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Why Employee Training Is Important For Smbs

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by Startacus Admin

A study shows that 40% of employees tend to leave after a year if there is a lack of proper training. This is a massive loss for small and medium businesses as the cost of hiring and onboarding is quite high. Everyone wants to learn new skills and be at a senior position in future. It is high time that SMBs start investing in their employees and minimise the risk of losing people because of lack of proper training. 

Stakeholders and business investors always focus on getting more leads. What they do not realise is that an effective training program for employees can build a smoother work environment with more efficient employees. An investment in a training program can easily repay itself in the long run. The most valuable asset of SMBs is their employees, a good enough reason to invest in their development rather than always focusing on getting more leads. 

Most startups have limited finances and want to invest in training programs at a later stage. A way to reduce high initial investments is by using an employee training LMS for SMBs.

Let’s now look at some of the reasons why employee training is so essential for SMBs

  1. Retaining employees - As mentioned earlier, employees want to build their skillset. Formal training is more likely to retain employees as it offers career growth. The cost of finding and onboarding the right person is quite high; you need your employees to stick around. 

  1. Staff loyalty - You must be familiar with the importance of loyal customers. Loyal employees are as crucial as loyal customers. Regular training is a way of showing that you care about their career growth. 

  1. Employee engagement - Employees look for an engaging and challenging role. A bored employee often brings negative energy with him, which also affects other employees. You need to make sure that your employees are always engaged and not bored with their role. A training program is a perfect way to prevent boredom.

  1. Reduce expenses - Employee training creates a pool of loyal employees, employees that want to stick around. This will help you reduce hiring costs. Think of training programs as an investment, not an expense. 

  1. Creation of leaders/managers - You will that employee training will build a pool of employees who are already familiar with your work and values. Addition of new skills prepares them for managerial or senior roles, and they will be happy to step up if needed. 

  1. To attract quality talent - Companies that offer employee training build a strong reputation in the market. This reputation will attract quality talent to work with you. Nobody wants to hire a robot-minded person who just wants a job and a paycheck. 

  1. To create a collaborative culture - Knowledge sharing is vital within an organisation. Training programs develop a culture of sharing knowledge and encourage employees to learn from each other. A collaborative work culture makes sure that knowledge does not leave your company even if a senior person chooses to leave. This also means that the replacement of that senior person is already present within your company as you have already invested in training one up. 

  1. To avoid spoon-feeding - There are high chances that without formal training, you will need to spoon-feed a new person about how exactly you wish to get the work done. You will need to cross-check every small step which requires a lot of time because of which your tasks get delayed. Proper training automatically develops a certain level of understanding, and the work simplifies. 


Employee training is an obvious solution to some problems within organisations, though easily neglected by many startups and medium businesses. Employee training is a seed that will bear its fruit in the long run. 

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Published on: 12th October 2019

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