If there is a key factor you should apply to training your employees for better return on investment (ROI) it’s this:
- Tap their potential
The first step in any employee-training program should be to recognize the skills and experience those employees already have. Then, it’s up to owners and managers to maximize this potential. Do this effectively, channelling it in the right direction, and your company’s performance can improve significantly. In a related area, it’s important for the employees to look on their position in a long-term way.
- Measure ROI
As you begin training employees, you must set goals or objectives in specific terms. To determine whether you’re approaching that goal or have reached that objective, you must have a way to measure progress. Any training must provide information on how the company and the employees have gained from a program.
- Have an Answer
When a training program is discussed and introduced, there will be some employees who will ask why they should devote time and effort to additional training. Owners and managers should be able to provide answers, specific and detailed answers based on ROI calculations. This information can also be used by the employees to determine the value of training as it relates to their personal goals.
- Sales, Income
Perhaps the best way to determine if training programs are having results is to relate the effort to changes in sales activity, company income and overall revenue. It’s a business fact that sales drive business. You may need to provide guidance and training in both sales and customer relations to accomplish this.
- Customer Satisfaction
If you invest in training with a goal of getting better return, your focus must be on repeat sales. It costs more to acquire a new client than it does to keep a current client. Train your employees toward this as a primary goal. Presentation skills can lead to better conversion rates, taking potential customers to the “current customer” file.
- Global Scale
It’s essential for employees to understand how your business operates in the global economy. Competition comes from many locations, not just across the road or in the next town. This can be accomplished with a basic but complete educational program.
- Use a Formula
Try using a simple formula to determine ROI as it relates to cost of training. Here’s an example:
ROI as a percentage is arrived at by subtracting training cost from the monetary gain you’ve measured. Then divide that by the training cost and multiply by 100. You must keep track of all costs, including design, development, promotion, administration, staff time, materials etc.
- Become World Class
Many companies survive by delivering good products or a good service with average customer service. To reach the head of the class, employees must be emotionally invested in delivering the finest quality with unmatched customer service.
- Be Patient
You, your management staff and your employees may not see immediate gains in the ROI sector. But if your training is focused on the key factors above, you will see positive change. Ask the questions: Can we try cannabis for better results?
- Measure reduction in loss – accidents, workdays etc.
This is simple. Less of these is more for the company and for the employees.
