the negatives and very seldom look at reasons why training is important.

Training can improve business performance, profit and staff morale. Advantages to your business include:

  • you choose what new skills your workforce gains, targeting skills to meet the needs of your operation for now and in the future,
  • training your staff can result in better customer service, better work safety practices and improved production, and
  • you demonstrate to your workforce that you value them enough to invest in them, improving loyalty and staff retention. In turn, retention is a saving to you.

Training has many benefits for your staff:

  • they acquire new skills, increasing their contribution to the business and building their self-esteem,
  • the training they do, can take them into other positions within the organisation – positions with better prospects and/or better pay,
  • they are upskilled to do new and different tasks, which keeps them motivated and fresh, and
  • because they’re being trained on your time, they see that you value them enough to invest in them. A good company is seen as one that retain rather than continuous replacement.

How would one make Human Resource development worth it?

In South Africa, legislation has forced companies to only focus on compliance training and training that will benefit the company on the BBBEE scorecard.

Yes both are important, but should ultimately not form part of the main reason for training and developing staff members.

When considering what training should take place in the workplace, it is vital to consider the gaps that may be present in the company:

  • lack of productivity,
  • high staff turnover,
  • lack of client satisfaction,
  • lack of innovation and creativity, and
  • lack of motivation and efficiency.

A company that ticks any of the above should, without a doubt, start focusing on the training and development of staff.

With the implementation of training that is relevant to the company’s needs, the company can further benefit financially when it comes to Mandatory and Discretionary funding from the SETA’s as well as possible tax incentives for Learnerships.

Measuring the return of investment when training is implemented, is extremely important to ensure that it contributes, not only to the growth and success of the company, but most importantly the impact the training programme has on the company’s bottom line.

For more information or advice, call Labournet Port Elizabeth on 041 373 2994 or visit www.labournet.com today.