Why businesses should invest more in employee training to enhance profit margins

Why businesses should invest more in employee training to enhance profit margins

Many early stage startups expect new employees to acquire skills on the job, while some large corporates too generally don’t invest much in long-term employee training programs. Companies don’t train workers anymore because of different apparent factors such as the changing nature of work and constant job hopping by employees. But businesses should continue to invest in all their employees. In fact, these are the people who plan, process, and propel a business and help to achieve its ultimate goal, which is profit maximization. Every person in every department works for this supreme objective, directly or indirectly. Many falsely presume that only sales and marketing people are responsible for revenue generation. In practice, be it a production engineer or an account manager, a market analyst or an HR executive, all contribute immensely to maximize the business profit. Only those organisations where all people work with solidarity achieve annual targets and get success in the long run. As per the HR Magazine, companies that invest $1,500 per employee annually on Teaching and Learning (T&L) activities earn 24 percent more profit margins than organisations with lower training budget. A similar study conducted by The American Society for Training and Development (ASTD) reveals that out of 2500 companies firms which had provided comprehensive training to its employees availed 218 percent more income per employee than companies with less aggressive and non-comprehensive training approach. Now, it is a firm belief of a majority of corporate giants all over the world that by leveraging technical and professional skills of the employees, businesses can make higher profits without endangering their sustainability. How to gain optimal...