training and develpoment.docx - Employee Training and...

Employee Training and
Development: The Benefits
and Why it’s Important
Employees are a company’s biggest asset, and investing in talent is vital to
sustainable business growth and success. Businesses go through lengthy
processes to recruit and hire qualified and suitable staff, but often the
emphasis on caring about employees stops there. According to a Gallup
study, workgroups that engaged in employee development saw a sales
increase and profits double compared to workgroups that didn’t engage at
all.
1
Dedicated training and development fosters employee engagement, and
engagement is critical to your company’s financial performance.
Workgroups that engaged in employee development saw a sales increase
and profits double compared to workgroups that didn’t engage at all.
Investing in your staff’s professional development is vital for team retention
to the point that 94% of employees would stay at a company longer if it
invested in their career development.
2
Replacing talent can cost more than
retaining the employees you originally had.
3
A report from Gallup revealed
that 38% of the US workforce is powered by millennials, and in 2025 it is
estimated to grow to 75%.
4
However the rate of turnover amongst millennials
is high – only 50% plan to be with the company one year from now. Gallup
estimated that employee replacement costs can be 150% of the worker’s
annual salary, or more. Caused by a lack of workplace engagement, turnover
costs the US economy $30.5 billion a year.
5
The internal economic detriment
could be brutal, for both small and large organisations. It’s a costly mistake,
and one that can be easily mitigated.
As the business landscape becomes increasingly competitive, improving your
team’s performance is imperative within evolving markets. Employee
development and training is no longer an additional perk reserved for the C-
suite, it’s essential for the growth of your business and the workforce that
propels it.
What is employee development?
Employee training and development is a term often used interchangeably,
across sectors, and encompasses various employee learning practices. More

specifically, training involves programmes which enable employees to learn
precise skills or knowledge to improve performance. Development
programmes involve a more expansive employee growth plan, for future
performance rather than immediate career role improvement.
6
Now, more
than ever, learning and development are taking top priority, with 27% of
organisations preparing for budget increases within development
initiatives.