Developing staff can add costs to a business and, as a result, is often overlooked when financial times get tough – but there are a variety of benefits that continuing professional development (CPD) can bring to small businesses and letting it slip is usually a short-sighted strategy.
Increased employee motivation and staff retention
Encouraging employees to pursue CPD opportunities makes them feel supported in the workplace and increases job satisfaction. It also makes them more likely to invest effort into progressing their careers within the business.
Supporting CPD for employees, ultimately, leads to higher staff retention rates – and retaining staff has huge cost benefits for small business. Some UK studies estimate that high staff turnover, and associated recruitment and retraining, can cost a business £11,000 per person, based on the average UK salaries.
CPD is cost-effective for small businesses
Effective CPD does not necessarily require a huge financial investment – there are many, very effective, different forms of learning. While large multinationals may invest in expensive internal training programmes, CPD overall recognises the value of both structured learning – such as training courses, seminars, conferences, etc – and unstructured learning such as relevant books, articles, podcasts, online materials, and so on.
Small businesses that actively incorporate CPD into their culture can benefit from a blend of different learning options without incurring substantial costs – for example, reading a relevant industry article can sometimes be as beneficial as a structured training course.
It increases competitiveness and potential for business growth
CPD can help employees improve their productivity and efficiency. As employees learn new skills, they can work more efficiently and will be more productive. This can lead to innovation and helps both staff and the business as a whole stay aware of important industry trends and developments.
Small businesses that promote CPD for their employees are often seen as better employers. This builds reputation and can improve the quality of applications during recruitment. In addition, a highly skilled workforce increases credibility with potential customers and can lead to better business outcomes and a competitive edge in the market.
CPD can ensure staff compliance with legal and regulatory requirements
Some industries are subject to specific legal and regulatory requirements which can change regularly. Focusing on CPD can ensure staff remain compliant with current legislation thereby avoiding penalties and business disruption. Small businesses in the food and hospitality industry, for example, will often have to navigate changing rules around hygiene, allergens and health and safety. An ongoing commitment to CPD can ensure staff remain aware of, and competent in relation to, the current requirements in these areas.
It fills knowledge gaps in the workforce
CPD is an effective way of addressing knowledge gaps amongst staff. This can relate to technological advances or changes in the business environment – encouraging CPD will ensure employees are gaining the skills and knowledge to adapt to changing business needs.
It streamlines management processes
CPD can often be a focal point for management reviews and annual appraisals. Employees should align their CPD with organisational objectives, enabling both business and staff to actively cohere around the company strategy and mission.
CPD encourages flexible learning and a culture of learning
CPD emphasises, and encourages, employees to learn and develop skills with reference to their own schedules and at their own convenience, thereby minimising disruption to work. In addition, the principle and philosophy of CPD is lifelong learning so supporting CPD can help create a culture of learning within a business, which leads to the constant search for improvement, and translates into business growth and success.
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