Everybody fundamentally believes that employee training is good for business. Who would argue that point. One might say it improves employee satisfaction; another says it increases productivity; yet another argues it reduces turnover, on and on and on. Well how about this one? It prevents lawsuits!
Who says? Mr. Richard Ward, CEO of the Lloyd's of London insurance company says. In an article/interview published in the USA Today on September 15 (click to view article), Mr. Ward stated, "Staff education is absolutely key. A better understanding of the consequences of behavior lessens risk and improves the reputation of the business. Employees should be encouraged to raise concerns and share information."
I've always believed that one of the primary, but sometimes subtle and unmentioned reasons companies provide customer training is to mitigate risk. It is the risk associated with a customer not using a product properly; or getting injured, either physically or financially, from a product where the supplying company did not properly prepare the customer for its use. Or it's the risk of losing a customer where they choose not to buy a product or service again because of post cognitive dissonance. If customers are not well prepared to use the product, they won't buy again.
This risk translates into 'failure cost' - the cost to the supplier due to the failure of not delivering upon it's obligations or responsibilities.
Mr. Ward is very clear that if we don't train our employees properly, we stand the risk, or increased probability of being held accountable. So good leaders know that training is not only good for business because it potentially increases revenues, but because it helps to reduce unnecessary costs.
So why do YOU train employees and customers? Are you doing it for ALL the right reasons?
