20 Feb

Can you afford not to train your employees?


As a result of the current economic challenges facing not only South Africa, but the world, employers have been focussing on dramatically reducing expenses and streamlining their businesses. One of the ‘victims’ of this approach has undoubtedly been employee training.

Perhaps the wisdom of such a decision should be questioned:

  • Should business owners focus on cutting costs, whilst waiting and hoping for an upturn in business – OR – should they rather find ways to increase real productivity and profit, and thereby create better opportunities themselves?

The business owner who believes in creating opportunities, should keep in mind the following research related to training:

  • In a study of more than 3100 workplaces in the USA, the National Centre on the Educational Quality of the Workforce (EQW) found that on average, a 10% increase in workforce training led to an 8.6% gain in total productivity, whilst a 10% increase in the value of equipment increased productivity just 3.4% (an investment in people, therefore, seems to be more profitable than an investment in equipment).
  • Another study by ASTD (the world’s largest professional association dedicated to training and development) showed that “Leading-edge” companies trained 86% of employees while “Average” companies trained only 74% (“Below-average” companies trained far fewer employees). The “Leading-edge” companies were also found to spend twice as much on training per employee.
  • The same study showed that companies that invest the most in workplace learning yielded higher net sales per employee and higher gross profits per employee.
  • Leading researchers on Training, Salas & Cannon-Bowers, stated that investment in human capital in the form of training not only creates competitive advantages for an organisation, but also encourages innovation, provides opportunities to learn new technologies and leads to an improvement in employee skills, knowledge and firm performance.

In short, companies investing in employee training show higher staff-morale, higher productivity and ultimately higher profitability!

With SEESA Skills Training, you can provide your employees with highly professional, empowering training at the most competitive cost.

For a fixed monthly fee the following services are included:

  • 17 + Training Courses
  • SDFs (Skills Development Facilitators)
  • Assistance with Mandatory Grant Claims (WSP & ATR Assistance)
  • Advice on Discretionary Grants
  • Employment Equity Assistance
  • Facilitation of F1 Forklift Licence Renewals (GAUTENG ONLY – External costs applicable)
  • Facilitation of Learnerships (GAUTENG ONLY – External costs applicable)


Business Essentials is Africa’s premium networking and business directory.

Read more from our Press Room.

Related Articles:

Removing Vulnerability in Residential and Commercial Estate Management

By Citiq Prepaid 0 comment(s)

What Employers Need to Know About Hearsay Evidence

By Serr Synergy 0 comment(s)

Unpacking the BEE Management Tool

By BEE-Connex 0 comment(s)

IBA Group Opened a Digital Twin Laboratory

By IBA South Africa 0 comment(s)

Learning Through Experience

By Johannesburg Business School 0 comment(s)