Training drives growth

 

Why invest in staff training

Training drives growth and enhanced organisational financial performance. (1)

 

16%

The average rate of staff turnover in Australia over a 12 month period

$385m

The annual amount lost in Australia due to avoidable staff turnover

3%

The increase in revenue linked with a 5% increase in employee engagement


Retention

The cost of lost productivity due to turnover in Australia over 12 months is $3.8 billion. (2)

The provision of continuous learning and development options for staff helps to decrease turnover and bolster organisational performance by:

  1. Increasing job satisfaction and employee loyalty

  2. Improving corporate culture and reputation among potential employees and clients

  3. Attracting employees who are interested in bettering themselves and growing with your company

  4. Facilitating internal promotions – shown to cost significantly less, perform significantly better, and be up to 20% more likely to stay with your company than external hires (3)

In addition to technical acumen, a well-structured training program builds skills in communication, team work and leadership at each stage of the development pathway, allowing employers to create a pool of capable staff, determine individual strengths and weaknesses, and identify potential candidates for promotion.

Providing employees with opportunities for career development increases staff retention rates and helps a business build a strong and loyal team.

As LTT also trains external students in our training centres in Brisbane, Melbourne, Sydney and Perth, we can work with companies looking to hire lab assistants, lab techs, pathology collection staff and more, enabling employers to circumvent the usual expenses involved in training and recruitment – including the costs of advertising job vacancies.


Compliance

Many industries are required by various governance bodies to provide staff training. Whether your organisation is regulated by a state, healthcare, or other regulatory authority – or is one of the many laboratories in Australia accredited with the National Association of Testing Authorities Australia (NATA), LTT can assist.

We work with employers to design, develop and implement tailored solutions that meet training obligations and provide detailed evidence of programs delivered to support compliance.

Productivity

Engaged and skilled workers are more productive – and employee training programs assist in both regards.

Professional development can cultivate corporate culture by sustaining personal growth and optimism and empowering workers to fulfil their potential. (4)  In fact, happy workers are 12% more productive. (5)  In addition to ‘soft’ benefits, employee learning is considered critical to organisational performance and training can have strong positive effects on both labour productivity and profitability – in fact, new hires that undertake an onboarding program become competent four months faster. (6)

Actively disengaged employees make up over 80% of the Australian workforce, at a cost of $33.5 to $42.1 billion to Australian businesses each year. (2)  Investing in continuous training and development helps to increase employee engagement, efficiency and proficiency – and avoid the damaging effects of disengaged workers.


Agility

Employer-supported training boosts competitive advantage: skills development assists firms to adopt new technology, implement innovative HR management practices, and improve productivity. (7)  Well-trained workers support the long-term success of their organisations by facilitating flexibility and responsiveness to changes in market conditions.


Check our references

(1) According to Australian research from NCVER, investments in training have a clear positive influence on sales and profitability, as long as training is aligned with an organisation’s approach to innovation.
(2) As per reports on the costs to Australian businesses of employee turnover and disengagement.
(3) External hires get paid more and perform worse than internal staff, according to research from an Ivy League business school.
(4) From British research into professional development and employment capital.
(5) Economists also found that unhappy workers were 10% less productive.
(6) According to research into the impact of employee training on business performance from the US and UK.
(7) Within Australia and internationally, employer-supported training has benefits for individuals, firms and society.