How Training Can Improve Profitability
Thursday, 02 August 2018
Posted by: Ernest Roper
Businesses are established with the objective of generating income. Entrepreneurs harness their skills and expertise to establish businesses which will generate profit.
For this to be achieved, the business owner will require resources, which when harnessed, will produce the required outcome.
Different sectors require a different mix of resources, but ultimately, the human resource becomes the one to put everything together. People are therefore our most important resource in the generation of profits for the business.
It is observed that businesses are however reluctant to invest in this critical resource, which appears do draw the most out of the business. They require salaries, safety, wellness, benefits, motivation and training. This can become very expensive and can often be viewed as superfluous.
I would like to focus on training which is often regarded as a luxury and sometimes seen as a grudge expense. Legislation has been put in place to promote and encourage spend on education and training.
Employers gives various reasons for holding back on training, such as, expense, waste of time, impact on production, etc.
What are the reasons an employer should consider as a motivation for training of employees?
- Increased productivity and quality
- Reduction in lost time and money because of mistakes
- Satisfied clients
- Employee satisfaction
An employee who receives the requisite training for their job and the strategic objectives of the business can perform better and to their optimum. The training provides knowledge and skills which improves the employee’s confidence in that it provides a better understanding of the industry and the job function. This confidence in turn prompts the employee to come up with more ideas on productivity improvement.
Untrained workers make mistakes and these mistakes can often be very costly and sometimes deadly. When one weighs up the cost of training against that of mistakes and accidents, it is true that training is cheaper.
When we produce quality, within the timeframe and budget, we have satisfied clients. Satisfied clients often become repeat clients and become a marketing tool for future clients.
Employees with access to training have an advantage over employees on other entities who do not have access to training. They know that they are productive. They experience job satisfaction and develop a loyalty to the business. They are supportive to their superiors and often do more than what has been expected. On the other hand, employees who feel inadequate, underachieving and unsupported underperform, make mistakes and lose pride in their work. Their mistakes cot the company money and can often lead to losses on a job.
To this end, we encourage all employers to put together a meaningful training plan for their employees, bearing in mind the strategy of the business and how each employee fits into such a strategy.
Master Builders KwaZulu-Natal provides skills development advice. Write to email@example.com and let us assist in tailor-making a programme for you.
Victor Smith | Training Manager