Business Drivers That Support the Investment Value in Training
Investment in training and education of business and government employees, military personnel, and customers has proven returns for companies, and government and military agencies in several vital areas of performance. Let’s take a quick look at some of the benefits of training employees:
Investment Value of Employee Training
In an economy driven by knowledge workers, educating and training of employees represents an investment to achieve improved performance as well as the short-term and long-term success of the organization.
Some of the recognized benefits of employee training include:
- Increased Revenue — A well-trained IT staff working with sales, marketing, and customer support stakeholders can analyze needs and develop an organizational strategy utilizing CRM software to improve marketing, sales, customer service, technical support, and other functions. The improved cross-functional operational efficiences from the CRM system result in increases in top line revenue and other benefits.
- Decreased Costs — Training IT staff on new software applications might lead to savings in areas from payroll to marketing to reporting.
- Increased Job Satisfaction — Increasing employee job satisfaction results in higher levels of retention and reduced turnover. This significantly reduces the cost of hiring and training replacement personnel.
- Imporved Quality of Products and Services — Employee training leads to improved skills, knowledge, and abilities that enhance the quality of products and services. This has a financial return that can be seen through less waste, higher customer satisfaction, reduced customer support costs, and other related benefits.
Investment Value of Customer Education
Often when we think about corporate, government, and military training the focus is on the development of employees, but several studies indicate that there is actually more spend devoted to customer education than employee training. Companies like Cisco, Microsoft, Red Hat, VMware, HP, and EMC make significant investments and employ a variety of delivery methods to provide high quality training for customers to ensure that their products are implemented and maintained properly.
Regardless if spend on customer training is more or less than that spent on employees, there are some very important reasons to invest in customer training and some very significant returns to be generated from effective education of customers. Let’s take a look at a few.
- Customer Satisfaction, Loyalty, Retention — The ablility to learn the proper setup and use of the product or service, allows you to realize its full potential and have a better chance of being more satisfied with it. The more complicated the product, the more important that effective customer training be provided.
- Discover Marketing Opportunities — Customer education provides companies with an excellent opportunity to interact with customers and to discuss needs, requirements, and improvements that can serve to drive new sales and new products and services.
- Mitigate Risk — Customers can be injured or property may be damaged if a product is not properly used and the provider company may be held liable for damages. Customer education is a primary means of mitigating risk involved with product and service liability. Investing in the development and delivery of proper, complete, accurate, and effective customer education is an investment that can result in significant savings by reducing liability and potential financial settlements.
- Generate Revenue — Customer education is often a revenue producing center for corporations. Clients or customers are willing to pay for product or service training in order to optimize the benefits. The investment in the development and delivery of professional training programs and materials can generate significant revenue while increasing customer satisfaction, loyalty, and retention
Excerpted and available for download from The Investment Value of Training (PDF)
IT & Business Certifications