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Is your training a cost or an investment

Audit and Improve / Thursday 4th of May 2017

In my previous Blog, I looked at the apparent shortfall in training within UK businesses Business is heading for Competency Armageddon. But how does British business really start to pull themselves back into a world leading position?

The CIPD report of the 19th April (see References below) showed that UK employers spent an average of £200 (euro equivalent) less per employee on training in 2010 than their european competitors.

£200 might not seem a large number but let’s equate that to wages; at 2010 rates, the average weekly wage was £501 per week (See ONS 2010) So roughly speaking, £200 is equivalent to 2.5 days work. That means, every worker across the channel was getting 2.5 days a year more training than our people in the UK. Add that up over time, and it starts to show; a 38 year old worker, who has been working since they were 18 is 50 days less well educated than their European counterpart. That’s 10 short courses in a University! Imagine how much better you could be with those under your belt! 

It’s not simple though; no employer in their right mind is going to start giving their staff extra time or money to train are they? Why would they? Well, here are some interesting facts and figures:

Untrained people are more likely to leave. In general people leave a job because they don’t like their boss, or they don’t see opportunities for growth, or get offered more money (HBR 2017). You can’t change the boss bit, but you can change how someone feels about personal growth with training and development. You give people ownership, value, and the opportunity to grow into their career with training.

People that leave take knowledge with them; Studies show that even untrained people will take skills and knowledge about the business with them, but more importantly, they take Organisational Knowledge, which is developed over time and by all the team in such a way that benefits the organisation (Wiley 2001) In some cases, that could be critical Intellectual Property (IP) that only your organisation has. Now it’s on the market.

The cost of replacing people is expensive. Really expensive: First of all, you’ve no-one doing the job. Then you have to spend time and money getting someone into the business. If they stay more than a day, you’ve got to show them how to do the work. Average recruitment costs in the UK are £4500 (Monster 2017), but that pales into insignificance when you add all the management time you’ll spend.

Still think training is a cost? Perhaps it’s time to think again. In our next article, we start to explore the requirements of the 9001 standard on competency and training so you can start your journey.

Fortunately, we can help you invest in your people.

If you are ISO 9001 certified or looking to implement a Quality System, why not refresh your knowledge and awareness of your teams with access to our ground-breaking Knowledge Base.

In addition to information about the Standard, you (and your teams) can cement and recognise your learnings. By access to our simple, effective and CPD accredited ISO9001 Awareness Training Module, you can demonstrate your knowledge and be formally recognised for your achievement. 

We are confident that this will directly enhance ISO awareness, buy-in and quality within the business.

Watch the introductory video here and Subscribe by clicking the button. Its Free! Then just follow the on-screen instructions.

Our Website also tells you more about us, so if you are looking for Management Systems Consultancy, just Contact Us, email chris@spedan.co.uk or phone 01908 255525

SPEDAN   We Inform, Support and Sustain

References:

ONS (2010): http://webarchive.nationalarchives.gov.uk/20160105160709/http://www.ons.gov.uk/ons/rel/ashe/annual-survey-of-hours-and-earnings/ashe-results-2011/ashe-statistical-bulletin-2011.html

HBR (2017) Review: https://hbr.org/2016/09/why-people-quit-their-jobs

Wiley (2001) http://onlinelibrary.wiley.com/doi/10.1111/1467-6486.00268/full

Monster (2017) http://hiring.monster.co.uk/hr/hr-best-practices/recruiting-hiring-advice/managing-hiring-costs/what-are-the-general-costs-of-using-recruitment-agencies.aspx

Adam Faiers