Employee Training Made Easy and Affordable for SMEs in the Philippines!

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Employee training is one of the most important investments a business can make in its future. It helps to increase employee loyalty, motivation, and efficiency and a key factor in driving business success. In this article, we will explore why this is so important for businesses of all sizes, the benefits it offers small businesses, common pitfalls that SMEs face when developing their own training programs, as well as examples of successful employee training and development programs in the Philippines. We hope that by reading this article you will gain insight into how you can improve your own company's performance through effective employee training initiatives.

What is Employee Training?

Employee training refers to the method of teaching new and existing employees the skills needed to perform their job effectively. It is an essential part of any successful business, as it helps to increase employee loyalty, productivity, and efficiency. The primary goal of this is to help employees acquire the necessary knowledge, skills, and abilities they need to fully contribute not only on their own personal and career growth but also to the success of the company.

By providing regular trainings, companies or organizations can reap several benefits, such as increased on employee retention, improved morale within the organization, and reduced turnover rates. Additionally, this program saves time and money that would otherwise be used on hiring and training new employees. Furthermore, a well-trained employee tends to have a better understanding of their roles which can lead significantly into higher quality work output from them.

In the Philippines there are many examples of successful training programs that have been implemented by businesses over the years. These include some of the well-known company such as SM Investments Corporation (SMIC), which provides its staff with comprehensive training courses for a wide range of topics including customer service excellence and leadership development.

The Benefits of Employee Training for Small Businesses

As we have established, employee training and development is an invaluable asset for any small business, with a multitude of benefits that directly impact the company's success. Well-trained employees play a pivotal role in increasing sales and profits, boosting morale, reducing turnover rates, raising employee performance, and improving overall productivity levels. By investing in employee learning, small businesses can ensure their sustained growth and competitiveness in today's dynamic market landscape.

Sales and Revenue Generation - Employee training positively influences sales and revenue generation. A well-trained sales team can provide exceptional customer experiences, resulting in increased customer satisfaction and loyalty. Moreover, training equips employees with effective sales techniques and product knowledge, enabling them to upsell and cross-sell, maximizing each customer's purchase potential and driving higher sales revenue.

Employee Loyalty and Motivation - Secondly, training programs foster employee loyalty and motivation. When employees receive valuable training, they feel valued and empowered, which increases their dedication to the company. This sense of loyalty encourages them to stay longer with the company, reducing turnover rates and the associated costs of hiring and training new employees.

Efficient and Customer Service - Thirdly, trained employees are more efficient in their roles, leading to cost savings and increased profits. With a comprehensive understanding of their job responsibilities, employees can work faster and more accurately, saving valuable time and resources. Additionally, their ability to handle difficult situations skillfully allow employees to reduce customer complaints and enhance customer service ratings, further contributing to customer retention and revenue growth.

Beyond the direct impact on sales and efficiency, investing in employee training and different training method helps small businesses promote a culture of continuous learning and development. A workforce that feels capable and up-to-date with industry trends and regulations becomes more adaptable to changing market demands. Collaboration among team members is fostered through shared learning experiences, leading to increased synergy and efficiency in completing tasks and solving problems.

Why SMEs Fail To Implement Training and Development Program for Their Employees Well

Small and medium enterprises (SMEs) often fail to provide adequate training for their employees, owing to various constraints that they face.

1.) Budget Constraints
The most common of these are lack of resources and budget constraints. SMEs may not have the necessary resources or budget to invest in a comprehensive training program for their employees. This can lead to inadequate learning opportunities which can in turn result in inefficient or sub-par performance from employees.

2.) Lack of Experienced Resource Person
In addition, SMEs may lack the knowledge about the type of training to employ or may not have personnel who can provide appropriate guidance on the topic. Without the right guidance, it is difficult for SMEs to design a comprehensive training solutions that would allow employees to excel and induce career development opportunities as well to the employee.

3.) Operational Downtime
Another factor that prevents SMEs from providing employees quality development opportunities is operational downtime resulting in lost sales when training employees. Training programs require time away from work which can mean lower productivity levels or even lost sales opportunities during that period of time. This means SMEs must find suitable training types to provide effective training while ensuring minimal disruption to their operations. Some examples of trainings that could be conducted by SMEs are workplace training and online training, these training sessions would ensure minimal disruptions to the operation of the organizations while giving good training.

4.) Finding Common Schedule
Another challenge faced by SMEs is finding a common schedule for many employees especially when they are dispersed across different branches or locations. It requires careful planning and coordination between all departments and branches in order to ensure everyone gets adequate training without any significant disruption caused by conflicting schedules or long distances travelled by certain individuals to attend classes at other branches/locations. This is especially true to some type of employee training that requires the presence of the employee such as corporate training, classroom training, and in-person training,

5.) Failure to Evaluate Employee Training Program Effectiveness
Finally, one major issue faced by many SMEs is that they fail to evaluate the effectiveness of their program and training process after it has been implemented. Without proper evaluation, it is impossible for them to know if their investment in employee learning and development has paid off or if changes need to be made in the training plan in order for the program to be more successful going forward.

All of these factors can lead to inadequate employee training within an organization which can have serious implications on its growth and success prospects over time. It is therefore important for SMEs to take all necessary steps towards overcoming these challenges so that they can ensure their employees have the necessary skills and knowledge required for success within their organization.

Impact of Untrained Employees on Business

The consequences of having an untrained workforce can be severe for businesses. Without proper training, employees may lack the skills and knowledge needed to perform their job effectively, leading to decreased customer satisfaction, costly mistakes, legal issues and discord amongst staff. This can have a detrimental impact on sales as well as team morale and productivity. Let’s take an in-depth look on each:

1.) Unmaximized Potential on Sales and Low Employee Morale
The negative consequences of an untrained workforce can directly affect a company's sales performance. Dissatisfied customers, costly mistakes, and legal issues can all lead to a loss of business opportunities and decreased revenue. On the other hand, a trained and competent workforce can improve customer satisfaction, leading to repeat business and positive word-of-mouth referrals. Furthermore, the morale of employees can suffer when they feel ill-equipped to perform their job roles. This lack of confidence can demotivate individuals and reduce overall team morale. Conversely, when employees receive proper training, they feel valued and empowered, which boosts their motivation to excel in their roles and contribute to the success of the organization.

2.) Loss of Profits Due to Costly Mistake
The absence of proper training can result in costly mistakes. In industries where precision and accuracy are crucial, such as manufacturing or healthcare, errors caused by untrained employees can lead to financial losses, waste of resources, and compromised product or service quality. These mistakes may also expose the business to legal issues, compliance violations, or even lawsuits, further impacting its reputation and financial stability.

3.) High Employee Turnover Rate
An untrained workforce often experiences a higher turnover rate compared to organizations that prioritize employee training and development. The lack of proper training can make employee feel dissatisfied, as they may feel unsupported and unprepared in their roles. As a result, employees are more likely to seek opportunities elsewhere due to lack of career development opportunities, leading to a revolving door of talent within the company.

4.) Decrease in Customer Satisfaction and Brand Reputation
Employees build relationships with your customer. When employees lack the necessary skills and knowledge to handle customer inquiries or resolve issues efficiently, it can lead to frustrated customers and a tarnished brand reputation. Studies have shown that a dissatisfied customer is more likely to share their negative experiences with others, which can have a ripple effect on a company's customer base.

The consequences of having an untrained workforce can be severe, impacting customer satisfaction, sales, team morale, and overall productivity. Companies must recognize the importance of investing in employee training programs to equip their personnel with the necessary competencies for success. Regular evaluations ensure that training efforts align with business objectives and lead to positive outcomes for both employees and the organization. By prioritizing employees to learn, businesses can secure a competitive advantage and foster a culture of continuous improvement and growth.

Examples of Successful and Effective Employee Training and Development Program in the Philippines

Employee training is essential for any business that wants to succeed, this belief is shared by many successful companies in the Philippines. These companies recognize the investing in employee training and development is crucial for achieving their goals and maintaining they competitive edge and have established comprehensive training programs to enhance the skills and knowledge of their employees.

SM Supermalls

SM Supermalls has been able to achieve their business targets, retain 90% of their high potential talents, deliver 94% in training coverage, and achieve 100% in employee engagement reach.

At the core of SM Supermalls' success lies its unwavering commitment to its employees' growth and wellbeing. Through purposeful initiatives and innovative programs, SM Supermalls has set a benchmark for employee-centric practices. Their dedication to fostering a culture of learning, engagement, and wellness has earned them international recognition. Recently, the company was bestowed with three prestigious awards, including the Gold Award for Excellence in Learning and Development, the Silver Award for Excellence in Employee Engagement, and the Bronze Stevie Award for Employer of the Year (Retail).

SM Supermalls' employee-focused efforts are anchored on the pillars of purpose, passion, and performance. They prioritize communication, learning, and engagement, enabling employees to contribute meaningfully to the organization. By offering personalized training, coaching and mentoring sessions and hosting the SM Masterclass, employees are trained, and the company ensures its workforce stays ahead in a rapidly evolving industry. Additionally, they prioritize employees' mental health by providing online counseling services and promote overall wellbeing through wellness learning series. These initiatives have not only helped SM Supermalls achieve its business targets but also led to a remarkable 100% employee engagement reach.

The recognition received by SM Supermalls from global awarding institutions is a testament to their commitment to employee development. The company's Vice President for Human Resources, Ms. Cheryll Ruth L. Agsaoay, acknowledges the honor and remains dedicated to continuous innovation in employee programs to meet the ever-changing needs of their employees, business, and communities. As they continue to inspire other organizations with their employee-centric approach, SM Supermalls sets a shining example of how prioritizing employee growth and wellbeing can drive success and foster a thriving workplace culture.

Source: https://business.inquirer.net/366054/sm-supermalls-wins-international-accolades-for-its-employee-programs

Metrobank

LinkedIn's acknowledgment of Metrobank's employee-centric approach emphasizes the direct effect of the training programs on the bank's success. These training initiatives played a crucial role in maintaining business stability during the constantly changing work environment of the pandemic.

In the face of unprecedented challenges posed by the COVID-19 pandemic, Metropolitan Bank & Trust Co. (Metrobank) has emerged as a beacon of resilience and success in the banking and finance industry. Central to this achievement is Metrobank's unwavering commitment to training and development that answers employees need. Recognizing the importance of an empowered and skilled workforce, the bank invested in comprehensive training initiatives to help employees learn, that not only ensured business continuity during the pandemic but also positioned Metrobank as the best banking employer in the country, as acknowledged by LinkedIn's 2022 Top Companies List.

Amid the pandemic-induced upheaval, Metrobank took proactive steps to equip its over 14,000 employees with the tools and knowledge essential for their productivity and well-being. The bank developed robust employee wellness programs and embraced remote work policies to adapt to the changing landscape. However, it was the emphasis on employee training that proved to be a game-changer for Metrobank. Through tailored training programs and training opportunities, Metrobank fostered a culture of continuous learning, allowing its employees to upskill and adapt to new challenges effectively.

The impact of Metrobank's employee training initiatives was two-fold. First, it ensured business continuity and stability during times of uncertainty. Well-trained employees were equipped to tackle emerging challenges, enabling the bank to adapt quickly to changing circumstances. Second, investing in employee training and career development boosted morale and fostered a sense of loyalty and dedication among Metrobankers. This employee-centric approach not only attracted top talent but also played a vital role in retaining skilled professionals, enhancing the bank's reputation as an employer of choice in the industry.

Source: https://mb.com.ph/2022/8/23/metrobank-ranked-by-linkedin-as-ph-top-banking-employer-for-2022

SM Supermalls and Metrobank demonstrate how investing in employee training can provide businesses with significant long-term benefits over time if done properly. They also show how important it is for organizations to conduct regular evaluations of their existing programs so that future investments into employee training will be more effective at meeting desired outcomes while still being cost-efficient at the same time.

Takeaway and Conclusion on the Importance of Training

Employee training is a critical component of business success, and it plays a significant role in shaping the performance and growth of an organization. By investing in employee training, businesses can achieve numerous benefits, including increased employee loyalty, employee motivation, and business efficiency. Well-trained employees are more likely to contribute positively to the company's success, leading to improved sales, reduced turnover rates, and enhanced customer satisfaction.

For small businesses, employee training is especially important as it directly impacts their competitiveness in the market. Despite the challenges faced by SMEs, such as budget constraints and operational downtime, prioritizing employee training can yield long-term benefits that outweigh the initial investment.

The consequences of neglecting employee training can be severe for businesses. Untrained employees may lead to decreased customer satisfaction, costly mistakes, and higher turnover rates for essential employee, all of which can negatively impact sales, team morale, and overall productivity. Recognizing the importance of investing in skills training is crucial for sustaining growth and maintaining a positive brand reputation.

The success stories of companies like SM Supermalls and Metrobank in the Philippines demonstrate the tangible benefits of prioritizing effective employee training. Their employee-centric approaches have led to increased engagement, loyalty, and overall success for the organizations. Regular evaluations of training programs allow businesses to continuously improve their initiatives and ensure they align with business objectives.

Employee training is not just an expense but an investment in the future of a business. Companies that prioritize employee development, create a positive work environment, foster employee loyalty, and equip their workforce with the skills needed to adapt to changing market demands. By embracing a culture of continuous learning and improvement, businesses can secure a competitive advantage and pave the way for long-term success.