Each year, firms invest millions of dollars into training programs because they understand the immense benefits derived from such training. According to one survey, one third of newly hired staff quit their jobs after the first six months. Most of them cite lack of skills and job growth as one of the major reasons they leave. Another study that was first done in 2006 and repeated in 2011 reveals that career growth is the second major reason why new accountants choose to stay at their firm, second only to salary considerations. These two statistics are major indications of the importance of employee training in enhancing retention. Let’s shed some more light on how training programs enhance employee retention.
Training Makes Employees Feel Empowered
Many companies have a misguided opinion about workforce training. They feel that by training their employees, they relinquish their responsibility to control the company. When a firm enhances its training programs, it is making staff members feel like better professionals. They feel empowered and confident to handle any task that may come their way. Empowerment through training also enhances the relationship between management and staff. All these new developments lead to increased retention rates in the company.
Employees Feel Wanted
An effective training program can increase productivity and commitment among employees. When a company invests in training programs, it shows employees that they are valued. It shows that the firm considers their skills and contributions as worthy of further investment. The resulting effect is that they will feel appreciated and valued in the organization. A person who feels wanted and valued in a particular role will be far more willing to stay on the job.
Increased Job Satisfaction Rates
Training programs are one of the key elements required to realize employee job satisfaction. Training allows younger staff in particular to enhance their skills and increase their value to the firm.
This starts a positive feedback loop: Better trained staff leads to increased rates of successes in projects. Success breeds general satisfaction at work. Satisfaction leads to more commitment. A committed employee will be willing to do his or her work for longer hours (a necessity during busy season!). Some of them will even take on more responsibilities in the organization without demanding an increase in salary. Effective training programs increase their billable rate and allows assignment to specialized accounting, tax, and audit projects, further increasing their value to the firm.
Training Allows Learning and Development
Training programs are learning and development tools. Through training, employees are able to hone their skills and acquire new ones. While typically not a CPAs top concern, surveys do indicate that nearly half of all staff accountants expect their firm to provide CPE opportunities or reimbursement. These staff accountants are more likely to stay with the firm if they are able to benefit from the wide variety of training programs available.
Rooms for Promotion
Employees acquire new skills and expertise through their continuing professional education. When equipped with knowledge and new skill sets, an employee can decide to apply for advanced roles in the firm. Though most companies do not invest in training programs to enhance career progress, most employees see them as opportunities to get promoted. Many of them will be willing to stay and attend as many training programs as possible to achieve this goal. Training is also beneficial to the company’s structure and furtherance of corporate culture. As the staff members complete various training programs, they find themselves in a better position to manage advanced tasks. This can save the company the cost of hiring and training another person, as they already have an insider with the capacity to handle the job.
Increased Job Morale
Morale really is the key to increased productivity in a company. Since training makes employees feel valued and appreciated, they tend to develop a positive attitude towards their work, which translates to a increased job. An employee with enhanced morale always looks forward to the next day at work. The chances are that they will be more willing to stay at their current firm as a result. In the end, the firm will record higher returns on investment from these happy staff. The business will also worry less about hiring new staff as the existing employees are already in the right mood to handle any job that might arise.
Firms should not sit and watch as workers come and leave for better jobs after just six months. According to human resource experts, pay alone does not affect employee motivation. Other factors such as training and benefits play a major role in employee retention. The best way to ensure employees stay is to offer continuing education through in-house training. It is the bridge that leads to increased rates of employee satisfaction and retention. Firms should consider the important components of training strategies. They must develop clear objectives, organize team building activities, enhance learning and development in the team and constantly coach younger employees in particular. Training programs can be in the form of on-job learning, mentoring programs, individual training and in-house studying.
Prolaera’s simple CPE management and personalized Learning Track features can help your firm reduce administrative overhead and create happier, more productive staff. To learn more, view a demo or schedule a chat.