Many company owners take time to develop onboarding plans for their new hires. This onboarding generally includes an overview of the company and employees’ new roles as well as on-the-job training sessions to familiarize employees with their new positions. Too often, owners complain about high new employee training costs. What many decision-makers have discovered, however, is that initial and continual training has positive impacts on their workforces and — in many cases — their bottom lines.
Lack of training can be costly
While employees often make mistakes in the workplace, employers can take preventive measures to keep these mistakes from becoming too costly. One of the most effective ways to help minimize mistakes is through training. Decision-makers who take the approach of spending appropriate time and money on training often discover that their investments pay off in the long run; simply put, training often results in fewer costly mistakes.1
Some other training investment benefits may surprise you. Employees whose employers offer training are more satisfied with their jobs, are more likely to feel valued on the job, and are often more productive on the job.2 In fact, 35% of millennials place a higher value on training and development than they do on good benefits packages or flexible work schedules.
Training and credit management
One vital training area is collections management. Collecting on your invoices isn’t always easy — but it has a direct impact on your bottom line. However, if your credit management staff members are unaware of which laws they must follow during collection activities, you could end up facing steep fines and other costs.
Credit management staff members also need to be able to evaluate credit risks. Educating your staff can mean a stronger workforce, fewer opportunities for mistakes, and even a possible improvement in your collection efforts. Credit drives many aspects of your business: Without the ability to offer credit, you’d likely have lower sales numbers. Making sure you have a robust training program in place could pay dividends in the long run.
Internal or external training
Some company decision-makers prefer to do their training internally. However, internal training has limitations: Subject matter is an important consideration, and if you need your credit management team to be up to date on the latest regulations and collection methods, you may fare better with external trainers. Remember, the longer someone has been a part of your organization, the more likely he or she is to have built-in biases as to how things should be done.
1 Cordray, Robert. 2015. “How Your Training Process is Affecting Your Bottom Line.” Business 2 Community. May 17. Source.
2 Gutierrez, Karla. 2016. “The True Cost of Not Providing Employee Training.” SHIFT Disrupting Elearning. May 6. Source.