Training Doesn’t Cost…….It Pays!

I hear it all too often.  “We don’t have time for training” or “we’re a small company so we don’t do formal training but our people know what’s going on” or “the vendors don’t come in to do training for us.”  And then there’s my all-time favorite, “I used to train our staff a lot more, but every time I spent time and money to train someone she left to go to a competitor, so I don’t do it anymore.”  So…. because a trained person left, the associates who stay don’t get training?

Training doesn’t cost.  It pays.

For example, the Container Store invests 235 hours of formal training in every first year employee.The retail industry average is only seven.  After the first year, associates get 160 hours of training. 

The pay-off?  In an industry that suffers from an annual employee turnover rate of 120 percent a year, the Container Store enjoys an 8 percent turnover rate among full-time employees and 20 percent among part-time workers.

 The Cheesecake Factory spends $2,000 per year in training each hourly-paid team member.  Those who want to be waiters get two weeks of on-the-job training with a mentor.  Then, to qualify for server job, they must pass a test and get certified.

Management candidates get a 12-week development course.

The pay-off?  Sales at the Cheesecake Factory double the industry average at $1,000/sq. foot and at just 15% turnover is way under the industry average.

Here are nine reasons for creating a learning environment in your company:

#9 - Improve Morale
Trained associates are more successful.  A feeling of accomplishment in their jobs fuels their egos and self-esteem.

#8 - Enhance Performance
Research has shown that training directly impacts performance. Need to improve your employees' performance? Invest in training.

#7 - Create a Team Environment
Learning together creates cohesiveness.  Using your associates as mentors helps build leadership and camaraderie.

#6 - Achieve Results
We are all striving for better results. Training your team members raises their performance level, and helps your company achieve your goals.

#5 - Build Confidence
Training your people gives them confidence - confidence in your commitment to them and confidence in their own performance.  In turn, they give you confidence in them.

#4 - Reduce Turnover
Trained employees are happy employees.

#3 - Increase Empowerment
Well-trained staff members treat your customers like you would.  They focus on the customer, take initiative and exceed expectations.

#2 - Expand Knowledge
Knowledge is power.  Learning-based organizations know their products, their markets, their customers and their competitors.

#1 - Watch Profits Soar

Well-rounded learning programs are consistent and on-going.  They are creative, fun and motivating.  They provide information about your products, promotions, your competition and customer service.  They are also where you reinforce your goals and objectives, cores values and expectations.

Training creates world-class companies.  Knowledgeable associates are confident, competent and provide better service.  Learning organizations have higher revenues and profits.   They are growing and expanding.

How do you measure up?