We have all heard the expression “employees are your biggest asset”.  These “assets” are the basis of a company’s success, and as such, business gurus advise companies to “treat them well” and “groom them for success”. For this reason, many employers today are investing substantial resources in employee benefit packages and employee-training programs.
Employee training programs are a key investment for increasing productivity. Essentially, employees are a business investment just like computers.  Just as you would invest in software and upgrades to increase productivity, investing in employee training will do the same. It will empower your staff with the knowledge to make significant contributions to the overall profitability of your company. In today’s competitive marketplace, workers must be equipped with more than just the technical know-how.  They must also have the ability to think creatively, implement plans strategically and interact effectively with others. Without proper training, you run the risk of employing a workforce that is ill-equipped to handle these ever-changing demands of the industry.
While skimping on training might seem like a way of cutting costs in the hope of improving your bottom line, how much are you losing in lost productivity, paid in wages to underachieving staff? To determine if the training cost is justified, you need to consider the Return on Investment (ROI).
ROI is a mathematical comparison of benefits to cost expressed as a percentage of the original investment, according to Ben Worthen of CIO Magazine. The ROI formula is expressed as [ROI=(savings/costs)x100]. In simpler terms, it is a way of determining if the benefits received from training justified the investment cost.
Training ROI analysis helps determine whether or not training programs add productivity to an organization. To complete an effective ROI on training programs, identify the critical areas in your property management operations that need improvement, establish goals for the training, then analyze the results.
Let’s consider, for example, that ABC Company has  two similar properties requiring improvement in performance. It hopes to improve soft skills such as listening, problem solving, and managing customer complaints. ABC Company decides to send property managers and frontline staff for training on customer service skills, effective selling, and strategic planning at a cost of $600 per person.  The goal is to have fewer vacancies, fewer complaints, less maintenance, and less staff turnover.
In order to complete an effective ROI analysis, ABC Company sends the six employees from Property A, but holds off on sending the staff from Property B until it has assessed the impact of the training. The success of the training program is evaluated in the 30 days following the seminar by tracking: a) the number of customer complaints received, b) the number of problems solved at the frontline staff level, and c) the completion time on projects.
The Results: Property A spent $3600.00 on training for six employees. The Property B staff received no training, therefore incurred no additional expense. During the evaluation period, Property A received fewer customer complaints, resolved problems quicker (usually within one phone call), and maintenance staff was called ten hours less for the month.  The increased productivity produced a savings amount of $7250.00. In the same time period, Property B’s numbers remained flat, showing that the training had a measurable impact. Did the training produce a positive ROI? To calculate, the measurable improvement is divided by the cost and multiplied by 100. ABC Company’s training ROI is ($7250/$3600)x100=201%.  This is a 201% return on their investment for employee training — well worth the investment.
Ultimately, you need to ask if you can afford NOT to invest in training.  Can you afford the lost productivity of an underachieving staff? Your company’s investment in training can be one of your biggest competitive advantages. It will result in a more focused, results-driven organization that will increase productivity and property performance.