Presentation explores the value of training in a downed economy coupled by the fact that few employees in general, based on their education are already workplace smart when they enter the workforce. For book purchase, licensing for the stage or more information please visit our website. Watch video: http://youtu.be/bBvlJYTpW5g Available on Amazon from John DeGaetano Productions http://www.amazon.com/author/johndegaetano http://www.johndegaetanoproductions.com

1. 10 ridiculously
simple reasons why
Training is so
valuable

2. why is
training
so
valuable?

3. Wikipedia says;
The term training refers to the acquisition of
knowledge, skills, and competencies as a result of the
teaching. It forms the core of apprenticeships and
provides the backbone of content. In addition to the
basic training required for a trade, occupation or
profession, observers of the labor-market [who?]
recognize today the need to continue training beyond
initial qualifications: to maintain, upgrade and update
skills throughout working life. People within many
professions and occupations may refer to this sort of
training as professional development.
Wikipedia® Foundation Inc. www.bnkrsu.com

4. so there…

5. Ever wonder what the
average company
spends per year per
employee in training?

6. The average small company
spends about $900 per employee
per year in training costs.

7. The average large company
spends about $500.

8. …or 2% of labor costs,
www.bnkrsu.com

9. or about 25
to 50 hours
per year per
employee of
formal
training…
according to
international
workplace
education and
training
studies.

10. so???

11. That amount hasn’t budged in nearly a decade…
in fact it has actually decreased by 17 %.
It turns out that few employees in general, based
on their education are already workplace smart
when they enter the workforce.

12. However, danger signals are looming.
Statistics show things are slipping and
the proportion of staff who feel their
organization is a “Learning
Organization” dropped…
from 78% in 2002
to around 50% in 2008.

13. In a global economy our fundamental
ability to compete is based on quality,
innovation and niche expertise, because
we can’t win on the basis of low price…

14. …this is suicidal

15. T h in g s to d o
to d ay …
•Educate
•Mentor
•Develop Skills
•Train
Educating and mentoring teams, mostly to develop
skilled sales people and managers is essential.
Small companies who cry out for qualified staff and
neglect to train them in career growth are in jeopardy of
net productivity and wealth loss.
www.bnkrsu.com

16. here is why…

17. Reason #1
Who gets most of
the Training in
organizations?
10 ridiculously simple reasons why Training is so valuable

18. 44% goes to supervisors,
operations staff and in building
sales force performance.
Another 30% goes to
executive, management
functions and management
development.
Small companies, because they
lack the in-house capabilities
tend to spend a lot more per
person than large companies to
compete in the marketplace.

19. Reason #2
Clear
Correlations
10 ridiculously simple reasons why Training is so valuable

20. There are clear
correlations between
high performing
organizations, those
that invest in their
employees.
These companies also experience higher customer satisfaction and produce
products and services of higher quality than other companies do.
That 20% extra training investment accounts for a 38% increase in quality
and customer satisfaction as compared to medium learning performance
companies, and a whopping 82% increase as compared to the low learning
performance companies.

21. The message here is clear:
Learning in the workplace pays back
more than it costs.

22. Reason #3
A Learning
Organization
10 ridiculously simple reasons why Training is so valuable

23. Now translate this for your company
What would be the return in $ to your business if
you increased your customer satisfaction and quality
by 82%
That’s your number
Divide this by $200 (rule of thumb) per employee
and here’s your payback on training.

24. When you really get this and follow
through, you’ll have become a
learning organization already.

25. Reason #4
The Potential
10 ridiculously simple reasons why Training is so valuable

26. Then, add the following
potential results $ values from
increased learning:
· any increase in employee
satisfaction and retention
· any perceived workplace
environment benefits
· and the effect of other
intangibles like better
relationships, communication, etc.

27. Reason #5
The Classroom
10 ridiculously simple reasons why Training is so valuable

28. The Cla ssroom is still king… in fact, 75%
of trainin g still goes on in the classroom.
These are structured events or programs –
classroom workshop
s, motivational and s
courses, incidental c ales
onversations, coach
mentoring, “lunch a ing,
nd learns” and comm
unities of
practice.

29. Some experts
agree that
obsessive web
browsing or
similar – like
online training
can cause
attention spans
to drop to as
little as nine
seconds –
equivalent to a
goldfish.

30. Reason #6
Development
Alternatives
10 ridiculously simple reasons why Training is so valuable

31. It’s now estimated that 42% of the
learning that goes on in
organizations is informal and the
trend is growing.
These figures indicate the increased
value of less formal learning
interventions, such as coaching, the
use of advisors and other
development alternatives and are
bringing in considerable results.

32. Reason #7
Retention
10 ridiculously simple reasons why Training is so valuable

33. Ongoing training keeps wheels
turning and has become an
essential component of
employee retention in any job
market.
Outsourcing makes it easy,
economical and flexible to
customize training to company
needs.
A specialist can take into
account the duration of in-house
sessions, review and give
trainees an accurate idea of their
time commitment, reflection
absorption, etc.
www.bnkrsu.com

34. Reason #8
Driver of
Profitability
10 ridiculously simple reasons why Training is so valuable

35. How effective is training?
Organizations that make large
investments in people typically have lower
employee turnover, which is associated with higher
customer satisfaction, which in turn is a driver of profitability.

36. A second driver is manager proficiency – good
managers determine if people stay or go, and this
is also influenced by training and development.
The education and training variable is the most
significant predictor of an organization's success
as compared to price-to-earning ratios, price-to-
book statistics, and measures of risk and volatility.
www.bnkrsu.com

37. Reason #9
Survival
10 ridiculously simple reasons why Training is so valuable

38. Companies that
fail to invest in
employees
jeopardize their
own success
and even
survival.
The key is contributions in human capital management –
in things like leadership development, job design, and
knowledge sharing.

39. Faltering U.S. economy has affected the decision for
businesses to do ongoing training
However, similar to dried up budgets for advertising dollars as a
deadly mistake, training is the one activity that is a necessity.
Various sources: Economic Trends and Research Data, Conference Board of Canada, United States, Learning & Development
Outlook Report, International Workplace Education and Training Studies.

40. Reason #10
Conclusion?
10 ridiculously simple reasons why Training is so valuable

41. A recent labor relations
study showed that
companies that invested
heavily in employee
training had an increase
in stock performance of
more than 20% and
topped the S&P average
by four percentage points
over a two year period.
Conclusion… even learning about learning shows
us that we still have a lot to learn.

42. 10 ridiculously simple reasons why
Training is so valuable review
1. Who gets the most out of training?
2. Clear Correlations.
3. A Learning Organization.
4. The Potential.
5. The Classroom.
6. Development Alternatives.
7. Retention.
8. Driver of Profitability.
9. Survival.
10. Conclusion…

43. Thank You!
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44. Spotlight on Business
John DeGaetano
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