What Impact Does Staff Training Have On Your Company's Bottom Line?

Team training and business growth shouldn’t be mutually exclusive. Recent studies have found that investing in your team can increase employee retention and overall profit margins. Your employees are as important as your customer base, and how they interact can grow (or shrink) incoming revenue

Training your team enables rapid growth that’s scalable in terms of productivity and overall size. If you're a small business looking for growth opportunities, your team should be priority #1. The most effective way to increase your bottom line long-term is to ensure your team’s training is accessible and engaging. Below are some proven examples of how training can increase revenue.

Business growth that’s scalable is the focal point of how training increases revenue for a company. The most direct way to understand this is to review how a training process such as sales enablement leads to productivity, business growth, and increased profitability. So how does this process work?

For sales enablement, let’s say you have a new sales team member joining your BDR’s. This person has some previous experience before coming on but is still fairly green compared to your team. Each member of your team is bringing in x number of conversions and hitting a target sales goal. That new employee, under traditional circumstances, could feasibly match the rest of their team in between one and three years. That’s because it will take repetition, trial and error, and a wealth of experience to attain the same skillset higher-performing members of the team already have. This can create friction for the business growth of startups that need to scale expansion rapidly to compete at the market level.

What a training process like sales enablement does is take the knowledge of your top performers and transfers it in such a way that even new team members can close the gap. And they can do so in weeks instead of years. This is done through a variety of knowledge capture and training resources that make the best practices available to your whole team. How does this type of training affect the average team? Here are some statistics on how training can affect your business growth and revenue (both positively and negatively):

• Companies with highly engaged teams achieve a 21% increase in profitability.

• 69% of employees will reject a job offer if they find out that a company’s workers are generally unhappy (not great for new hires).

• It can cost as much as 20% of an employee’s salary to replace them (not to mention the chance of losing a team winner to a competitor).
• Without effective onboarding and enablement training, turnover can be as high as 50% for employees in the first 4 to 18 months (and that’s another 20% to replace the replacement or new hire!).

• On average, more than 50% of sales teams believed training was effective to reach desired outcomes.

• 84% of employees in Best Performing Organizations are receiving the training needed to accomplish their goals.

We could keep going, but you’re probably starting to see the point with all of these—training is the most effective way to grow and enable your team’s (and company’s) success. Without training, your staff can feel unengaged and may weaken your productivity or even drop your retention rate.

 





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