Employee training is an essential aspect of any business. Investing in employee training programs foster a long-term growth for employers as well as employees. According to a survey, 40% of employees receiving poor job training quit their positions in the first year, while 68% workers cite training and development as the most important workplace policy.
For the firm to stay ahead of the curve, the employees have to be up-to-date. Evolution of disruptive technology coupled with a tectonic shift in financial policies by respective governments (e.g. the GST introduction) makes it imperative for Chartered Accountants (CAs) to invest in employee training. Such investments bring immense benefits in the long run. Let’s see some of them.
1. Enhance Profit and Productivity
'An investment in knowledge always pays the best interest' - Benjamin Franklin
According to ATD (Association for Talent Development), companies offering comprehensive training programs enjoy 218% higher income per employee. These firms also enjoy a 24% higher profit margin than those spending less on training.
Training employees on technologies such as big data and analytics aid CAs to get valuable insights on client data and improve audit quality.
This directly impacts a clients’ business, as they can make data-driven and intelligent decisions, which ultimately gives you repeat business and boosts your profits.
2. Retain Employees and Reduce Employee Turnover Cost
Losing productive employees is a deterrent for any business. To thrive in a competitive landscape, it's vital to retain talented employees. According to a study, 69% of employees are open to better opportunities and failing to provide those opportunities can hurt a CA's practice.
The cost of employee turnover can financially pinch a CA firm According to a case study conducted in the U.S, the average costs to replace an employee are:
- 16% of annual salary for those earning under USD 30,000 a year
- 20% of annual salary for those earning between USD 30,000 to 50,000 a year
- 213% of annual salary for pretty high posts such as a CEO
High employee attrition has other repercussions too. It leads to:
- Low work productivity
- Deteriorating customer service
- Unfulfilled daily functions
- Lower knowledge base
Such repercussions can be dealt with a loan for CAs that offer funds up to Rs. 55 lakh and money in bank in 48 hours*.
3. Foster Knowledge Sharing and Nature a Culture of Learning
Knowledge sharing is one of the fundamental mantras of success. In the financial world, it helps CAs to remain competitive. Employee training is a vital cog in the wheel of knowledge sharing as it opens up new avenues of thought and encourages peer-to-peer learning.
'Relinquish the need to control employees' learning and do not overly structure what an employee needs to learn. I'm not advocating the abolition of formal or structured learning, but I think the role of the learning and development function more and more needs to enable employees to find knowledge, and for employees themselves to provide the knowledge that they need to perform their jobs and to grow to their aspired level.' - Kee Meng Yeo, VP Global Talent Development at Amway.
4. Promote Job Satisfaction
A survey conducted by the Society for Human Resource Management in 2015 found 35% of employees pointing towards company-paid general training as one of the contributors to job satisfaction. Just like any other business, the perks and benefits of job satisfaction are immense for a CA.
Satisfied employees are usually more productive and a lot less likely to leave the firm. A high employee turnover ratio disrupts operations as continuous replacement is a costly affair, as highlighted in #2.
5. Have A Competitive Edge In The Market
Trained employees equip CA firms differentiate their services as their employees have domain expertise (accountancy) clubbed with the knowledge of technology, thereby helping the firm to reap dividends in the future.
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