Benefits of training for employers

The facts about training

The Confederation of British Industry’s 2009 report on employment trends shows that during a recession, 44 per cent of employers reduce the amount of money they spend on training during a recession.

This is despite 57 per cent saying that a loss of talent and key skills is a threat to their business during the economic slowdown in the Hay Group’s Fight or Flight in 2009.

Organisations that invest in their people’s skills and development have a better chance of surviving an economic crisis such as the one we are currently seeing.

Why invest in training?

In a 2009 survey of Institute of Directors’ (IOD) members, the principle benefits of training staff were identified as:

  • improved staff morale
  • improved productivity/profitability
  • improved customer satisfaction
  • improved staff retention
  • improved market share
  • improved staff recruitment

The International Financial Services – The Future report, published in May 2009, highlights the need to keep the financial services industry globally competitive. It states that.‘having an efficient labour market with the right skills is a critical factor in the success of a financial centre.’

The report also recommends the introduction of more regulation into the sector to improve processes and customer service provision. This is needed to regain the public’s confidence and trust which had been dented by the industry’s involvement in the recent economic crisis.

There is now a renewed interest from employers on:

Because of this new focus, the common shared opinion among financial services employers is that it’s more important than ever to invest in training and development programmes.