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Pay Offs of Training Staff

Thursday, July 07, 2011   By Mike Reddy


Training your employees appropriately and frequently is indeed an investment - and one with a powerful return. When your employees are nurtured with the necessary staples they will make better decisions, their relationships will improve and their opinions will show deeper insight.

Training can mean seminars,  webinars (like we offer to you on a monthly basis), lectures and workshops, manuals, memos and meetings. There are many ways to interact with your different divisions and to get them motivated as well. Take advantage of the many organisations out there that run training programs in diverse and interactive ways. If you want your employees to participate and actually benefit from training, it’s vital to keep it interesting or their attention will be less than focused.

With well-trained employees you will find that your client satisfaction increases, which in turn generates more lasting relationships. You will also witness a motivated and driven team. When employees feel empowered or inspired by their work, they feel invested in their work responsibilities, and therefore take more interest.

The problem most business owners find with training staff is the inability to tangibly weigh the benefits against the costs. What are the economic frameworks to judge the profits generated based on the training? You certainly aren’t evaluating conventional returns - training is an intangible resource.

One way of viewing intangible benefits such as training is employee happiness, or job satisfaction. Lack of training leads to lacklustre performance, often because employees feel inadequately prepared to take on more difficult and rewarding tasks. With the right equipment (in this case, knowledge or information), the team is more confident and more likely to accept challenges, which in turn boosts productivity.

By viewing training programs as conventional commodities, you will never see the economic benefits. Look to the ways in which training is a catalyst to other less tangible assets. A solely monetary view is no longer a comprehensive one.  And remember that as your advisor, we have the tools to help you measure critical areas of your employees’ satisfaction and help you build a winning team.

Mike Reddy is a Chartered Accountant, business coach and advisor helping businesses in Sydney, Melbourne, Brisbane and Gold Coast to easily increase their profits and cash flow. He is currently President of the North Sydney Chamber of Commerce, a Regional Councillor for Sydney North East and a member of the Institute of Chartered Accountants Sydney leadership team. As well as advising businesses, Mike presents business development seminars and webinars and is regularly contacted by the media to comment on small business matters. You can connect with him on Facebook, Twitter and Google+.