This digital era is evolving so rapidly that it is challenging to keep pace with technology which is changing and developing almost every day. The tech career requires professionals to reskill or upskill themselves frequently. Monster.com states that more than 40% of professionals will require reskilling in the next five years.
It is important for an organization to upgrade its employees and equip them with advanced skill sets because upgrading employees will only result in advancing the organization. While a majority of companies realize the importance of employee training, it is still challenging to implement the same.
According to PWC, around 74% of employees believe that to stay employable, they are ready to retrain themselves.
To attain a competitive edge in this dynamic market, many organizations prefer conducting corporate training courses online so that they don’t need to recruit new employees every now and then.
Let us have an overview of corporate training and the importance of the same for organizations as well as employees.
What is Corporate Training?
Corporate training is basically the process of enhancing the essential job knowledge and skills of employees of an organization with the help of properly organized methods of instruction. Corporate training takes the form of online or offline training via instructional content(videos or texts), one-to-one or online mentorship and lectures, virtual or actual group discussions, and practical hands-on projects or physical lab exercises.
Corporate training benefits both businesses and employees by ensuring the quick acquisition of the skills required to achieve business objectives and success, as well as by enhancing teamwork, employee satisfaction, and retention, as well as each employee’s individual skill set, job value, and career development.
A study by the American Society of Training and Development found that corporate training has helped businesses achieve profit margin increases of more than 24%.
Corporate training has proven to enable many organizations to generate a massive 200% more return from each reskilled employee, all this by adding highly valued and relevant skills and important certifications to their portfolios.
Corporate training is the responsibility of the HR team, but many big organizations have dedicated Learning and Development (L&D) teams to take care of what type of training should be delivered to which team.
If carried out successfully, customized corporate training can prove to be beneficial for both the employees and the organization. Employees can acquire new skills and knowledge to advance their careers. Leadership qualities can enhance business operations and improve the capabilities of the workforce with specified strategic goals in consideration.
Benefits of Training for Employees
With corporate training, organizations are able to minimize or even remove the skill gap and convert employees into new leaders for a smoother workflow. With employee development, organizations can train their employees with skills that fulfill evolving demands of the business. The evolving digital skills have resulted in a significant reduction in the half-life of professional skills, from 10-15 years to only 5 years or even less.
Motivation and Engagement
Studies reveal that around 92% of employees believe that successful training improves job engagement. To attain better business outcomes, it is crucial to keep employees motivated and engaged.
While engaged employees help organizations in attaining goals more efficiently, disengaged employees waste the equivalent of around 18% of their salary, according to a report by Gallup.
One of the most common outcomes of corporate training is agility. Today’s dynamic market landscape requires your employees to advance their skills by learning trending technologies. Corporate training is also important when it comes to developing or enhancing soft skills so that they can adapt quickly and better cope under pressure to ensure smarter decision-making.
Though recruitment is an inevitable part of every organization, investing in corporate training makes your employees feel that they are valued and appreciated, and you want them to stay in the organization. This way, an organization earns the loyalty of its employees.
Reduced Employee Turnover
By attaining employee engagement, engagement, and motivation, companies can reduce employee turnover significantly. Employee turnover is reduced by a massive 31% with the help of employee engagement.
Research reveals that around 94% of employees are likely to stay in a company for longer if it invests in their training.
With reduced employee turnover, a company can retain its existing employees, save the costs of recruiting new staff, and also maintain consistent operations. This is an important factor because hiring new staff may cost up to around 213% of the employee’s salary, according to a survey by the Center for American Progress.
How Corporate Training is beneficial to an Organization?
Apart from the benefits listed above, some other benefits of corporate training at the organizational level include:
Through employee training, the existing employees learn the ways of using the latest technologies, such as automation or artificial intelligence, and prove to be more productive for their organization. Improved productivity directly results in more profits.
Improve Team Functionality
Generally, employees work in teams and not as an individual. When these teams are optimized for success in filling the skill gaps, conflict management, etc., there is an improvement in team functionality and, of course, efficiency.
Attain a Competitive Edge
The teams are ready to pivot if they are equipped with all the relevant skills and are upgraded with trending business knowledge. Today’s business landscape is changing so abruptly that it is important to invest in their training in order to upskill them.
Other advantages of employee training for an organization include:
- Prevent and address the skill gap
- Reduce Layoffs
- Gain a recruitment tool
- Develop a talent pipeline
- Improve management
- Reduce dependence on contractors
- Improve a sense of security among employees
It is now clear how employee training benefits both the organization and an employee at a professional level. In fact, it has become an integral and inevitable part of every organization. To enhance your skillset, you can take an online training course and learn relevant technologies.
Interesting Related Article: “7 Reasons Why Employee Training Is Important for Your Organization“