The issue: Companies arena investing In their employee’s education and/or training as they did prior to the “recession. ” When companies struggle through economic downturns, much like the one we are experiencing now, the first Instinct Is to start slashing the operating budget and managers and employees are asked to do more with fewer resources. The economic outlook for the foreseeable future in our country shows businesses will continue to cut costs and make tough choices in order to survive and stay competitive.
While the belt tightening continues, so too will the imitation to cut training budgets or eliminate them all together. It’s been my experience that one of the areas hit hardest by budget cuts is the training function. Training, In some Instances, Is often thought of at times as a luxury or “nice to have” in organizations. It is an expense worth paying for when times are good, but an easy target for elimination when times are bad.
Companies who have established formal training departments, however, see the benefit to operating an education arm of their organization because they understand how training maintains or increases performance in their employees. They understand there Is a science behind training and adult learning. After all, It is the employees that help make the organization run. Poor performance on their part could mean poor performance for the organization as a whole. The cost of employee turnover due to poor training or cuts to employee training, results in higher costs to employers. These costs are due to employee turnover.
According to Dolomite’s 2010 Ethics & Workplace Survey, one-third of employed Americans plan to leave their current Job and look for a different Job or career once the economy gets better. The mall reason as to why they choose to leave their errant position is due to lack of trust, and clear, consistent communication from their employer; add to this poor training or lack of training opportunities where employees can enhance or develop their skills. The Center for Workplace Excellence has compiled data on how companies who under-train or poorly train their employees suffer from costly high turnover rates.
Costs associated to replacing (or failing to replace) those lost through turnover far out outweigh the costs In further Investment in training. Consider the following: In companies where training is considered good, 12% of employees are considering paving to find new employment or changing careers. In companies where training Is rated poor (or severely lacking), 41% of employees are planning on leaving. The average cost of replacing an employee making approximately $60,000 per year Is more than half that person’s salary – almost $38,000.
The average across the country Is $17,000 in recruiting, screening, interviewing and on boarding costs. Using these figures, it becomes apparent that these costs add up when you have many employees who depart a company whether due to layoffs or voluntary departure, depending on the size of company. Compare this to the costs of regular, ongoing training efforts to maintain performance or develop employees. The average cost of training per employee according to the American Society for Training & Development (EAST) and Society for tots Human Resource Management (SHIRR) a BIBB, Is Detente and $1 , 100 annually.
Training magazine in 2003 estimates training costs are approximately 2. 5% of an employee’s wages. Clearly from these statistics, the costs of funding ongoing training per employee is far less than the replacement cost of an employee. Training keeps the industry strong by having experienced professionals who know he business teaching and tutoring in the most profitable, most industry-standard methods, methods that may have never been brought to the company before. If a company is anticipating cutbacks, the reductions should be in areas that wont continue to negatively affect the company when times begin to get better.
Training the right employees for the right reasons with the right professionals will keep giving dividends long after the recession is a distant memory The primary reason training is considered optional by so many business owners is because it’s viewed more as an expense than an investment. This is completely understandable when you realize that in many companies, training and development aren’t focused on producing a targeted result for the business. As a result, business owners frequently send their people to training courses that seem right and sound good without knowing what to expect in return.
But without measurable results, it’s almost impossible to view training as anything more than an expense. Now contrast that approach to one where training’s viewed as a capital investment with thoughtful consideration as to how you’re going to obtain an acceptable rate of return on your investment. Good training that is objective and performance-based will empower employees to perform to expectations, supporting defined business goals and objectives. When the economy is down, training is more important than ever. Layoffs and Job restructuring shift new duties and tasks to those remaining in an organization’s workforce.
That alone prompts evaluation of current training programs and new training needs that must be met. Times like these are an opportunity to ensure that the existing workforce still engages and continues to work toward meeting an organization’s goals. Despite the negative impacts of economic downturns on our businesses, somewhere within the challenges we face are opportunities for creativity and new solutions to emerge. Training is one of them. My long term is to implement a training program for every department within the company; however, the first program I want to implement is a field safety-training program.
This will be the easiest to Justify and has proven to be the department with the greatest need. “Safety training is a key element in the prevention of work-related injuries, illnesses and death. When educated on safety procedures, employees will now how prevent an incident in the workplace… ” Www. Eh. Com/ about_5270738_importance-safety-training. HTML I plan to have the safety training program implemented within thirty days. Training will begin with an initial “weekend intensive” where a hired safety company will provide a one-day classroom session, and a second-day field session.
In addition, this will be repeated for every five new hires. Weekly “tuck bed” safety meetings will follow this initial weekend intensive course, where foreman will conduct safety quizzes and lectures. The program is very inexpensive (especially in comparison to nee cost AT lemurs) SUE-U a year Tort ten ongoing “truck Deck”‘ equalizes Ana additional safety materials (which can be tailored to us if a specific need or issue arises) and $300 per weekend intensive for up to 20 employees. In my opinion this cost can be easily Justified.
The company will qualify for an immediate discount on our workers compensation insurance, not to mention the reduction of accidents and injuries by offering safety training. Initially we will receive a 5% discount on our workers compensation premiums, and after a having the program in place for a full year we will be eligible to apply for “cost containment ratification” through the State, which will reduce our premiums significantly (by more than 25%), of course this will be in conjunction with minimal injury claims.
In presenting my case to the owner of the company I will provide all of the above facts and explain the safety program as an investment with a large monetary return. In addition to the discounts on premiums, our companies safety program can also be used as a “selling factor” when bidding for Jobs, which may help give us an edge over our competition, which in this economy is a tremendous benefit to have!