Training can ‘save money’ as well as boost skills

3 November 2008

Employers who have formal in-house training policies stand to benefit not only from improved skills levels but also from cost savings, a new study has claimed.

The report, entitled Nurturing Talent and produced by the Cranfield School of Management, found that, in a survey of over 1100 organisations, 78 per cent of employers believed that skills development was more beneficial than recruiting staff externally.

The study also revealed that firms that invest in staff development are more likely to cut costs, boost staff morale and improve worker loyalty.

As important as the training is the way in which it is implemented, the report went on to argue. Organisations that use formal training policies tended to be more successful than those that trained people on a non-structured basis.

Despite the majority of respondents agreeing as to the value of developing the talents of their workforces, only 34 per cent of employers had formal training strategies in place.

Dr Emma Parry, a senior research fellow at Cranfield and the author of the report, said: “With training budgets arguably amongst the first to go in a recession, this research demonstrates that growing your own is an effective way for organisations to obtain the skills they need while saving money.

“For employers, the nurturing talent concept means managing and developing employees to achieve business goals. This could include training; employee coaching; staff mentoring; and job enrichment to stretch employees with new tasks.”