Whether training is considered to be an investment or an expense depends exclusively on someone’s perspective. However, it is generally accepted that training is an investment – which pays dividends, on a daily basis. Is this true? Let’s find out. Is this correct? Let’s take a look.
Training is an endeavour undertaken by a business to develop new skills or to enhance the existing ones in its primary staff. Training is more commonly provided to employees and managers – such as management training, but it can be extended to customers and suppliers too. The fundamental aim of training is to provide the necessary conditions for the development of a better understanding of the essential business concepts in the staff, so that they can can become more actively involved in conducting the activities in extended areas of the organisation.
The majority of business coaching experts agree that there is usually a delay between the time of investment in training and the moment when these new benefits become readily apparent in business. This delay varies in duration depending on the kind of investment and the actual scope of the training which has been undertaken. Training is a long-term investment which will rarely pay off immediately; usually the real difference becomes apparent with time. The returns on training endeavours are not realised at any single point in time – they pay off daily, therefore they are regarded as “Dividends”.
Training dividends are not directly measured in monetary terms, but can be noticed in terms of:
1. Increased Productivity – By providing appropriate training, the productivity of the workforce can be increased, empowering employees to be able to set their own targets and achieve them in a timely manner.
2. Improved Communication and Participation – Training greatly helps in the improvement of communication among the staff members of an organisation.
3. Waste Reduction – With training, the workforce is able to understand the effective ways of doing a particular task and the procedures for minimising any wasted time or materials in their activities.
4. Reduced Labour Turnover – Trained and empowered employees are satisfied with the work that they do. This in turn automatically improves the retention of the employees in the business and significantly increases the loyalty of the current ones.
5. Improved Customer Satisfaction and Loyalty – When a customer is satisfied with the products and services of a company – he becomes loyal, and for the foreseeable future he will also be a source of continuous revenue for the company.
So finally, we have found that training is definitely a dividend driving activity! If you want to ensure that healthy dividends are always realised from training, you should conduct every aspect of this training with a decisive aim in mind.
Alan Gillies is the Managing Director of the L2L Group. He specialises in delivering Executive Coaching, Training and Consultancy Services to International Businesses across the World. Want to discover more about these insightful business building success strategies? Get Alan’s essential FREE Business Pack today!
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