Startups

5 Reasons Why Not Providing Employee Training Costs Your Startup Money

  • 4 min Read
  • June 17, 2019

Author

Escalon

Table of Contents

With unemployment rates at record lows, many large companies are recommitting chunks of their budgets to employee training.

Why? This is to increase retention rates and enable their companies to keep their best and brightest team members.

Yet, small businesses and startups may find themselves reluctant to provide employee training. Let’s look at five reasons why not providing employee training costs your startup money.

#1: A More Competitive Workforce



If you want to be competitive in your chosen category, provide your employees with ongoing training.

When you’re able to keep your staff informed and educated on the latest tips and techniques in their field, you have a more competitive startup.

Be strategic when creating your training programs so that all of your training programs work together to benefit your employees and your startup.

#2: Better Employee Retention



Employee development is the key to employee retention.

It is always easier to keep an employee than to hire a new one, and it’s cheaper, too. So, you want to do everything you can to keep your staff.

Your staff wants to see a clear career path, they want to feel challenged in their work,  and if they don’t have these things, they’re going to leave.

Make sure you’re providing plenty of opportunities for growth and even advancement to your employees. When you provide ongoing training, you’ll see less turnover and a higher retention rate.

#3: Higher Employee Engagement and Productivity



When you have more engaged employees, you’ll see productivity climb at rapid rates.

This is because when your employees are engaged, they better appreciate your startup and want to fulfill your mission so their overall productivity increases.

The cost of not providing training is a less effective workforce.

But, when you provide your team with the tools they need to succeed, they feel good getting up every morning for their job. They appreciate the personal growth opportunities and show it to you with higher productivity.

#4: Reduced Business Costs



Training programs can reduce your business costs, and not providing employee training can raise them.

When you provide ongoing training in the form of educational and developmental programs, you save money on hiring employees.

Many startups find that comprehensive training programs lower staff turnover. This means no job listings, interviewing, hiring, and on-boarding new team members which is an expensive undertaking – somewhere in the tens of thousands of dollars.

Today’s employees want training. They want to feel needed, and they want a purpose. Your additional training makes them feel appreciated, and in turn they’ll work harder for you.

#5: Happy Customers



We’ve already looked at how employee training creates a more engaged staff. When this happens, you’ll also notice happier customers.

Begin with your team. Create a wonderful company culture, nurture and train your employees, and you’ll notice they’ll have better relationships with your customers.

The best thing you can do for your customers is put your team first and treat your employees well. In turn, they’ll treat your customers well.

For startups looking to build customer relationships, engaged employees are the key.  They’ll help you create brand awareness all while building brand loyalty.

Final Thoughts



Henry Ford once said, “The only thing worse than training your employees and having them leave is not training them and having them stay.”

Ford’s statement pretty much sums up why providing employee training is vital to the success of your startup.

So, before you forgo training your employees, consider how much money it costs your startup if you don’t provide training. Then, consider your savings when you do provide it.

From lower employee turnover to happier customers, your startup always reaps the benefits of employee training.

Are you a new startup ready to succeed? Are you looking to get your new business off the ground and watch it rise to success? We are here for you. We can help answer your questions and guide you through the process. Outsource your HR duties, finances, payroll and more to us. Contact Escalon today to get started.

Image:  Husna Miskandar on Unsplash

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Accounting & Finance

Financial Planning for the Future, Setting Long-Term Business Goals

While small businesses must handle day-to-day tasks—like managing payroll or closing monthly books—long-term planning is the compass that keeps them...

Read More
People Management & HR

Benefits Administration, What Small Business Need to Know

Benefits administration can be a game-changer for small businesses aiming to attract and retain top talent. While salaries remain an...

Read More
Accounting & Finance

AAP vs. Cash Accounting: Which Method Is Best for Your Growing Business? 

Choosing the right accounting method can significantly impact how you track financial performance, manage taxes, and plan growth. Two common...

Read More
Accounting & Finance

Beyond Bootstrapping: Advanced Cash Flow Management for Scaling Companies 

Bootstrapping—financing growth through internal cash flow—is a hallmark of many successful startups. But as businesses mature past their initial stage,...

Read More
Technology & Security

Building a Scalable Tech Stack: How to Choose the Right Tools for Growth 

In today’s business landscape, technology is more than a convenience—it’s a strategic asset that can supercharge growth. But as you...

Read More
Accounting & Finance

How to Reduce Month-End Close Time Without Sacrificing Accuracy 

The month-end close can feel like a perpetual scramble—collecting invoices, reconciling accounts, fixing last-minute errors. A drawn-out close not only...

Read More
uncategorized

How to Reduce Overhead Costs Without Impacting Productivity 

Overhead costs—from utilities and rent to administrative staffing—can quietly swell until they erode profit margins and slow your ability to...

Read More
Accounting & Finance

How to Structure Your Finance Team as Your Business Scales

Growth triggers a tidal wave of financial complexity, multi-entity operations, new product lines, overseas expansion, or investor relations. If your...

Read More
Accounting & Finance

M&A Readiness: How to Prepare Your Financials for a Successful Acquisition or Sale 

Mergers and acquisitions (M&A) can dramatically alter a company’s trajectory—unlocking new markets, technologies, or customer bases. Yet, many deals stumble...

Read More