This is the summary of a paper written by Global Corporate College, a partner with CLIMB.
GCC provides effective training on topics that matter most to businesses. In this paper, the direct relationship between employee improvement programs and company profit is explored.
- Companies spend an average of 20% of an employee’s salary when he/she quits. Multiply that by the 32% of your employees who claim they are actively looking for work right now and it equals a massive financial issue.
- We encourage you to look at your company holistically, in order to fully see training’s reach and how the financial picture works out. Training costs are almost always recouped through monies saved in:
- Employee turnover
- Productivity per employee
- Workers compensation
- Sick time
- Customer satisfaction
- Happy employees are also productive employees. Well-trained staff are more capable and willing to assume more responsibilities, and use less sick time and incur fewer work related injuries.
- Equally as important as happy employees are happy customers. Well-trained employees are more likely to be able to answer questions from customers, have a positive attitude when interfacing with them, and are more likely to care about the products and services they are recommending or selling.
- Organizations with fully engaged employees tend to demonstrate outstanding performance.
- Companies investing the most in training score the highest in employee engagement and lowest in turnover.
- Not convinced yet? Here are some more convincing statistics:
- Xerox Corp. reported that for every dollar spent on training, they get a return of $22.
- IBM Corp. reported they receive $26 for every dollar they invest in training.
- Motorola Corp. reported a ROI of $33 for every dollar spent on training.
- Any well-designed training program should pay for itself many times over.
More information, studies and conclusions can be found in the original white paper published by Global Corporate College.