Is The Value of Training Really as Much as a Raise?

Value of Training

Is The Value of Training Really as Much as a Raise?
Could it be true?  Is the value of training as much as a raise?  According to a recent study of nearly 5,000 workers in Spain by Santiago Budría of the University of Madeira, company-provided training has the same effect on job satisfaction as a 17.7% net wage increase.  That surprised us.

What Younger Workers Want
While it may sound surprising and pay levels certainly need to be competitive enough to not cause disengagement, more and more studies are finding that younger workers expect their employers to invest heavily in their learning and development to:

  • Improve their knowledge and skills
  • Help them to advance their careers

A Personal Example
Maybe it is not so surprising.  When I joined Andersen Consulting (now Accenture) 25+ years ago, I purposely took a lower salary than many of my peers because Andersen was a great place to start my career. The investment they made in me in terms of opportunities and learning and development felt unmatched.

What if Training Did More than Just Boosting Job Satisfaction?
If training, by itself, can boost job satisfaction as much as a 17.7% wage increase, just think about the additional impact you could get from the transfer of training to actual on-the-job behavior change and performance improvement.

How to Ensure Your Employees Believe You Are Investing in Their Future
Paying people more does not necessarily correlate to higher levels of employee engagement or improved performance. But well-designed training that transfers key skills and knowledge back to the job certainly does.  If you think your employees may value training as much as a raise, ensure your employees believe you are investing in their future by:

  • Cross-training them to do other jobs to get a fuller picture of how the business works and thrives.
  • Training them to do their own job proficiently.
  • Providing clear opportunities to learn new skills that will help them to succeed wherever they work.
  • Creating meaningful jobs with chances to learn and grow.

The Bottom Line
While it sounds a bit crazy to some that the value of training is greater than a raise, many employees would prefer opportunities for growth, learning and advancement over better compensation.  Before you change your compensation plans to engage and retain top talent, ensure you are providing clear opportunities for people to learn and grow.

To learn more about the transfer of training to improve performance and employee engagement, download 3 Steps to Building a Smarter Training Initiative – One that Gets Business Results

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Thoratec

I have worked with LSA Global at previous companies and welcomed the opportunity to bring them in to support my new organization. We worked closely with LSA to design a solution for our Client Partner Teams and Management Training on both coasts. LSA designed a customized solution for our business and organizational culture. LSA is a quality organization, one that I’d recommend to any company looking for a first class training and consulting partner that makes an impact.

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LSA custom designed a Management Development program that is absolutely “on target” for our technical managers. Their facilitator has done a superb job delivering the material in a way that is fast paced, highly interactive, and fun. She presents practical solutions to the people situations that our managers face every day. I regard LSA as an excellent partner that understands our business needs and a virtual member of our HR department.

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Each program is preceded by an assessment of the participants. The course is then designed to fit the specific parameters and needs of the group. The highly interactive delivery is provided by recognized experts in their fields. On the spot coaching is provided during the program and each participant receives individual follow-up after the course. Courses can be delivered in-person or virtually. Given the nature of Cisco’s business and the way we operate, these remote workshops are a must for anyone who joins our company. Their work is eye opening. Great content and fantastic delivery.

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We partnered with LSA to pilot a customized behavioral interviewing program to help ensure that we continue to hire the best and brightest as we continue to rapidly scale. LSA’s ability to understand our business and our unique culture combined with their desire to ensure that the best practices framework truly fits our performance environment and is highly adopted by our people is a real blessing. Most other firms want to just ‘give you training.’ Not LSA, they are focused on helping me hit our hiring forecasts and attract A players.

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AKQA

I am very impressed with the quality of work and talent. LSA did a great job of listening to my needs and providing the exact management training program expertise I needed to get the job done.

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Roche

LSA’s consultant designed and delivered a half-day team building solution for our recent conference. It included careful customization to integrate the design with our new mission and values. Everyone had fun and identified key issues with our teamwork. Altogether a great program!

Bob Ward
Director of HR

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