A common oversight businesses make is to stop investing in people after the recruiting, interviewing, and hiring is complete. According to Clear Company, most employers and managers aren’t entirely confident in their employee training and development efforts. “It is an often overlooked part of employee investment, and it’s more important to workers than employers probably realize.”
“Any company has to recognize that not only is the human capital of their employees a major asset, it is also a depreciating asset that needs continuing investment.” Keeping worker skills up to date keeps a company in the running.”
Why Retail Sales Training is So Important
The Cheesecake Factory has an employee retention rate of about 15% better than the national average. Want to know why? They understand that their greatest asset is their employees and make a point to invest an average of $2,000 on training per hourly worker each year,
As Shift Learning points out, untrained employees who feel underutilized are more likely to become frustrated with their job and will be less loyal to their company. This translates into reduced productivity, more mistakes, and failure to meet minimum standards.
A common misconception is that providing training will prompt employees to move on to other companies, but this isn’t the case. Properly trained employees who feel that they are valued are actually happier in their jobs.
“The problem is that training is seen as an expense and not as an investment. Untrained employees will, inevitably, lack the knowledge to use company resources properly, which will lead to waste, in a service industry; lack of knowledge about procedures will affect customer interaction and retention. Because of this, your employees, your company, and your clients will all suffer.”
Source: Shift Learning
Need more proof that employee training and development is essential to your retail business’s success? Check out these compelling statistics from Shift Learning:
- According to an IBM study, employees who feel they cannot develop in the company and fulfill their career goals are 12 times more likely to leave the company.
- Rehiring costs represent about 12% of a company’s expenses with up to 40% for businesses that have a high turnover rate
- 70% of organizations say that staff turnover has a negative financial impact (due to recruiting, hiring, and training costs).
- Companies that put an emphasis on employee development make a median revenue of $169,100 per employee while companies that don’t only make $82,800.
- As per HR Magazine, companies that invest $1,500 on training per employee realize an average of 24% more profit than companies who invest less.
- A study of more than 3100 US workplaces revealed that a 10% increase in educational development produced an 8.6 gain in productivity.
Overall, studies indicate that when companies invest in workplace learning, they enjoy higher net sales per employee and higher gross profits per employee.
“Ironically,” says Business Insider, “the biggest inhibitor to putting a training program in place is the perception that it will take too much time…there is no investment that you can make that will do more to improve productivity in your company.”
“A company is only as good as its employees, and those employees are really only as good as the resources put into them.”
Source: Shift Learning
There is no question that businesses improve when their employees are continually empowered through training and development. Not only does employee progression increase productivity and profits for organizations, but it also plays a huge role in employee retention…because a happy employee is also a loyal one!
When employees receive the proper retail sales training, they will develop the confidence and skills that will help them improve conversion rates and create exceptional customer experiences that are downright rave worthy. This will give your retail business the competitive edge you need to achieve your organizational goals and realize better profits.