Human Resources Employee Training Needs to be a Budget Item | Employee Training Needs to be a Budget Item |
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How do you not grow a company? Simple. Don?t grow your employees. Many business owners have the mistaken belief that if you don?t educate an employee, you have a better chance of retaining them. They feel that if you train them, they will take their more marketable skills elsewhere. That is true, but not always. If done correctly you will lose only a small percentage of your employees who seek better opportunities and will retain your best workers because their increased productivity and contribution will pay for their higher salaries--plus some profit for you. A number of studies have been done that show employees do not always leave companies because of an offer of higher pay. Very often they will leave because of bad management and will stay for positive reasons such as training, benefits and a good boss. Particularly with regard to a having a good manager, an employee who has comfort with his supervisor will tend to think it is better with the devil you know than risk the devil you don?t. That fundamental caution of changing jobs to end up with a bad boss, while you offer competitive benefits and professional and personal growth, you will see that loyalty to the company only increases. Budgeting is important in any growing business. But training often is left out as the company tries to project its best profitability in the short term and shorts the areas that support long term performance. By adding something each year to the budget, it keeps you committed to training, and in the course of the year if circumstances warrant it, pull the trigger and give that deserving employee a day at a conference or seminar to improve one of their key skills. Even if you budgeted one week?s training and only deliver one or two days, the employee will appreciate it. Rotate training so that there is a perception that the company is committed to employee advancement--just be consistent and fair in how you choose the individuals and for what reasons. Be committed to growing your employees and you will be see the results in a growing business. |
