The Importance of Employee Development
Overview
The workforce is a company’s most valuable asset. A company has a higher probability of succeeding if its workers are inspired to perform to the best of their abilities because they will translate that enthusiasm into better work results. Employee training and development is a crucial element that promotes engagement, progression, and employee satisfaction. Strengthening the skills of employees will not only increase productivity and morale, but also equip them for more responsibilities within the organisation. Investing in employee’s skills will also increase opportunities for the team to grow professionally.
The below are some reasons showcasing the importance of investing in employee development:
- Being prepared for the Future
Investing in staff development entails more than just providing technical training to employees. Putting an emphasis on skills such as effective communication, adaptability, and others helps to prepare staff for whatever changes may occur in the foreseeable future.
- Improved Motivation of the Employees
Training employees can increase their sense of self-worth, encourage engagement, and reaffirm their values.
- Enhanced Retention Levels
Maintaining employee satisfaction through personal and professional development reduces turnover and, consequently, costs. Replacing an employee is far more expensive than investing in ongoing training.
- More Opportunities for Employees
Training and developing the employees goes beyond merely keeping workers at the company; it also paves the way for their career progression.
- Increased Productivity and Engagement
Employee engagement and productivity increases when the employees feel engaged and confident in their work, which improves the efficiency of the company.
Investing in training can be costly and usually companies registered in Malta may be eligible for funding to part-finance their training programs. The current main relevant funding scheme is the ‘Investing in Skills Scheme’ which was launched by Jobsplus to promote the training of persons actively participating in the Maltese Labour Market, with the aim of increasing productivity and enhancing adaptability. The Scheme was reintroduced by Jobsplus and is currently open for training activities held till 30 June 2027 with applications submitted by 31 December 2026.
Aid shall not be granted for training carried out to adhere to National Mandatory Standards on training. Furthermore, activities such as information sessions, meetings, conferences, seminars and teambuilding events will not be considered eligible. The training can be delivered through physical classroom-based sessions, live or recorded online training, as well as distance learning.
According to the revised guidelines, the Training Cost Subsidy for both accredited and non-accredited training increased from €28.25 per hour to €29.70 per hour. Additionally, the Wage Cost Subsidy increased to €9.25 per hour, from the previous rate of €5.55 per hour.
Feel free to reach out should you wish to obtain more information on the above, any other relevant funding schemes or training programs.
The information provided in this article is accurate as of the date of last update. Please note that the scheme/s discussed may be subject to changes or expiration within a year. Readers are encouraged to verify the status of the scheme with the relevant authorities or official websites for the most up-to-date information.
Last update: 7th October 2024
Rosann Axiaq
Financial Advisory Leader
