THERE IS A HELL! - - - IT IS CALLED RETAIL WHY COMPANIES FAIL TO TRAIN THEIR EMPLOYEES | Page 3

WHY COMPANIES FAIL TO TRAIN THEIR EMPLOYEES

There is a measurable cost to that training, but is it worth it? Let's look at some of the
issues.

Some Background Facts

The technology in the workplace is changing very rapidly and companies that can't keep up
will drop out of competition. A survey by a Skills Development Office found 63% of the
respondents planned to "introduce new technology into the workplace that would require
staff training." A third of the respondents included "improving employee job performance"
and "keeping the best employees" as desired outcomes.
The BRITISH Society for Training and Development (BSTD) reports that less than ~ UK£750
per employee was spent for training in 1996. The largest part of that (49 percent) was spent
for technical and professional training. Only two percent was spent for New Employee
Orientation and three percent on quality, competition and business practices training.

Reasons To Not Do New Employee Training

Even at the less than ~ UK£750 per year for training an emp loyee I reported above, it is still
a cost. For some companies, especially those with traditionally high turnover, it can be a
major expense. If your profit per employee is less than ~ UK£750, it would be difficult to
convince the stakeholders that training is justified.
Besides, we all know it is the responsibility of the school system to train people to be
workers. And it is the worker's responsibility to learn how to do a job so they can get hired.

Why Do New Employee Training

Not surprisingly, all the reasons not to train new employees
(except cost itself) are actually reasons to do that training. If
you have high turnover, training new employees will make them
more productive. They will feel better about themselves and the
job. They will stick around longer.
If your profit per employee is less than ~ UK£750 per year, you
have major problems. You need to start training all your
employees, not just your new employees, right away. Show your
stakeholders the potential ROI of the training as we will discuss
below.

And if you still believe that our schools provide adequate training to make students labourready you are living in a dream world. Yes, some job seekers make the effort to learn on
their own the skills needed for a new job, but most get that training on the job.
dodie ste®eo p®odu©tion ™

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