Employee training: it’s something we all know is important. But in 2025, it’s not enough to just throw some training materials together and hope for the best. To truly make an impact, you need a solid understanding of what employee training is, why it matters so much, and how to do it right.

After all, doing it right can garner big benefits, including increased employee engagement and higher retention rates. A recent study by LinkedIn found that 94% of employees would stay at a company longer if it invested in their learning and development. That’s a statistic you can’t ignore (well, you can, but you probably shouldn’t).

Here, we’ll break down the ins and outs of employee training, exploring its purpose, types, and benefits. We’ll also take a look at how technology is transforming the way we train employees and how you can leverage it to build a happy, thriving workforce.

So what even is employee training?

Employee training is the process of equipping employees with the knowledge, skills, and behaviors necessary to excel in their roles and contribute positively to organizational success.

Simply put, it’s an investment in your people that enables them to grow, adapt, and perform at their absolute best. The most effective employee training programs go way beyond simply teaching technical skills. They also focus on developing essential soft skills—like communication, problem-solving, and teamwork. Basically, all the critical elements for success in today’s collaborative work environment.

In fact, a joint study from Boston College, Harvard University, and the University of Michigan found that soft skills training boosts productivity and retention by 12%. Additionally, it delivers a 250% return on investment based on higher productivity and retention.

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The purpose of employee training programs

Perhaps you’re wondering, “Why bother with employee training in the first place?”

But there are a variety of reasons why an organization would consider implementing strategic training programs. Here’s the lowdown:

Upskilling and reskilling employees

Remember that time you needed a team of Python developers, but everyone was still coding in Java? The World Economic Forum estimates that over half of all employees will need significant reskilling and upskilling, and closing the global skills gap could boost global GDP by $6.5 trillion by 2030. Investing in your employees’ skill development ensures they’re ready to tackle any challenge that comes their way.

Improving employee performance

Think of it like this: a well-trained employee is like a finely tuned instrument. Hitting all the right notes and producing beautiful music (aka, incredible results!). According to a study by Gallup, engaged employees are 17% more productive than their disengaged counterparts, and training plays a key role in boosting that engagement.

Meeting compliance requirements

Just imagine the chaos if your healthcare staff weren’t trained on the latest HIPAA regulations or your construction crew didn’t know the safety protocols for operating heavy machinery. Yikes! Compliance training is about more than following the rules; it’s about protecting your people and your business.

Increasing employee retention

Nobody wants to feel stuck in a dead-end job. By giving your employees opportunities for growth and development, you show them that you care about their future. And wouldn’t you know it? They’re more likely to stick around. A report by Deloitte found that organizations with a strong learning culture have up to 50% higher employee retention rates.

Ultimately, the purpose of employee training is to support business growth and success by building a workforce that’s skilled, engaged, and adaptable.

What is employee training

The types of employee training programs

Surprise: employee training is not a one-size-fits-all kind of deal. There’s a whole buffet of training programs out there, each with its own unique flavor. Here are a few of the most popular ones:

Onboarding training

Starting a new job can be like landing on a new planet. Everything feels new, exciting, and a little intimidating. Onboarding training helps your new hires acclimate to their surroundings, understand their mission, and get off to a successful start. Research by Glassdoor found that organizations with a robust onboarding process can improve new hire retention by 82%.

Technical skills training

Need a team that can build a rocket to that new planet (or, you know, just master the latest software)? Technical skills training is your go-to for developing those role-specific skills that keep your business running like a well-oiled machine. 

Soft skills training

Of course, technical skills are important. But these days, it’s all about those human skills that robots can’t copy (yet!). Think communication, leadership, teamwork, and problem-solving. McKinsey predicts a 24% rise in hours spent by U.S. and European workers on soft skills by 2055. This is because they are harder for automation and AI to replicate. So, if you want your team to truly shine, don’t forget to polish those soft skills. 

Compliance training

Okay, nobody loves compliance training, but it’s kind of a big deal. Basically, it’s the safety harness that keeps your employees (and your business) from taking a nosedive. Whether it’s HIPAA for healthcare, legal protocols for attorneys, or data security for tech wizards, compliance training ensures everyone’s on the same page and playing by the rules. 

Continuous learning programs: Resting on your laurels isn’t the move. Continuous learning programs provide your employees with the ongoing education they need to keep growing, developing, and reaching new heights.

How employee training really works

Ever wonder what goes on behind the scenes of a truly successful employee training program? While every program is distinctive, most follow a similar four-step recipe:

4 steps of employee training

  1. Needs analysis: First and foremost, you need to figure out what kind of training your team actually needs. It’s like baking a cake—before you jump in the kitchen, you need to know what kind of cake you’re making (chocolate, vanilla, red velvet?). Also, you need to know what you’re making it for (a birthday party, a wedding, or just a Tuesday night treat?). 
  2. Program design: This is where you develop your training materials and activities, ensuring they align with your business goals and learning objectives. Keep in mind, the quality of your ingredients matters. 
  3. Delivery methods: The delivery method you choose can make a big difference in how your training is received. Will you go with eLearning, workshops, simulations, or good old-fashioned on-the-job training? Choose the method that best suits your team’s needs and individual learning styles.
  4. Evaluation: Is your cake a masterpiece or a flop? Evaluation helps you assess the effectiveness of your training program and make adjustments as needed. Did it rise to the occasion? Was it too dry, too sweet, or just right? Feedback is your friend here—use it to tweak your recipe and create a truly delicious training experience. 

Of course, no modern kitchen is complete without some high-tech gadgets. Learning Management Systems (LMS) are like the stand mixers of the training world. They provide a centralized platform for delivering, tracking, and managing your programs, making it easier to track progress, measure results, and ensure continuous improvement.

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What’s in it for you?

So, you’re ready to invest in your employees’ training. But why should you care? Well, because it’s also an investment in your own success! Altogether, effective employee training programs offer a host of benefits for both businesses and employees.

Employee training benefits for organizations:

  • Increased productivity and efficiency: Skilled employees get the job done faster, better, and with fewer hiccups. This leads to improved business outcomes and a healthier bottom line. In fact, a study by McKinsey found that companies with a strong learning culture are 25% more likely to outperform their competitors in terms of innovation, revenue growth, and profitability.
  • Higher employee satisfaction and retention: When your people feel valued and supported, they reward you with loyalty. Investing in employee development shows that you care about their success. Thus, leading to increased job satisfaction and reduced turnover.
  • Reduced skill gaps and enhanced innovation: Training helps to close skill gaps and equip employees with the knowledge and abilities needed to boost innovation. Staying ahead of the competition means having a workforce that’s constantly learning and adapting.

Employee training benefits for employees:

  • Enhanced skills and knowledge: Training gives employees the opportunity to challenge themselves, develop new skills, and expand their knowledge, making them more valuable to the organization and increasing their career opportunities.
  • Increased job satisfaction and motivation: Feeling competent and confident to perform their jobs well can lead to higher job satisfaction and motivation. A study by Gallup found that engaged employees are 17% more productive and 20% more likely to go the extra mile for their company.
  • Improved career prospects: Developing new skills and knowledge can open up new career paths and opportunities for advancement.
  • Reduced skill gaps and enhanced innovation: Training helps to close skill gaps and equip employees with the knowledge and abilities needed to drive innovation and growth. 

And there you have it!

If you thought employee training was just another boring HR checklist item, think again. It’s an investment in your people that pays dividends. Transforming your workforce into a productivity powerhouse, a retention magnet, and an innovation engine.

Now that you understand the what, why, and how of employee training, you can create a learning environment where your employees thrive and your business booms.

Ready to take your training programs to the next level? Zensai’s Learn365 is a powerful LMS solution that helps you create, deliver, and manage engaging employee training programs that get results. Book a demo with our team today to see how Learn365 can build your future-proof workforce.

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