The latest MOM survey revealed that almost half of all employers do not send staff for training. One commonly reason cited for this is a belief that external training is unnecessary. Another is budget and resource constraints. These imply that training is seen only as a needless cost. This runs counter to the growing importance of employee skills in the face of globalisation and technological changes today.
You may want to ponder over this. A study by the American Management Association found strong correlation between training and profits.
Companies that increased their training after changes in the organisation reported 63% higher productivity and 69% higher profits.
In contrast, companies that did not increase training after such changes observed only a 34% productivity increase and a 40% profit increase.
Singapore itself is replete with examples of companies that have increased their productivities and profits with training. For example, CIBA Vision shortened manufacturing processes by at least 60 percent through productivity training.
Most experts agree that training can lead to profits in the following ways:
Boost employee competence in record time
By fast-tracking the employee learning process, staffers become productive sooner and may avoid costly mistakes that can occur when they have to learn on their own, on the job.
A better brand name
Offering your employees opportunities to grow their skill sets shows that you care about nurturing them. This in turn creates a better brand name for your organisation. It is also a smart strategy to attract talented employees.
Retain talent
Staffers who leave take with them valuable experience and even customers. Providing training makes them more likely to stay with you by building loyalty and a sense of identity. The Ritz-Carlton which was named Best Employer in Asia and Singapore for 2011, speaks volumes of this phenomenon.
Do you agree that training leads to profitability? Email us your views to WDA_Corporate_Communications@wda.gov.sg
If you require assistance to send your employees for training, you can visit WDA’s website for the schemes available.
WDA has kindly agreed for us to re-publish this article. It was first published here.