Value Human Capital as an Asset on Balance Sheet
Many companies are not aware of the incredible Return on Investment they achieve when they invest in training their employees.
Well trained employees accomplish their tasks more efficiently; they utilise tools more effectively; they are happier and more satisfied with their jobs; and as a result, they provide better customer service.
This improved customer service creates shorter order cycle times which improves cash flow.
Faster deliveries increase customer satisfaction, which results in higher sales. Happier employees are also more likely to engage in cross-sell and upsell behaviours and conversations that increase the average revenue per order.
Untrained Employees are Expensive
Some companies believe that training is expensive, but it isn't nearly as expensive as not training employees can be.
Untrained employees perform their tasks more slowly than their better trained counterparts, and they make more errors. They are likely to omit steps or take short cuts that decrease quality or accuracy.
They become frustrated and defensive, and often avoid interacting with customers and co-workers because they feel unprepared for questions or possible assignments.
These behaviours lead to lower revenue per order, fewer orders, longer lead times and more errors. These poor outcomes tend to compound over time, so that results continue to worsen.
Whatever the company saved by not investing in training is more than lost in higher costs and lower sales.
The Training Payoff
Well trained employees are more efficient, so the company enjoys lower costs.
These employees are more likely to make process improvement suggestions since they have a better understanding of the process than poorly trained employees. This results in continuously improving processes that are more efficient and that cost less and result in fewer errors.
The company's overall accuracy improves, and as a result, the entire operation runs more smoothly.
Well trained employees know how to handle most situations that arise, which means that problems or customer issues are resolved faster, so customers are happier as well.
The Value of Professional Trainers
While using a "train the trainer" approach is certainly better than no training at all, it is still a very ineffective way to train.
Research has shown that people only retain about 50 percent of what they learned after just a few days. If the employee who only remembers 50 percent of what they learned trains another employee that employee will retain only 25 percent of the required knowledge.
With each successive training iteration, less and less knowledge is retained until the results eventually are little better than no training at all.
Professional trainers, on the other hand, have properly designed curriculum and training materials that ensure that all required topics are covered in the correct level of detail.
They have the skills and techniques to provide multiple learning formats to suit each individual's learning preferences, and they can readily evaluate each participant's progress in a way that would be awkward or impossible if it came from a peer.
ICRMS team can help improve your operations and reduce costs with a professionally administered training plan and providing skill, knowledge and performance based training resulting in good ROI (Return on Investment) for the training(s) delivered.