Education Benefits Can Bring Long-Term ROI
Posted by Des Sinkevich on September 7, 2022
With a turbulent economy and millions of unfilled jobs, it’s more important than ever to focus on attracting and retaining the talented employees that can push your business further toward success. As we approach the last quarter of 2022 and budget planning has begun for 2023, ensuring that your company has the tools it needs to meet and exceed its goals will be vital. What’s one easy win that can prove beneficial to your bottom line? Investing in employee skill building, training, and education.
Why budget for employee upskilling
Providing education benefits and training programs to employees requires investing time and money. But that investment pays off in the long run, making it an essential item to include in your yearly budget. Besides being an effective tool to attract new, talented workers, offering education benefits has a direct impact on retention, productivity, and employee satisfaction.
1. The impact of education benefits on retention
On average, a company can expect a turnover rate of around 18%, although, as a general rule, about 10% is considered “good”. In 2021, the average national turnover rate was calculated at 47.2% for all industries. Even though this can be attributed, for the most part, to the Great Resignation, it’s still concerning for companies who were already struggling to fill open positions and improve retention rates. The more people you lose, the more it costs your company; the longer positions are left unfilled, the more money you’re losing.
By implementing an education benefits program and providing professional training to employees, you’re showing workers that you’re invested in their growth and giving them the opportunity to gain new skills and advance in the company. The latest research has shown that companies can increase retention by 20-40% if they have workers enrolled in an education and training benefits program.
2. How employer-sponsored education impacts productivity
It’s not news to say that happy, supported employees are better workers. Workers that like and respect their employer are often more engaged and more productive. In fact, an Oxford study showed that happy employees were 13% more productive than their stressed, unhappy coworkers.
Besides instituting a company culture that respects employees and is inclusive, one strategy to improve employee satisfaction is to offer them opportunities for growth and advancement. Education benefits and training programs that provide interested employees with methods of gaining new skills and knowledge are an effective way to not only support employees but develop future company leaders.
3. The importance of professional development for new workers
Besides supporting and promoting current employees, professional development opportunities are essential for new hires. Outside of use as a tool to attract your new employees and encourage their retention, in-depth training during onboarding – and after – allow your newest workers to gain competency in the skills essential to their roles while also building engagement and talent.
As part of your company’s onboarding activities, ensuring new hires are aware of and encouraged to participate in your education benefits offerings is an important first step to guaranteeing program participation.
Train for in-demand skills online
As you’re considering your 2023 budget and planning for the future, it’s vital to account for education benefits and training. While it can be costly upfront, the return on investment is more than worth it. In an economy in which workers have their choice of jobs, offering these benefits and a clear path toward professional development can help you attract the talented employees you need and keep the dedicated ones that are essential to your day-to-day operations. If you don’t already have an education benefits program in place, reach out to our training experts today to learn more about the training Penn Foster can offer your company.