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Why Is Employee Training Important for Plastics Processors?
By admin | February 23, 2009
Your employee training is either facilitating or preventing your company’s expansion. It’s that important.
Employee training is like “motherhood” and “apple pie”. Every company agrees that it is a good thing. But when you ask those same companies how much money they spend on employee training each year, you see very quickly that their committment to training is more talk than action. According to a study done by Training Magazine, companies that spent approximately $273 per employee per year on training averaged a 7% voluntary turnover rate, while companies that spent about $218 per employee per year averaged a 16% voluntary turnover rate. According to a recent study of 540 companies done by the American Society for Training and Development (ASTD), those companies that invested more in training realized a 37% higher gross profit margin per employee.
The numbers make the employee training picture pretty clear… companies that invested more in employee training made more money.
What about employee turnover? Any human resources manager will tell you, replacing an employee, particularly one with a special skill set, can be very expensive. According to a study done by STD, 41% of employees at companies with little to no training were planning on leaving the company within a year. Compare this to just 12% departures at companies with excellent training programs. regarding the cost of replacing an employee, consider the American Management Association’s study that found that the average cost of losing, replacing and restoring equivalent productivity when a valued professional leaves is, on the average, one times that employees’ salary.
It’s almost impossible to overstate the actual cost of poor or no employee training–the cost of incompetence, inefficiency and human error. another way to look at this is that companies that don’t have a formal training program still have a training program. They train their employees by correcting the mistakes that they may. This is the most expensive and inefficient method of training there is, yet unfortunately it’s also the most common.
So why don’t companies put more effort and dollars into their training programs? Many times executives responsible for these decisions simply aren’t aware of the true cost of not training. The problem is these same executives are used to making decisions based on ROI spreadsheets that are easy to analyze what it comes to something like a capital investment in machinery. However, they are pretty much at a loss when it comes to measuring ROI on “soft spending” like spending on employee training. And the return on a training investment is very often difficult to measure.
There’s also the choice facing companies of how to train when they decide to implement a formal training program. However with nearly universal Internet access today, you can find training on virtually any topic from soft skills, to the most technical training needed by skill employees at manufacturing firms. In the plastics industry, Paulson Training Programs pioneered implant employee training.
Paulson’s insight 360 online training offers employee training all levels of employees and not just technical training. they have a large library of soft skills training as well.
To find out more about Paulson’s online training, visit their website at www.paulsontraining.com
Topics: Plastics Processing Training |