Training and development for SMEs – why it’s worth the investment

To some small businesses, training and development (T&D) may seem like a time-consuming, box-ticking exercise or an unnecessary expense in difficult times. But getting your T&D plan right can bring big benefits to recruitment, retention and productivity, all of which are critical when in recession or in a candidate-led market. A strong T&D policy could help your company grow, adapt and endure.

Having a good T&D strategy in place is an important part of a company’s overall business plan, as developing staff skills and competencies can help firms reach targets, explore new avenues of revenue, outdo the competition and build a stronger team to drive the company forward.

Here we look at how T&D can benefit your business, from staff retention to succession planning.

A good training and development strategy can…

• Identify and work on weaknesses

A good training plan and skills audit will reveal potential weaknesses in skillsets. Whether these weaknesses are as a result of insufficient training when first starting the job or have come about over years of building bad habits, a T&D plan can identify gaps in skillsets and put in place a training programme to put the worker back on the right track.

• Strengthen skills

Keeping your staff’s skillset updated has various positive knock-on effects on both your business and your workforce. It will increase employee confidence knowing they have the skills they need to do their job to the best of their ability. It will make them more efficient and effective in their role, and will likely increase productivity as a result.

• Increase productivity and job satisfaction

When your workers feel they have the training and skills they need to do their job, they will likely feel more confident and more willing to do it as well as they can. As their employer, showing an interest in their development shows that you care and want them to succeed, which boosts workforce morale. Contented workers are likely to be more productive.

• Raise retention

It’s still a jobseeker’s market, with more jobs than candidates, so give your employees more reasons to stay by developing them to their full potential. If they feel valued and challenged, and can see that their career is invested in, they will see a future at your firm.

• Nurture leaders and identify successors

A strong T&D strategy not only helps to keep skills topped up, but also provides opportunities to identify employees who show leadership potential. Developing leaders from within your company can be preferable to recruiting externally because of the knowledge and experience internal candidates bring. It also shows your workforce that hard work, commitment and ambition can be acknowledged and rewarded.

Nurturing and upskilling potential leaders can help to plug the gap after a retirement, mitigate the effects of any sudden staff departures, and form part of a strong succession plan for senior leadership roles.

• Attract the best candidates

Having a good T&D strategy in place will not only be beneficial to your current employees, but will also be a great selling point to entice new employees to a role. If a candidate knows their career development will be taken seriously, that there are opportunities to develop their skillsets or fulfil their ambitions to take on a management position, this may give you the upper hand against other employers.

Training resources

You can find information on how to cost up and benchmark a T&D strategy here.

Apprenticeships are a good way to bring in and nurture fresh talent, with a high percentage (64% in 2018 Simply Academy) staying with their employer after the apprenticeship is over. What’s more, the cost of this type of training can be shared with the government for qualifying companies. Find out more about apprenticeships in general hereand about funding apprenticeships here.

If you need help with recruitment, call our friendly team of experts at Key Appointments on 0844 504 4666 or drop us a line at info@key-appointments.co.uk.