Struggling to find qualified staff? Why not upskill the ones you have? The answer to the skills shortage could be under your nose.
Here are five reasons this financial year is the perfect time to invest in staff training…
1. The pay-off is literal:
Training isn’t an expense; it’s an investment. And this year it has a quantifiable return. Small businesses that spend on staff training in the 2022/23 financial year can claim 120% of the cost as a tax deduction. There are, of course, some caveats. The small business skills and training boost, announced as part of the previous Morrison Government’s Budget in March, only applies to businesses with an annual turnover of less than $50 million. There is also a cap on expenditure of $100,000 and training must be provided by a registered training organisation (RTO) to qualify. But if your business meets the criteria and you spend $50,000 on eligible training this year, you can claim a deduction of $60,000.
Courses are available in everything from forklift operation to customer service and marketing. Remember, State Governments also have training subsidies in place that RTOs may be able to advise on. Business owners can check provider registrations on the government’s national database.
2. Training helps attract and retain staff:
A survey of 1800 Australian workers published by Pricewaterhouse Coopers (PwC) at the end of 2021 found an alarming 38 per cent of employees planned to leave their job in the next 12 months. The what workers want study found one of the top-five levers employers had to help retain and attract staff was career development. Talented workers want to feel they are growing and learning. This can include formal training programs, study leave, feedback and mentoring.
Upskilling staff is an essential part of developing a career path, but it also builds loyalty because employees feel the company has invested in them as individuals. Lack of career development has been cited as the number one reason employees quit. On the flip side, employees with specialised training are more likely to recommend their company to others.
3. Well-trained employees deliver a better customer experience:
We’ve all been there as a customer – an employee doesn’t know what they should do, or even can do, to help you with an issue. It’s frustrating for the client and embarrassing for the staff member. On top of that, the business loses time and credibility while that staff member seeks help from others.
Training empowers employees to be proactive, boosting engagement and loyalty. Having the knowledge and skills to do a job well lifts staff morale and satisfaction. That can span everything from the practicalities of operating equipment to the soft skills of people management. Well-targeted training also drives productivity and profitability by ensuring customers are more likely to have a consistent and positive experience.
4. Training turns co-workers into teams:
It’s a sentiment that was a little over-cooked during COVID, but “we’re all in this together” is a powerful message. Training can play an important role in bonding employees. This can be achieved through co-workers attending training courses together, or through knowledge-sharing and mentoring in the workplace.
A PwC survey on what workers want in 2021 found employees ranked working with good co-workers first on a list of workplace priorities, above salary and working from home. Training facilitates healthy workplace relationships by upskilling staff and building an appreciation for what others in the organisation do and how they contribute and support other areas of the business.
5. You can teach everything except attitude:
The business adage ‘hire for attitude, train for skills’ is attributed to the maverick billionaire Herb Kelleher, co-founder of Southwest Airlines, a company famed for its unique corporate culture and customer service. Following Kelleher’s motto – as many corporate leaders do – means businesses that focus investment on training can, within reason, broaden the search for talent beyond a specific skill set. In fact, some leaders, such as ING Direct USA founder Arkadi Kuhlmann, advocate hiring industry outsiders free from preconceptions or bad habits. Otherwise you have to untrain them before you train them. If you have great staff who lack some skills, always consider training them to step up and fill internal vacancies.
Original article: https://marketingcdn.afgonline.com.au/email-assets/SMART/Insights/JUL%2022/Article-0001.html