You have you already prepared a capital expenditure plan for this year, haven’t you? How much return are you expect to achieve? 10%, 30% or 50%? But you know what? – ROI amounting to 1300% is highly possible!
“Those who invest in vocational training and continuing education set the course for the future.” (Professor Dr. Annette Schavan, Federal Minister of Education and Research of Germany)
While investing the funds you possess you recognize that a certain amount spent on one good or service cannot (unfortunately!) be spent on another good/service in the same time. That means, you always have to make a choice and to determine which investment will bring you the best rates of return. You decide about your investment priorities and resign on expenditures which are not prospective enough in your opinion. And what about training in this context? Are expenditures in training rentable or not?
According to the findings of one study undertaken at the University of Linz (Austria) in 2008, each euro spent on employee trainings provides 13 euros return or 4% increase in productivity
. Further findings of the study are as follows: trainings organized inside the company have higher positive effect than those offered by external institutions. And: personality trainings (focused on soft skills) bring more productivity than language, marketing or IT trainings. Moreover, companies investing in training measures, usually offer higher wages and salaries than those which cut their training budget.
However, not each business owner understands the benefits continuous education offers and many of them do not invest time and money to give a proper training to their employees. And many of those who even recognize the opportunities offered by training, do not give their employees the opportunity to financially participate in the additional productivity they perform thank to new skills learned.
And… How about you? How much are you going to spend on training this year?