Providing training to employees helps keep their skills sharp and can lead to improved productivity. It also shows a commitment to employee growth and development that may pay additional dividends, including potentially having a positive effect on employee retention.
These benefits are more likely to be experienced at ESOP companies, which consistently outperform their conventionally-owned counterparts at offering employee training. In fact, ESOP companies are 1.4 times more likely to offer such training, according to newly updated research funded by the Employee Ownership Foundation. (See the graph below.)
ESOP companies also are more likely to provide training that leads to financial literacy. For many companies, this is a natural outgrowth of their legal requirement to provide annual valuations of company stock to their employee owners. At many ESOP companies, annual valuations have spawned large-scale meetings that include financial information about the company and its past, present, and future.
This kind of information sharing helps employee owners become better at managing both company finances, and personal finances too. (We’ll delve into that topic in our next blog post.)
These kinds of investments in employee training just make sense. When employees are given the chance to add new skills, or improve the skills they already possess, it makes greater efficiency and productivity possible.
That in turn leads to greater rewards in which everyone can share.