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Twenty-nine per cent of the small business owners surveyed reported that training and development takes budgetary priority over most strategic and operational initiatives. The custom made online training is offering tremendous scope for employee’s development and growth. Once an effective training and development program is established and utilized by the organization it can begin seeing increases and benefits in the following areas: productivity, motivation, quality, job satisfaction, commitment (employee retention), and reduced absenteeism. In order to provide the training and development that reaps these many benefits, it costs money, time and other resources.
In today’s competitive business world, most organizations are looking at ways to reduce expenses in order to increase profits. Research has shown, however, that when employers invest time, money and resources in their employees with training and development the employees develop a commitment to the organization. In contrast, some employees have been known to say they “saw it coming” before they were fired or let go. Training and employee development is not just for the employee but is as beneficial to the employer as well. Roy Barker is Director of Special Projects at Moore Diversified Services, a Fort-Worth, Texas-based organization specializing in operations analysis, marketing development, and investment advisory services.

If you manage this site and have a question about why the site is not available, please contact us directly. To combat this, owners are investing in training and development to create the employees their business needs to thrive. On average, small businesses spend eight per cent of revenue on training and development, and expect to nearly double spending on training in the future (anticipating and average increase of 7.5 per cent over the next two years).
Unfortunately, when training is only looked at as an expense, it can be the first category to go to the chopping block. Are these positions not worthy of training due to the high turnover or is a high turnover due to the lack of training? For those employers that view training as an expense, a trade-off for production or just plain wasted time, they may not have an effective training program in place. It is suggested that businesses need to accurately analyze what these training programs are worth.
Research has also determined that with training and development the employee believes the employer cares about the employability of the employee. In other words, with ongoing training and development the employee does not feel the employer is leaving them to “sink or swim” on their own or that the employer is not “creating” a reason to fire them.

Also if an employer’s turnover is high, they may need to evaluate how they train new employees, evaluate existing employees and what programs are in place to develop employees to be productive members of their organization. While most organizations compile data and trends on advertising campaigns, sales department activities, and other activities that they can directly tie to increased revenue, it can be difficult to determine a Return on Investment (ROI) on employee training and development. Sometimes you may have a talented and capable individual but they are just in the wrong position. Employers that are successful in reducing employee turnover embrace training and employee development as a necessary tool to further their organizational goals. Continued training and development, including evaluations, can determine strengths and weaknesses and what persons fit best with various positions.

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