Small businesses need a select group of high-quality individuals to succeed. However, while the recruitment process should certainly be thorough, the ideal way to avoid failure and unlock long-term success is to continually aim for better internal processes.
Doing that is a case of investing in staff in the here and now. Despite this being a no-brainer for some, budget restrictions can quickly get in the way, leaving the growth paths for a number of employees relatively stagnant.
So, why should small business owners prioritise staff training? Here are three key reasons:
1. Better people add value
Deloitte's Diana O'Brien told Forbes that her company is putting a huge emphasis on upskilling their staff, as having more highly trained people can ultimately lead to increased value for the customer. Over the course of several years, these gains can add up and equal a huge amount of profitability further down the line.
2. Retention beats turnover
If your small business isn't looking to better the skills of its staff, chances are they will underperform. Consequently – through no fault of their own in some cases – employees simply may not be up to the task and have to be let go.
The fallout of this process can be immense. Research collated by Entrepreneur contributor Suzanne Lucas explained that the costs of replacing a single frontline employee could be as much as 150 per cent of their salary. That kind of financial hit could soon affect the company's bottom line, leaving you to have some serious conversations with your small business accountant.
3. Delegation frees up the company
Ultimately, a well-trained employee can gradually take on more duties, and remove some of the pressure on the business' management and owner. Consequently, if you feel like you're constantly putting out fires around your small enterprise, upskilling employees could be a critical step in boosting wider productivity.