Importance of Training Employees: 8 Reasons It Matters

It’s a typical Monday morning. You stroll into the office, coffee in hand, ready to tackle the week’s workload. But as you sit down at your desk, you notice a growing sense of panic rippling through your team.

You forgot that the new software update just rolled out over the weekend, and no one knows how to use the updated version. Cue the cold sweats and unbearable hold music as everyone frantically calls the IT helpdesk.

This scenario is all too familiar for companies that don’t prioritize employee training. It’s also only one minor way among many bigger reasons related to the importance of training employees.

Let’s find out how employee training and development is beneficial to everyone involved.

What you’ll find in this article:

• What’s the importance of training employees? 
• What’s the difference between employee training and development
• 8 reasons why training employees is important
• Common types of training
• Creating courses that stick: The importance of an engaging training program
• Prepare your company to capitalize on the benefits of training

What’s the importance of training employees?

Employee training is the process of equipping employees with the skills and knowledge they need to perform their roles effectively.

Investing in employee training also readies them to take on any challenge that comes their way.

For example, you could sprinkle in some software training to prepare employees for new tools before they bombard the poor IT team.

It’s an investment in the workforce that pays dividends in terms of increased productivity, improved performance, better employee retention, and more.

It’s important to understand that employee training is part of a bigger process called learning and development (L&D). And even though they go hand in hand, they are different.

While staff training is a key component, L&D also includes other processes such as mentoring, coaching, and performance support.

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What’s the difference between employee training and development

Training is part of the development process but lives outside on its own. The development process is made up of other processes (one of them being training) that create a whole.

Employee training is all about helping employees do better in their jobs. For example, when employees start a new job, they receive technical training on the basic knowledge and skills they need to get started.

Employee training and development takes a more long-term approach, concentrating on the overall professional growth by developing employees’ existing skills or new skills. You don’t create an entire development plan for an employee just for a software update.

But, you would create a dedicated development plan that includes leadership training for someone working towards becoming a people manager. Employee development is a long-term plan to help an employee grow holistically. A few employee development plan examples include:

• Bridging skills gaps through targeted training and development.
• Creating career paths to help employees progress in their roles.
• Establishing rotational programs for employees who want to broaden their skill sets in different roles and/or departments.

Employee development and training can overlap. This happens when long-term employee growth requires short-term training to learn or improve a specific skill.

8 reasons why training employees is important

The importance of training employees is often undervalued.

When a company invests in training for its employees, it shows commitment and, ultimately, boosts morale, employee engagement, and loyalty.

Increased productivity

Well-trained and engaged employees work better. They make fewer mistakes and finish tasks faster. Making them more productive and better at their jobs.

Reduced turnover

When workers feel appreciated and have chances to grow within the company, they’re more likely to stick around. Our report found that 41% of employees plan to job-hunt in 2024 if their company doesn’t offer them training opportunities.

Attracting top talent

Prioritizing training helps companies stand out and draw in and retain top talent. Businesses with effective training programs are attractive to job seekers who want to continue learning and advancing in their careers.

Preparing employees for growth

Training gets employees ready for new jobs and more responsibilities in the company. Well-trained employees can more easily move up or across the company without needing to hire externally.

Interestingly, the TalentLMS L&D report also shows that employees are embracing skills training independently as well. 68% take additional training on a personal basis to improve skills, thus forging their own skill paths.

Improved job satisfaction

Training helps employees do their jobs well, making them feel good about their achievements. As a result, they feel more engaged and appreciated about their work.

The survey found that 54% said their company shows appreciation by investing in staff training and development opportunities. Making it an opportunity that businesses should capitalize on.

Reduced supervision needs

Employees who have been trained properly need minimal supervision. They have the know-how to handle tasks on their own, giving them autonomy and ownership, making processes more efficient.

Addressing performance gaps

Training helps you identify and address skill gaps in the team. Then, you can assign relevant trainings to ensure employees have the skills they need to reach company goals.

In the most recent TalentLMS research, an impressive 71% of employees are eager for more frequent skill updates. Furthermore, a remarkable 80% are keen for companies to invest more in upskilling and reskilling.

Common types of training

There are various types of training programs that organizations can implement, each with its own specific goals and expected outcomes. Here are a few of the best employee training methods and what they might do:

Onboarding training

Onboarding training sets new employees up for success from day one. When done right, onboarding speeds up the time it takes for new hires to start making a real impact.

Studies show that when employees go through structured onboarding, they’re 58% more likely to stick around for at least three years. Getting up to speed quickly through onboarding means the organization gets a faster return on its hiring investment.

An onboarding program consists of both formal training on job responsibilities, tools, systems, and informal learning through job shadowing, mentorship, and on-the-job training. The optimal mix helps new hires gain knowledge while developing skills in a supportive environment.

Pay attention to metrics such as time-to-productivity and first-year retention rates to measure the effectiveness of your onboarding efforts.

Compliance training

Compliance training covers lots of different things, like safety, compliance, inclusion, and following specific industry rules. When companies have proper compliance at work, they can lower the chances of risk.

A study by the Ethics & Compliance Initiative found that companies with strong compliance programs had way fewer issues with misconduct and saved a lot of money on compliance-related costs.

Metrics to track the effectiveness of compliance training may include:

• Number of compliance violations and associated costs before and after training.
• Employee participation rates in a compliance training program.
• Knowledge assessments and pass rates.
• Employee surveys on compliance policies and procedures.

Sales training

Sales training covers prospecting, rapport-building, objection handling, negotiation, and closing.

It can significantly impact revenue generation. According to industry studies, companies investing in strong sales training experience a notable increase in their win rates, with some organizations reporting revenue growth of up to 20% or more.

The direct correlation between training and financial performance underscores the importance of prioritizing continuous learning and development for a sales team.

Continuous training keeps salespeople updated on industry trends, market shifts, and customer preferences. This approach boosts employee performance and sales.

Metrics to track include close rate, close-to-prospect ratio and total outreach.

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Customer service training

Great customer service is how businesses build lasting relationships and create loyal customers.

This training teaches employees active listening, empathy, problem-solving, and effective communication.

Good customer service training has a snowball effect. Satisfied customers are more likely to remain loyal to a brand and recommend it to others. A strong reputation for excellent customer service can be a powerful differentiator in today’s competitive marketplace.

Companies can track the impact of customer support training by monitoring metrics such as:

• Customer satisfaction scores
• Customer retention rates
• Online reviews
• Testimonials

However, the type of training that you provide is not the only essential aspect. You also need to consider the training technique or method used depending on who you’re training. For example, online, asynchronous training might be better for more technical training. While soft skills trainign such as leadership or decision-making might require a different approach. Dr Heidi Kirby on the podcast episode Hitting the mark: How to create top-tier training says that “To effectively teach human skills, such as leadership or communication, incorporate storytelling, case studies, and scenarios. These methods provide relatable and practical examples that help learners understand and apply the skills in real-world contexts.”

Creating courses that stick: Importance of an engaging training program

There’s a growing importance of training employees with content that’s not only useful but engaging.

In our digital world, how we present content and engage learners has to be really interesting to grab people’s attention and get them involved.

And if the training doesn’t work? Then, it’s a waste of time and money.

Aside from these reasons, there are many other benefits.

Why is it important to create engaging content?

An engaging training program helps you achieve quite a few things.

Helps with retention and application

First, they help employees remember and apply knowledge better.

When people remember what they learned, they can apply more of it at work.

Further boosts employee motivation and happiness

Based on dozens of reports, training is a huge driver of employee motivation and job satisfaction.

By making training fun and interactive, employees will be excited about learning at work.

The effects could only be positive.

Creates a continuous learning culture

Learners who enjoy the content and find it easy to digest are more likely to engage with the training. The more engaged they are, the better they’ll retain information and make it part of their ongoing growth.

Drives better collaboration

Training can help employees work together better because they must engage in group discussions and projects.

These activities help people learn and build stronger relationships. They also make the workplace more enjoyable.

Attracts and retains more talent

An engaging training program is a great way to attract and retain top talent. Employees really appreciate opportunities to grow and develop.

However, remember that a diverse workforce requires you to tailor the content to diverse learning styles. The more personalized the training, the more effective it will be.

That brings us to the next major point of creating strong employee training courses: personalization.

How to create and facilitate engaging training programs

Creating a training program will help you in many ways, but it is only half the battle. The other part is keeping learners engaged. Kirby discusses that training should be more than just useful. She then continues to explore the ingredients needed to make training a great fit for learners’ needs.

Importance of personalized learning

If creating a training program is level one, then making them engaging is level two, and the last level is personalization—the last piece of the puzzle, so to speak, but one of the utmost importance.

Personalized learning helps unlock higher levels of engagement, retention, and, ultimately, leads to better outcomes.

One key aspect of personalized learning is custom learning paths. Instead of a one-size-fits-all approach, custom learning paths are relevant to employee roles, goals, and existing knowledge levels.

Another powerful tool in the personalized learning arsenal is recommended course assignments. Using data and analytics, employee training software can suggest courses or modules that align with an employee’s development needs, interests, or performance gaps. Kirby comments, “If you think of AI algorithms, like you think of things like Netflix, YouTube, TikTok, Instagram, what are those things showing you? […] Netflix will say, oh, you liked this show. Here’s another show that you’ll like. Why wouldn’t we leverage that in learning too, right?”

AI as a way to expedite program implementation

Artificial intelligence (AI) can help create employee learning programs.

One of the primary benefits of AI in employee training is its ability to help create better custom learning paths.

AI can also automate the creation of training content that inclusive and accessible. Kirby notes, “There’s AI now that will write alt text for images for you. So that’s saving you that step of having to do those things manually, but also adding an extra layer of checking to make sure that you’re doing things that are inclusive and accessible.”

Plus, with the help of AI you can get real-time feedback on employees’ performance.

Reviewing results

Even the best-designed programs can benefit from periodic review and adaptation based on real-world results and feedback.

One helpful metric to monitor is completion rates. Low completion rates can indicate that the content, format, or delivery method isn’t resonating with learners. Perhaps the material is too dense or dry, the pacing is off, or the medium (e.g., video vs. text) doesn’t align with learner needs.

Don’t be afraid to make adjustments based on this data. Refreshing the content with more engaging examples, breaking it into shorter modules, or experimenting with different media types could dramatically improve completion rates. As Kirby mentions, “[…] if we look at the data on the back end, too, we can see, Oh, hey, no one’s taking this course. Or if we have some of those like rich video or viewing metrics, we can say, people are stopping five minutes into this video every single time. Maybe it’s not as useful as we thought.”

Also, you may need to think about whether the program is meeting the needs of its intended audience. Perhaps certain segments of learners require more foundational knowledge or different contexts to make the material relevant.

Prepare your company to capitalize on the benefits of training

Understanding the importance of training employees is the first step to creating a well-rounded training.

Effective employee training programs are built to be engaging, personalized, and impactful.

Done right and making it part of your company culture helps improve employee retention, performance, engagement, and so much more. It also shows your workforce that you care about their career development.

It’s hard enough as it is to implement these programs, not to mention plan custom programs and monitor learning metrics. Using an LMS system can help.

An LMS, like TalentLMS, helps fast-track your training. With AI-powered capabilities and personalization features, you’ll kick-start your training and accelerate your business growth.

Invest in employee training today, and watch your team’s growth propel your company to new heights.