The new tax act has sent businesses into the best possible crisis they could ask for: what do we do with all of this additional money? Some companies have decided to give it directly back to their employees, whether it be through one-time bonuses like Apple and Walt Disney are doing, stock buybacks like Home Depot and JetBlue, raising wages like FedEx and Chase, or even giving bonuses and raising wages like Walmart.
Other companies, however, are making a different choice and investing in their employees. For example, Boeing recently announced that they would be investing $100 million into training, education, and workforce development. Disney will also be making an investment of $50 million into their hourly employees to cover the cost of tuition.
How can investing in employee training help your company?
- Increased Employee Loyalty – Employees feel like valued and empowered team members when they are invested in. This makes them loyal, which means they are more likely to stay at the company while also referring friends to come work with them. Loyal employees are also more motivated to do their best on the job.
- Decreased Turnover Rate – Replacing an employee can cost a company up to nine months of the departed employee’s salary. A high turnover rate also has an effect on the company’s revenue stream, profitability, and position in the market. Training employees will help them feel more appreciated and valued, which leads to an increase in longevity.
- Advantage Over Competitors – The competition for talented employees is continuing to grow. Potential employees find the idea of an employee development and training program to be an attractive offer.
Thanks to the boom of and demand for digital learning, there have been incredible advancements in the quality and quantity of training. From Fortune 500 companies to small businesses, online training and learning has become the most relevant way to develop the skills of employees, especially in emerging fields such as Internet of Things, big data, and cybersecurity. Virtual instructor-led virtual training or blended training options allow for added flexibility, a must in today’s bustling corporate world, without sacrificing the human element of training. .
At Logical Operations, we firmly support the influx of this tax cut money for training purposes. The need for specific skillsets in the business world means that there will always be a demand for quality training programs and relevant certifications. Investing in your employees has never been more important as the technological world continues to change and evolve. “Hard skills,” such as cloud computing, data mining, software development, and cybersecurity, are some of the most in-demand computing skills in today’s job marketplace.
While money might be a very attractive offer for your employees now, investing in training is investing in both their personal future and the future of your company. Which would you choose?