Developing skills of the existing workforce is an important strategic objective of any organization. There are multiple benefits of investing in a development strategy for employees, like:
Learning and Development is a key factor in keeping employees motivated. Studies done on Personal Engagement attributes have shown that employees place continuous learning among the top three engagement drivers. If they feel that their learning is stalled then they look for change. A robust L&D (Learning & Development) program would ensure that the workforce feels they get enough support from the organization to develop their skills, thus building loyalty.
Reduction in Recruitment Cost:
With the right strategy and an effective L&D program, employees could be trained in skills which are difficult to come by. It is cheaper to train an existing employee than to hire from outside.
Improvement in Productivity:
In addition to development of new skills, existing competencies could be fine-tuned with the right training program. This would automatically translate into an improvement in the overall productivity.
Effective Succession Planning:
With the right mix of developmental training and fine-tuning of existing competencies, employees could be prepared to take key positions that become vacant from time to time. There is lesser risk, and cost, involved in filling a key position with an existing employee compared to an external hire. The creation of an internal talent pool would help the organization minimize cost and risk.
With multiple benefits that directly impact the bottom-line, it is not surprising that Fortune500 organizations invest heavily in corporate training management systems which help them to plan, deliver and track Learning & Development for the entire workforce. However, the smaller organizations were unable to duplicate this model as they lacked the resources to effectively manage and execute the strategy. This was primarily due to the heavy investments required in IT resources, infrastructure and software required to manage such systems. Fortunately, with the advent of cloud based applications, this barrier has been broken.
Cloud based applications are more cost effective than on-premises software, and with the running and maintenance effectively managed by the vendor, they do not eat into an SME’s existing resources. Consequently more SMEs are now looking at implementing cloud based training management systems to reap its benefits.
A great example of how an organization benefited by deploying a cloud based training management system could be found in Deskera working with Great Eastern to improve training efficiency by 48%.
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