FrEquently Asked Questions
How can training impact turnover cost?
Keeping well-trained employees pays off significantly for companies because the cost of employee turnover can be high. Costs include separation costs, such as exit interviews, administrative functions related to termination, severance pay and unemployment compensation. Replacement costs consist of attracting applicants, entrance interviews, testing, travel and moving expenses, pre-employment administrative expenses, medical exams and supplying employment information.
Studies show that the cost of replacing employees increases with the level of the employee. For example, the cost of replacing a mid-range manager is 20 percent of the $40,000 salary, or $8,000. The cost of replacing a top executive, however, can be as high as 213 percent of salary. So an executive earning $100,000 could cost as much as $213,000 to replace.
Source: https://smallbusiness.chron.com
Training and Employee Satisfaction
Job satisfaction generally increases and self-esteem improves when employees better understand the workings of the company. Training can also enhance morale on the job and loyalty to the company. Workers who believe their company offers excellent training opportunities are generally less likely to leave their companies within a year of training than employees with poor training opportunities.
Source: https://smallbusiness.chron.co
Benefits of Customer Training Programs
Offering customer service training to your employees doesn’t just add-value for the customer; it can drive sales and give you a strong competitive advantage. In today’s post we will examine four benefits that customer service training programs yield for the organization, employees and customers.
1) Higher Employee Motivation & Engagement: Providing training on customer service allows employees to greater understand the impact their role has on the organization. A company that invests in training shows their employees that they care about continual development and progress. In turn this makes employees more engaged in the company and therefore more motivated. Employees then become more efficient and better equipped to deal effectively with customers. You can increase engagement a step further by having employees involved in the development of the training program by asking for their feedback (training needs assessment).
2) Improved Customer Service Skills: Through customer service training, employees improve their skills and/or acquire new ones. Specific customer service training programs focus on improving communication, listening, problem-solving and organizational skills. Training employees on the same set of competencies gives them a standard process to deal with customers and creates a sense of team spirit. The increased motivation and engagement coupled with the new skills creates improved customer service in the company.
3) Increased Customer Satisfaction: Improving the quality of your customer service through training leads to an increase in customer satisfaction, retention and loyalty. Through effective training, customer service representatives increase their ability to resolve issues and decrease the number of return calls. Often, trained employees are able to address the concern at the first point of contact, which greatly increases customer satisfaction. The improved manner that employees interact with customers leads to the consumer feeling appreciated and respected. This appreciation is critical to the company’s success as it is the basis for repeated patronage and customer loyalty.
4) Rise in Profit: What quality customer service training allows the company to achieve is higher customer retention, the acquisition of new customers, reduced employee turnover and increased sales. The training has a great impact on employee motivation and morale, which leads to increased productivity. Through the customer service training employees come together to achieve a common goal, which is to satisfy the customer. Think of it as an equation: improved customer service + increased customer satisfaction + increased customer loyalty = an increase in profit.
Source: https://explorance.com/blog/4-key-benefits-customer-service-training-programs/