This is the fourth blog in the Cisco Partner Talent series, helping partners attract, develop, and retain the right people with the right skills at the right time. Last month’s blog discussed the importance of “emotional” onboarding. This month’s blog post goes into detail about stage four of the Cisco Fit4Talent Employee Lifecycle: Learning and Development.
It’s hard to predict the future, but one thing is for sure: technology will continue to evolve and your business will, too. The question is: will you still be able to beat your competition as the industry shifts and the rules change?
The answer may lie in your people. Are you offering them the training they need to succeed? Just as important, are you seeing a solid ROI from those offers? A recent article available to Cisco partners sheds light on these questions and more.
According to the U.S. Department of Labor, the use of employee training to enhance and develop technical knowledge and professional skills leads to a 16 percent increase in productivity overall. That can lead to big gains where it counts; an FMI report, also mentioned in the article, found that a one percent rise in productivity usually equals a four percent increase to the bottom line.
So if your firm has cut training because of the lackluster economy, you may be hurting your chances for success over the long haul. In fact, the most successful companies never stop funding employee learning and development. They know that training pays them back with a workforce that’s not only more competent but also more content and confident in its skills. Some of the highest performing employees told researchers in survey after survey that learning and development is the most important benefit in their workplace—some even said more important than their pay.
The Construction Industry Institute discovered that for every dollar invested in training, return is between $1.30 and $3.00. This is huge. And the return can be even higher as companies continue to shift from in-person, classroom-based training to web-based training, which can save employers substantial training costs.
How much should you set aside for training, you ask? On average, companies spend 2.7 percent of their payroll on training. Take a look at your “books” to see how you stack up and what kind of investments you can afford to make. You might find that you need to beef up your resources. Only you can determine the right fit for your company, but be sure to keep your focus on future success.
Want to debate training spend? Leave your comments below. Also visit Cisco Fit4Talent for our free talent management resources. And click here to read the entire article on training investment.