Businesses are always looking for new ways to spend less money. The more money a company can save, the better it will be for profit margins.
If your expenses are stupidly high, it puts added pressure on your sales figures. You might hit really good sales targets that seem excellent when viewed on their own. Unfortunately, your business is spending so much money, deeming the sales below-par. You’re unable to make a profit, meaning you constantly hit loss after loss.
The mistake lots of companies make is they don’t realise that spending money can often save money. That sounds like an oxymoron, but there’s sense to it. Investing money in aspects of your business will help you save lots of money both now and in the future.
As the title of this article suggests, one of these investments should be employee training. Training your employees can help you tighten your budget in the future. How? Let’s find out…
Training reduces hiring costs
Training your employees can help you save money on hiring new people. There are countless instances when companies will spend money hiring new employees to take on specific roles within the company. The cost of bringing new people to a business is astronomical. You have wages to pay, benefits to pay and the cost of the actual hiring process itself.
Instead, money can be spared by training existing employees to do new tasks. Your admin team can be trained to use Quickbooks or payroll, negating the need to bring someone in to specifically handle this software. There will still be times when new staff are needed, but you can slash the costs of hiring by simply training your employees instead. Even if you give them a raise to compensate for the extra work, it’s way more affordable than paying an entirely new employee!
Training can prevent cyber threats
Businesses are losing money to avoidable cyber threats all the time. From phishing emails to online scams – and even ransomware attacks – there are lots of digital threats out there. Unfortunately, lots of businesses aren’t equipped to prevent these because human error is the leading cause of cyber threats. Employees make mistakes, meaning your company ends up losing money due to a damaged reputation – or just having money stolen from your accounts.
With cyber security awareness training, you can stop these issues from happening. Educating your employees to identify and prevent cyber threats will help you save a fortune in the long run. There will be fewer attacks, fewer data breaches and less money gets spent trying to deal with these problems. You’re being proactive and making an investment now to stop lots of money from being lost in the future.
Training can lower turnover rates
Employee training can also be responsible for lowering your turnover rates. If a business has a high turnover, it means that too many employees are moving through the organisation. You’re hiring people, but people are leaving, so you’re hiring more people to replace them.
As we already touched upon, the cost of hiring new employees can be extensive. However, the cost of employees leaving your business can also be pretty large. In fact, research suggests that the cost of employee turnover can be as much as £30,000 per employee. So, you need to do everything in your power to prevent people from leaving your business.
Sure, part of this stems from your initial hiring process and ensuring you hire the right people for each role. But, employee training can also be a useful tool to stop people from leaving. Here, you should invest in upskilling your employees yet again. It’s a similar concept to what we mentioned in the first point. The idea of training your staff and improving their skillset means they are more likely to stick around. You won’t promote them right away or give them a new job instantly, but it could lead to that in the future. The fact you’re investing in them and giving them ways to improve their professional skillset will make them feel wanted and appreciated. Thus, they commit themselves to your business and your turnover rate can decrease.
It’s a simple fact that investing in employee training will yield money-saving benefits in the future. There are different aspects of your company that will see these savings. You can lower the cost of hiring new employees while also lowering the cost of high turnover rates. Training your staff to handle online threats can prevent issues from attacking your company and leading to expensive damage control. If you’re not already investing in training, now is the time to start.