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Regardless of what business you're in, as a business owner, manager or executive you know that the people you employ are vital to your success. Consider the cost of NOT having adequately skilled employees.

In 2015, the National Centre for Vocational Education Research (NCVER) surveyed employers on their use and views of the vocational education and training sector. Over one third of Australia’s employers report having staff not fully proficient in their roles – which can have a serious impact on an organisation.

Managing someone that doesn’t have the right skills can be difficult, and not just for you. Staff that lack the proper skills can increase the workload of other staff, drive up operating costs and in the worst cases, lose business or orders to competitors.

The Organisation for Economic Co-operation and Development (OECD) recommends lifelong learning for all adults to boost productivity and earnings, insisting that better skills utilisation is good for business. We tend to agree with this approach.

Well-skilled staff will help your business in many ways, here’s just three.

Productivity

The NCVER has also researched the link between training and productivity across a number of industry areas. The research found that enterprise dynamic was important. Businesses that had high levels of productivity did a number of things well including empowering individuals, encouraging individuals to identify with their work, human resource planning, and of course training that maintained skills.

In some cases it was found that a 10 per cent increase in training can result in a one per cent increase in productivity in some industries. This doesn’t sound like much when you talk about it in terms of percentage, but imagine applying that to your business.

Morale

Focusing on the human resources practice of training and knowledge-building can improve the morale of staff. Businesses that do focus on training their staff see demonstrable improvements in morale, lower levels of staff turnover and report achieving better results.

One workplace factor that impacts on morale is turnover. According to the Australian HR Institute (AHRI), that average turnover is around 18 per cent in larger organisations and even higher in smaller businesses at 22 per cent. One of the best strategies a business can employ to retain staff is to provide robust training and development opportunities.

Author and journalist Tammy Cohen is attributed to the quote a great employee is like a four-leaf clover, hard to find and lucky to have. If you help your staff grow into great employees, in turn, they’ll help your business grow.

Profit

Finally, the bottom-line. It’s not always about making money, but some would argue it is the point of business.

If you invest in your staff, naturally you’re going to want to see a return. Training is a key practice that you need to make part of your business. Whether it’s through a structured program like an apprenticeship, or developing your own training framework supplemented with training from TAFE Queensland, research tells us that training both directly and indirectly affects profit growth.


If you're ready to make the best investment of your life and grow your business then contact TAFE Queensland. We offer a range of training options including apprenticeships and traineeships, short courses, and nationally-recognised qualifications.

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