Employees are one of the most important investments an organization makes. Investing in the right people for the job is crucial to the long-term profitability of a company. It cost time and money to hire and train new employees. That is why the hiring process takes time. We want to make sure that the person we bring aboard has the right skills, the right personality and the desire to be with the organization in the long run.
But keeping employees is just as important as hiring the right ones. Making sure that employees are happy and productive is an ongoing process. When starting a new job, most of us have had the opportunity to undergo some kind of training - whether it's to learn how a plant works, why safety is important or a simple welcome orientation. These types of employer-based development opportunities are important to how hard employees work and how long they want to stay with a company.
By training and developing employees, you are empowering them, helping and encouraging them to grow. Research has shown that there are many benefits an organization, both large and small, experience when employees receive training and development opportunities, including:
- Increased productivity and improved performance
- Decreased employee turnover
- Decreased need for supervision
- Increased efficiency
That's not all. Employees also tend to have better self-esteem, increased self-worth and become a valuable asset to the organization.
International corporations, like IBM and Motorola, are strong advocates for ongoing employee training. They believe that by investing in their employees, long-term financial gains will be seen. In a whitepaper published by IMB (IBM Training White Paper, 2008), the long-term benefits of employee training were explored. IMB discovered that:
- According to the American Society for Training and Development, 41% of employees at companies with inadequate training programs plan to leave within a year versus 12% of employees at companies who provide excellent training and professional development programs.
- The cost of replacing skilled employees ranges from US $75,000 to $450,000.
- The average cost to recruit a professional candidate is $18,374.
- Companies in the top quarter in training expenditure per employee per year ($1,500 or more) average 24% higher profit margins than companies that spend less per year.
- According to a Merrill Lynch study, Motorola estimated that every dollar spent on training yielded US $30 in productivity gains within three years
- A company with 1,000 employees can save at least $240,000 per year as a result of an average productivity gain of just three minutes per day
It is pretty impressive how much training employees can do for a company. At Pioneer Engineering, education is one of our passions, which is why we are dedicated to sharing our experience and knowledge. With over a century in combined experience, our instructors deliver practical and hands-on training in the fields of vibration analysis, dynamic balancing, plant reliability and machine theory. All of our courses can be tailored to fit your learning style and are available in both a public and private setting. Whether you are interested in attending our classes at our facility or would like a private class at your site, we will tailor our classes to suit your needs, worldwide.
Benjamin Franklin once said, "An investment in education always pays the highest returns". For companies big and small, the question is not how can you afford to train your employees, but rather, can you afford not to?
About Jessica Dieken
Jessica joined Pioneer Engineering in 2013 and brings a diverse business background to the firm, working for both local businesses as well as Fortune 50 corporations, where she was responsible for developing and implementing marketing and communication strategies as well as client relationship management and advocacy activities. A Colorado native, Jessica earned a double bachelor's degree from the University of Northern Colorado in 2006 and her Master of Business Administration in 2011 from Marylhurst University.
