Making the case for employee training isn’t always easy, especially when senior executives are often more focused on improvements in other areas such as equipment and technology. However, HR teams, plant managers, and supervisors can help leadership realize the value of workforce development by showing them how the lack of employee training can lead to missed opportunities and lost business, ultimately hurting a company’s bottom line.
“Top-performing companies understand the full value of training programs. We know this because those are the organizations that we see devoting resources to educating their workforce,” said Jeannine Kunz, director, Tooling U-SME. “When management can measure return on investment, they can justify the expense of training and development to higher-level decision makers.”
Tooling U-SME’s white paper Proving Training ROI: Moving from Expense to Necessity shows how companies can tie learning and development to their bottom line. This white paper provides formulas for calculating return on investment for metrics including accelerating onboarding, reducing downtime and increasing productivity. The white paper also includes best practices to show how companies can improve their return on investment through job-related training programs.
Research proves there is a strong connection between training and company success yet many manufacturers are still not investing.
According to a study by Bersin & Associates, entitled “High-Impact Learning Culture: The 40 Best Practices for Creating an Empowered Enterprise,” high-impact learning organizations that have a strong learning foundation in place tend to outperform their peers significantly in several areas:
- 32 percent more likely to be first to market
- 37 percent greater employee productivity
- 34 percent better response to customer needs
- 26 percent greater ability to deliver quality products
- 58 percent more likely to have skills to meet future demand
- 17 percent more likely to be market share leaders
Unfortunately, the reality for other companies is quite different. Findings from Tooling U-SME’s Readiness Assessment Insights Report shows that 33 percent of companies say their job-related training options are minimal, and only 25 percent say their company offers a structured training program on manufacturing skills. Less than 24 percent agree that the training their company provides is adequate to meet the needs of the organization.
When management is able to demonstrate the positive impact that training can have on the bottom line, then they will have a greater chance of gaining support and funding from senior leadership.
To learn how you can show top management at your company the value of investing in training and development, call us or download Tooling U-SME’s free white paper, “Proving Training ROI: Moving from Expense to Necessity.”