Is Training Really A Cost?

The world is changing fast and, to keep up, people must be trained in new concepts, techniques, technologies, systems and processes, often paid for by their employer.

Companies are sometimes reluctant to spend money training their people saying ‘What happens if we train them and they leave?’, the retort to which is, ‘What happens if we don’t train them and they stay?’

Richard Branson put it well when he said, ‘Train them well enough so they CAN leave; treat them well enough so they don’t want to.’ Jobs with at least some of the businesses with the Virgin brand around the world (such as Virgin Trains in the UK, sadly no more due to changes in the rail industry there) are or were highly sought after, partly due to the excellent training of the employees.

That shows up in the quality-of-service customers receive (resulting in higher sales) and improved efficiency (resulting in lower costs) and therefore overall higher profitability.

So, just as employees are regarded as costs rather than as assets in financial statements, training is really an investment, not a cost. It’s an investment in the most important asset that every business says it has.

If not read properly, financial statements can mislead so it’s important to understand them to ensure you make the right decisions – for which you might need some training. 😊

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