Training can be a source of a competitive advantage for a company. The primary benefit to the company is the result of an accumulation of smaller benefits. Training provides greater skill and knowledge to the employees, which translate into any number of improved job performances. The belief is that providing employees with training will result in increased profits—the improved performance or error reduction of the employees results in cost reduction for the company (Pfeffer & Viega, Putting People First for Organizational Success, 1998). The company is not the only beneficiary of employee training; the employee benefits quite a bit as well.
The well-trained employee creates an advantage for him or herself. By attending training sessions, employees can deepen their existing skill set, increase their overall skill set and increase their understanding of the organization. Additionally, the trained employee becomes more marketable in the event that he or she searches for another job—more and better skills will often lead to better or higher paying jobs (Kulik, 2004).
These are not the only benefits that the company and employee enjoy as a result of utilizing a company’s training systems. Below is a list of other benefits that both may enjoy:
- increased job satisfaction and morale among employees
- increased employee motivation
- increased efficiencies in processes, resulting in financial gain
- increased capacity to adopt new technologies and methods
- increased innovation in strategies and products
- reduced employee turnover
- enhanced company image, e.g. conducting ethics training (note that this is not a good reason for ethics training!)
- risk management, e.g. training about sexual harassment, diversity training (Duening & Ivancevich, 2003)