Employee development refers to learning and performance solutions that provide your team with skills to help them succeed in their job. It can also encompass other management functions like recruitment and selection and policies and procedures, though training and development is probably the key element for employee development plans. Since human resources play a critical role in any business, employee development and training can support your organisation's profitability, whether it’s through higher customer satisfaction, productivity, or other factors.
1. Improve customer service and satisfaction
Well-trained employees can deliver better customer service while acting as a positive representative of your company. They can offer better product or service quality because they have the necessary skills for their role. Your employees could be more knowledgeable about products and services, for example, when dealing with customers. They might be able to resolve customer issues more quickly and effectively than otherwise.
2. Drive higher productivity
Productivity is associated with training and development programs. Employees who are well-supported with a staff development plan could be more likely to be engaged and energized about their future with the organisation. This translates to better processes, operations, product quality, and customer satisfaction. If your employees are more productive, your business is extracting more value out of each person. Higher productivity can have a direct impact on profitability, allowing you to generate more revenue with the same inputs.
3. Reduce the need for supervision
As your employees become more productive and effective in their roles, you might be able to reduce the need for supervision. This could allow you to reallocate direct line-management resources to other areas where they're needed. Employees who are empowered in their roles can be more effective, satisfied, and committed. Additionally, by lowering the need for supervision, your business can make better use of its management personnel.
4. Enhance employee engagement
Employee development can also have a positive impact on profit levels through higher employee engagement. By investing in training and development efforts, you're demonstrating you value your team. Staff who feel cared for and supported might be more engaged, loyal, and committed to the organisation.
Additionally, training can give team members an evolving set of skills they need to continue to succeed in their jobs. If your employees have the skills for their job, they could be more likely to feel and be productive, experience job satisfaction, and stay engaged.
Strong employee engagement could have other flow-on effects, such as loyalty, morale, trust, innovation, creativity, and enthusiasm for day-to-day tasks. All of these can have a positive impact on profit.
5. Reduce absenteeism and promote retention
Absenteeism and turnover can pose major costs for organisations. However, if you invest in your employees, you could encourage higher job satisfaction and employee engagement. In turn, this can reduce absenteeism and turnover. Ultimately, this could positively impact your bottom line through higher retention and lower recruitment and employee costs.
6. Support organisational innovation and dynamism
Providing training and development opportunities can encourage your employees to have new ideas and develop new processes and approaches. Skill enrichment gives your team the insight, knowledge, and competencies to develop new and novel ways to deliver quality outcomes for the customer. For your managers, it can also have a positive impact on profit by ensuring they're able to manage your human resources successfully.
7. Maximise resources and inputs
With well-trained, productive, and engaged employees, your organisation has a foundation for maximising other inputs, including time, existing capital, and other non-human resources. Whether it's a micro-credential, on-the-job training, or a higher qualification, your investment in training has a compounding effect on quality. For example, well-trained staff can use your technology tools and infrastructure more effectively.
With highly skilled employees, you can reduce the risk of costly errors, improve the quality of your products and services, and fully leverage the resources and inputs you have. You can improve your processes, achieve more with what you have, and potentially achieve higher profits.
8. Achieve changing strategic goals in response to market
Human resources will continue playing a vital part in your organisation over the longer term. Your employee training plan can be mapped out in alignment with your longer-term strategic goals, which might change as market conditions shift. By training your staff, you can ensure your organisation has the skill set to compete, scale up, and remain profitable in the longer term.
Implement staff training and increase profits
Staff training and development can have a multifaceted impact on your organisation's profitability. The ways it can boost profit range from higher productivity and keeping your employees engaged, to increased customer satisfaction and leveraging your organisation's resources. By implementing a staff development plan, you could achieve higher profitability in the short term while ensuring your organisation continues to achieve its strategic goals in the longer term.
DeakinCo. has been a trusted partner in corporate education and training for leading organisations across Australia for more than 25 years. We provide bespoke learning and development solutions to help you prepare your workforce for the future. Explore our website to find out more about what DeakinCo. can do for your workforce, or contact our team today for a discussion.