Economic turbulence and unpredictable market conditions put pressure on businesses to cut down on expenses while building strategies to increase revenue. The first thing that goes out the window in such a situation is ‘Learning and Development’. There are many big and small companies that realize the significance of technical training and continue to invest in their employees. The biggest benefit that these companies get is employee retention. Leading edge companies understand the criticality of training and development in the work environment.While the majority of companies are still keeping cutting down training as their management strategy for maintaining a budget, these are also the companies that are losing a major chunk of the budget in hiring new staff. The reason is obvious, when management keeps employees’ interests on the back bench, employees start looking for better opportunities. To fill the skill gap within the company, organizations spend a lot more money than they realize in hiring new employees from the external market.Let’s discuss the reasons why employee technical training is an investment rather than an expense.
- Improved Productivity: Technology landscape is never constant and new and emerging technologies hit the market almost every alternate day. To keep up with the changes and ensure a high level of product quality, it is vital to keep the skill gap minimum. Companies with better quality products and timely deliveries have talented and well-trained employees working passionately at the back-end.
|In a recent study conducted by the National Center on the Educational Quality of Workforce (EQW), it was discovered that there was at least 8.6% increase in employee productivity by increasing the employee education level by 10%.|
- Reduced Costs: Billions of dollars are spent every year in learning and development activities and yet it is true that it costs a lot lesser than the expense of hiring and training a new employee. By keeping the existing workforce engaged in technical training, companies reduce their recruitment costs to a great extent.
|Replacing an employee with a specific skill within the first year of hiring cost 21% of the employees’ annual salary to the company.|
The advantages of IT training are multi-fold not only for the employees of IT companies but also for the other industries that use IT infrastructure and applications. Be it healthcare, automotive, banking and finance or manufacturing, every industry with IT as a function, must invest in IT training of their employees.Let’s discuss how IT training helps the individual employee:
- Career Progress: IT training help individuals in their professional growth. As the skill set enhances and grows, there is more opportunity for recognition within the company for higher roles such as technical lead, project managers, etc. Career advancement leads to higher salary and more responsibilities.
- Mentoring: When you upgrade your skillset, you have the opportunity to give them to your organization by mentoring and training other employees. This leads to organizational growth, enhancement skill set of employees and overall improved productivity.
- Networking: When you engage in training, you get to meet other people with similar interests and backgrounds. Keeping an active network with technical people will keep your knowledge upgraded.
IT training need not necessarily put pressure on the deliverables with the advent of online training, on-the-job training, and e-learning models. Professionals can focus on their work responsibilities while sparing some time for training. The important thing that must not be missed is to identify the need for training. A proper learning needs analysis should be implemented to identify the gap between requirement and skill gap before the training is organized and assigned to individual employees.