Today we work in a knowledge-based economy. What your employees know is what generates profits. This is compared to prior periods in our history when machinery was how you improved the bottom line.
What do you need to achieve higher profits? Let’s look at a few things.
Profits from Performance Management Training
Here are some basic statistics looking at public companies. Oh, and don’t you dare say they do not apply to your business because it is smaller. That is 100% BULL, they do apply.
- Firms that invest $1,500 per employee in training, versus $125 per employee in training had a 24% higher gross profit margin on average and 218% higher revenue per employee (Laurie, J. Bassi et. al., “Profiting from Learning”)
- The restaurant chain, The Cheesecake Factory spends $2,000 per hourly employee on training and reaps sales of $1,000 per square foot – more than twice the industry average
- Other examples where training improves profits include
- Lowers employee turnover because of higher job satisfaction
- Better-trained staff requires less supervisor involvement
- Better-trained and satisfied employees translates to higher customer satisfaction
Where is your Organization in Terms of Performance Management Training?
- When is the last time you scheduled job skills training for your employees?
- When is the last time you scheduled team building training for your employees?
You are missing out on PROFITS if you are NOT doing these things on a regular basis!
A Lesson from Sports
EVERY sports team from youth sports to the professional leagues requires the players to train on their individual skills as well as train on teamwork. Your team is no different! The 7th Key of the 15 Keys to Building a Quality Long-Term Organization is Training. Check it out…
So what did you think? I mentioned in the video that I have a more extensive video specifically on training. It is a part of a 5-part video series I did last year called Higher Profits through Improved Employee Performance. Part 3 deals with training. It is 13 minutes and will be very profitable to watch.
What are you waiting for? It is time to take ACTION! Contact us to discuss executive business coaching, strategic business consulting and performance management training. We want to make you a more POWERFUL MANAGER.