Are you torn about investing in management training? On the one hand, you want skilful and productive people working in the business. But on the other, you ask what the ROI of management training actually is.
Here are my thoughts.
Common Objections to Management Training that I Hear
When businesses are reluctant to invest in management training there are a few objections I often hear. The obvious one is ‘we just don’t have the budget right now.’
Another common one is ‘I don’t want to train someone up just so they can up and leave.’
Both are narrow ways of thinking.
If you don’t develop managers, they might just get fed up and end up leaving anyway and you’ll have lost an asset. Then there’s the money issue.
Yes, skills learned in management training can take some time to filter through and affect the bottom line. But my question is, can you afford not to invest in it?
What is the potential ROI of management training versus the cost of not developing your people and equipping them for the job?
Starbucks: A Case Study in the Benefits of Training Employees
Starbucks offers a number of part-time and full-time employees the chance to get a fully funded online degree. The only requirement is that an employee has worked for the company for 3 months. There is no expectation that employees will continue to work for the company once they’ve graduated.
You may be thinking that sounds like a huge risk, and it is. But here’s the thing. Offering employees the chance to develop makes Starbucks a company that attracts and retains good people. However long the employees stay, I guarantee that they will want to do good work and go the extra mile. And I wonder how many of them will end up staying with the company and going into management.
What Can Management Training Do?
If you invest in management training, how do you know it’s worked? What sort of ROI can you expect? My advice is to walk around the workplace, talk to people, and simply observe the changes and improvements. After managers have had good quality training you should notice things like:
Positive changes in Managers
✅ The ability to be more agile and confident in managing change;
✅ Improved confidence to take the business and team forward;
✅ A willingness to apply their new-found skills to change things for the better;
✅ The ability to build strong relationships with team members and demonstrate empathy when dealing with them;
✅ A desire to support team members to grow and develop;
✅ The ability to carry out more effective performance appraisals that help individuals and the business thrive;
✅ The confidence to deal with conflict and difficult conversations as soon as they arise.
Positive Changes in the Team
Positive changes will be seen in teams led by a manager who’s had great management training.
These might include:
☑️ A harmonious atmosphere in the workplace;
☑️ High levels of engagement and employee satisfaction;
☑️ Great communication and collaboration in the team;
Positive Changes In The Overall Business
✅ An increase in customer satisfaction;
✅ Less absenteeism and better staff retention.
✅ An increase in business performance (The Chartered Management Institute cites a 23% increase)
✅ The mental health of your employees will be more robust
The Real ROI of Management Training
So while it can sometimes take a little while for the ROI of management training to become apparent in the bottom line, it’s so worth it.
Having happier and more engaged teams will ultimately cut recruitment costs because employees who are happy want to stay.
Happier teams are also more productive teams and this can only be good for the business. Great teams start with the manager. Not just those at the very top of the tree, but the middle managers who are so often the backbone of business operations. That’s why management training for managers at all levels should always be on your list of things to invest in.
Looking To Invest In Management Training That Will REALLY Make A Difference?
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I’ve spent over 33 years leading and managing teams, and when you sign up for this membership, you’ll get invaluable information and knowledge, as well as the benefit of my experience.
If you want to develop your management skills and get on the fast track to team success, you can find out more about joining my great value membership and the amazing benefits that come with it here
Want to understand more about the 3 key benefits of training managers in your business, then read the blog here.
