With budget cutbacks and increasing financial pressures, some employers wonder why they should bother with training at all. It's very simple- your people are your most valuable commodity and it is very costly to replace them. They are the lifeblood of your business and they can be your greatest asset or your biggest liability.

The Cost of Replacing Employees

Merck & Co. which for several years in a row had been rated the # 1 employer in America, determined that it cost them a full year and half of a person's salary to replace them. The US Dept of Labor estimates that it costs a company 1/3 of a new hire's annual salary to replace them. And In 1997, PriceWaterhouse Cooper realized it was losing 1/4 of its staff every year at a cost of $37 million.The cost of hiring, retraining and downtime is substantial, particularly to a small business.You can't afford to lose your good people and you may have unhappy employees and not even realize it.

Employee job satisfaction
USA Today did a study where they interviewed managers about what they thought their workers wanted. The results of the study were interesting. Managers thought their workers wanted:
A. good wages B. job security C. promotions

When USA Today interviewed the workers, they found that what workers really want is:

According to the US Dept. of Labor, 46% of all people who quit do so because they felt they are not appreciated for the work they do. And according to James Howard, a national researcher,when asked what their boss or supervisor says when they complete a task or finish a project 92% of all people said they supervisor said "Nothing."

Stress is A Huge Problem
And if you think stress is something only you deal with as the boss, think again. According to the Gallup organization, 80 % of all Americans are stressed and 50% say they need help managing it.This costs American industry $300 billion a year in sick days, absences and healthcare costs.Clearly, something has to change.

The Solution: Workforce Training and Development

So how do you handle all of this? The key is a good plan for workforce staff training and development. We have found over and over again that when a business starts training their staff in a variety of work skills, both people-oriented and skill-oriented, that productivity and retention dramatically improves. When employees understand each other's personality types and learn how tocommunicate more effectively, there are fewer squabbles and backbiting incidents and morale improves. They function better as a team and rely on each other more. They share information and solve problems together. When employees are given a voice in how management works and when they are consulted for product development and improvement, their commitment levels increase.

When they learn healthy stress management techniques, they are much better able to cope, especially with change and high pressure seasons and events. When they know how to resolve customer issues and are given the authority to be creative in doing so, customer complaints go down and customer retention increases. And when all the staff is aware of the new marketing strategy for a new product roll-out, their enthusiasm is contagious and it spreads to the customers. which m,means increased sales. For you the boss, all of this means higher profits and a better bottom line.

How Do You Pay for Training?

Many states have workforce development grants for training, often matching your expenditure 50/50 for a training program up to $10,000. Check to see what your state offers through their
Workforce Development Division.

The Pay Off
It's been demonstrated over and over again that training more than pays for itself. Training magazine did a study and found that there was indeed a strong correlation between those companiesthat invested substantially in staff training and increased profits.

From my experience as a trainer and consultant over the past 15 years, over and over again, I have seen small businesses shift out of low morale and poor teamwork into greater productivity and performance. I have seen underperforming employees gain new found confidence and increase their energy and output. I have observed negative, recalcitrant workers shift their perspective, reduce their stress levels and start bringing in new business. And I have watched teams build greater relationships with inside the company and out, while developing greater problem-solving skills and a more positive approach to the job. All of this results in a more successful workplace. Reduced stress levels mean fewer sick days, better communication means fewer mistakes, better morale means a happier workplace and better teamwork means greater productivity. All of that adds up to increased profits and greater workforce well-being.

Staff development and training works. As you are planning your fiscal budgets for next year, be sure to budget in money for staff development and reap the rewards by year's end.

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Snowden McFall, Author, Trainer and CEO of Brightwork Advertising and Training and Fired Up! has worked with small businesses and corporations over the last 15 years to help them develop their staffs and improve their profits. She leads programs in communication, teambuilding, stress management, and customer / employee retention. www.firedupnow.com