Companies are spending more on training each year, more than $1200 per employee according to training industry surveys. But what do we spend it on? For many companies the biggest chunk goes to new hire orientation training and annual refresher compliance training. But smart companies know that is not where they get their biggest return on investment. It is in supervisor and manager training.
A recent study looked at investments in supervisory training and how it turned around one company’s bottom line. Researchers started a supervisory class at a U.S. hotel chain and then they measured the impact on the rest of the staff. Here is what they found:
Employee Turnover Dropped – Turnover in employees over a two-year period fell by 40%. That is significant because the original turnover had been nearly 90%, meaning the company was having to replace its staff nearly every year.
Employee Satisfaction Improved – Researchers found that employee satisfaction climbed by more than 10%.
Bottom Line – What makes this study so important is that it looked at what supervisor training did for the company’s employees, not just the supervisors. Turnover is an expensive problem in most industries. There are direct costs for recruitment and training, but also indirect costs in:
- Increased injuries to inexperienced workers,
- Failure to establish a positive company culture with a revolving door workforce, and
- The drop in quality from workers who are still learning their jobs.
Employee satisfaction contributes to turnover, but it also shows up in work quality, sick days and employees who are not engaged.
New employee training is critical and there is no escaping the need for compliance training, but companies that ignore the value of training their supervisors are missing one of the best returns on investment they will get for their training dollar.
Are you ready to establish a training program for your supervisors? Let us get you started with our supervisory leadership class, Buddy-to-Boss. In many industries, companies promote crew members to supervisory or management positions without giving them the tools to be successful. Our program focuses on the critical skills it takes to take the step to being the boss. Contact us at firstname.lastname@example.org for more information.