Results of Training
· For many businesses, worker health and safety is the number one priority.
· Reduces workplace incidents.
· Employees lacking in knowledge and skill are more likely to have an incident in the workplace. Many incidents happen because staff have not had the essential and required training for the use and handling of plant and equipment.
· Adhere to and/or maintain quality standards.
Recorded Benefits of Safety
Reduction in Load Shifting at Pacific National. ROI after 12 months stood at 139%, paid for itself after 5 months.
TOLL IPEC Safety training for Truck Drivers. Workplace incidents reduced over 30%. Source: Anecdotally – Ron Horne.
Training to improve workplace safety performance. Reduced Lost Time Injuries and Medical Treatment Cases from 4.23 per month to 0.73 per month. Aided in reduction of Work Cover premiums which resulted in a ROI of 1277% in Year 2. Cost reduction is in the “six figures”. Source: Huntsman Chemical Company.
· Customer service and best practice training can help you develop a consistent level of service.
· increased customer satisfaction leading to increased customer retention and in some cases expanded order patterns.
Recorded Benefits of Customer Satisfaction
ANZDL Management Leadership training. Reduced storage costs to customers by streamlining storage processes. No ROI given. Source: ANZDL.
Avoidance of penalties through efficient completion of contract. Mining example – At best training had a return of 250%. Source: Western Mining Company.
Competitiveness / competitive advantage - industry specific training can help you stay ahead of the competition. Source Linfox.
· Improved operational performance overall.
· Broader outlook and an improved understanding of dynamics (cause and effect, inputs and outputs).
· Reductions in the inefficient use of time and materials.
· Increased productivity and innovation due to employees working more effectively.
· Additional skills can mean faster and often smarter ways of working.
· Improved maintenance costs for equipment, and overall operating costs for vehicles, plant and equipment.
· Less wear & tear on tyres/brakes, improved fuel/oil consumption.
· Behavioural safety is a big issue – people choosing the wrong way to do something or ignore the correct way as its quicker or easier – this leads to more incidents / near hits.
Recorded Benefits of Productivity Increases
Increase in labour productivity. Anecdotally an ROI of up to 30% has been reported. Source: Ron Horne.
Investment in simulators. Speed up training process, people working more productive. Possibility to return $750,000 a year, in savings and increased productivity. Source: Flinders Adelaide Container Terminal.
Train Driver Simulator Training. Fuel usage fell overall by over 6% and by 18% for drivers that showed an overall improvement in their performance after training. “Buff” and “Draft” forces fell by 21% and 48% respectively, and as a result rollingstock maintenance costs were reduced. After year 1 a conservative ROI was estimated at 30% and greater benefits would accrue over time. Source: Aurizon.
Training to reduce admin costs, eliminate unnecessary suppliers, increase staff productivity. Reported an ROI of 323% (Didn’t take in effect all (some unmeasurable) benefits) Source: Hapag-Lloyd
Increased Employee Morale/Motivation
· Employees develop skill sets which allow them to undertake a greater variety of work.
· Increased morale and staff retention.
· By offering training to your staff you can build a sense of worth and increase staff retention levels.
· Increased ability to respond effectively to change.
· Improved ability to implement and realise specific goals outlined in a company's business plan.
· Always having a backup for key jobs by multi-skilling employees in various roles.
· Training provides an exciting career alternative for skilled employees other than management paths.
Recorded Benefits of Increased Employee / Morale
Qualitative research implies companies who actively engage in training are less likely to lose their employees. Mercer Human Resource Consulting reports suggest cost of turnover can be equalled to anything from 50% to 150% of an individual’s annual salary. Source: Mercer Human Resource Consulting.
Studies suggest the wage effects of formal training for Australian workers is between 4% and 11% with 8%-9% being the average. Source: Michael Long (2001).
Company Reputation and Profile
· Attracting more skilled employees.
· By being recognised as an employer who provides greater training opportunities, as you value them enough to invest in them.
· Training also makes a company more attractive to potential new recruits who seek to improve their skills and the opportunities associated with those new skills.
· A highly trained and skilled workforce who live and breathe safety and has a high incident free workplace is a highly recognizable draw card for job seekers and potential new business.
Recorded Benefits to Increased Company Reputation and Profile
Adelaide Airport ran an extensive staff training and awareness campaign to improve energy 'habits' and to reduce electricity used throughout the airport's facilities. Aided in Adelaide Airport becoming the first Australian capital city airport to achieve Level 2 accreditation from the Airport Carbon Accreditation programme for managing and reducing carbon emissions. Source: Adelaide Airport Limited.