Why Employee Training Programs Matter for Small Businesses: Lessons from an HR Expert

Imagine launching a small manufacturing unit, hiring a skilled technician, and expecting them to master your unique production line without guidance. That’s a recipe for trouble, isn’t it? Many small business owners believe they can hire the “perfect” employee who needs no training, but this is a costly myth. In a recent Dream Big podcast episode by the deAsra Foundation, HR expert Sajiri Chidgupkar, with over 16 years of experience, set the record straight. 

She explained why employee training programs are a vital investment for small businesses, much like insurance for unexpected setbacks. This blog draws on her insights to explore why training drives growth, how to deliver it affordably, and how it links to employee retention strategies. Whether you run a nano workshop or a micro retail shop, you’ll find practical ways to build a skilled, loyal team that powers your business.

The Myth of the “Perfect Employee”

Small business owners often dream of hiring someone who walks in ready to perform—no training needed. Sajiri calls this a myth. “There’s no such thing as a perfect resource—you won’t get one,” she says. Even employees with strong qualifications need employee training programs to align with your business’s unique processes and culture. 

For example, a jeweller hiring a skilled artisan still needs to train them on specific design techniques or customer interaction styles unique to the shop. Without employee training programs for small businesses, you risk errors and wasted potential. Training ensures every team member understands their role and contributes effectively to your business’s goals.

Why Training is a Must-Have Investment

Think of employee training programs as insurance for your business. You don’t buy insurance expecting a crisis, but you know it’s there to protect you. Similarly, training equips your team to succeed, preventing costly mistakes. Sajiri explains, “Training is an investment. Like we invest in products, services, or marketing, training is just as crucial.” For small businesses, where every decision impacts the bottom line, employee training programs for small businesses are essential to boost productivity and build a culture of growth. A small bakery, for instance, can improve efficiency by training staff on precise baking techniques, leading to better products and happier customers.

Hands-On Training: The Small Business Way

Unlike large corporations with budgets for formal training rooms, small businesses thrive on practical, hands-on approaches. Sajiri emphasises that employee training programs for small businesses should focus on role clarity and real-world learning. “Spend time with the person, give them role clarity, help them understand what’s expected and what works here,” she advises. In a small textile unit, this might mean showing a new worker how to operate a loom or check fabric quality. 

Observation is also key—employees learn by watching seniors or the business owner. Documenting key tasks in a simple guide, like how to maintain equipment, ensures consistency. Even an hour a day can meet training needs if done regularly with a clear plan.

Overcoming Resistance to Training

Some employees claim they “know it all,” resisting employee training programs. Sajiri suggests addressing this with an open conversation to assess their skills. If they’re skilled, acknowledge their expertise and show how it fits your business. If there’s a gap, explain that your business operates differently. 

For instance, a carpenter in a furniture workshop might know woodworking but need training on your specific finishing techniques. This approach makes training meaningful, showing employees how their role drives success. It’s about aligning their skills with your business’s unique needs, not pointing out what they lack.

The Link Between Training and Retention

Training is a cornerstone of employee retention strategies. Small businesses often face turnover when a trained employee leaves for a slightly better salary. Sajiri acknowledges this but warns, “What’s worse is not training someone who stays.” An untrained employee who stays can drag down productivity and morale. To improve employee retention strategies, foster a transparent culture. Share your business’s vision to show employees their future. A small packaging unit, for example, could discuss plans to expand, hinting at supervisory roles for loyal staff. Team bonding, like a group visit to a local trade fair, creates a “feel-good factor” that encourages employees to stay.

Balancing Salaries and Retention

Salaries often drive turnover in small businesses with tight budgets. Sajiri advises creating a manpower budget to pay fair salaries for critical roles. “Being overly frugal with salaries is a mistake,” she warns. When she started her business, she took a lower salary to ensure her team was well-paid, recognising their role in growth. For low-skill roles, like a helper in a small printing press, accept that turnover may happen, as these roles are easy to train. 

For senior roles, focus on employee retention strategies like offering growth opportunities through employee training programs for small businesses, and keeping key players engaged.

Building a Learning Culture

A learning culture makes learning part of your business’s core, not just a one-off task. Encourage employees to develop skills through peer-to-peer training or informal sessions. In a microelectronics shop, for instance, a skilled worker could teach others how to test circuits, boosting team capability. Fun learning methods, like a mock “quality control challenge” in a toy manufacturing unit, build skills and camaraderie. A learning culture enhances employee retention strategies by empowering employees to share ideas, driving innovation and loyalty.

Cost-Effective Training for Small Budgets

Worried about the cost of employee training programs for small businesses? You don’t need a big budget. Use existing team members’ skills to train others, or invest your own time as the owner. A simple checklist, like a guide for handling customer orders, streamlines training without extra costs. For more tips, check the deAsra Foundation’s blog for practical advice on managing small business challenges. Start with small, regular training sessions to build capability without breaking the bank.

Onboarding: The First Step to Success

A solid onboarding process sets employees up for success. Even in a nano business, document basics like work hours or safety rules. Assign a senior employee or yourself to guide new hires in their first week. For example, a small chemical processing unit might train a worker on safe material handling. Clear communication during onboarding, part of employee training programs for small businesses, reduces confusion and ties to employee retention strategies by making new hires feel valued.

The Emotional Side of Retention

Small business teams are close-knit, and losing an employee can feel personal. Sajiri encourages owners to see turnover as part of growth. By investing in employee training programs, you create a pipeline of skilled workers, ensuring stability when someone leaves. A transparent culture, where employees feel comfortable discussing concerns, builds loyalty. For instance, a small metal fabrication shop fostering open communication can retain key staff longer, strengthening employee retention strategies.

Conclusion: Training as Your Business’s Foundation

Employee training programs are the backbone of a thriving small business. By debunking the “perfect employee” myth, delivering hands-on training, and fostering a learning culture, you empower your team to succeed. Combine this with employee retention strategies like open communication and team bonding, and you’ll create a workplace where employees grow with your business. Start small, document your processes, and watch your team—and your business—thrive.

FAQs

1. Why do small businesses need employee training programs if they hire skilled workers?

Even skilled workers need employee training programs to adapt to your business’s unique processes and culture. For example, a skilled tailor in a small boutique may need training on your specific stitching techniques or customer service style. Employee training programs for small businesses ensure role clarity, boost productivity, and align employees with your goals, preventing costly errors and fostering growth.

2. How can small businesses afford employee training programs with limited budgets?

Small businesses can deliver employee training programs for small businesses cost-effectively by using existing team members’ skills or the owner’s time. A simple checklist or one-page guide, like how to use a specific machine in a manufacturing unit, streamlines training without extra costs. Regular, hands-on sessions, even an hour a day, can build capability without straining your budget.

3. What’s the best way to handle employees who resist training?

To address resistance, have an open conversation to assess the employee’s skills and explain how employee training programs align with your business’s needs. For instance, a technician in a small electronics shop might know repairs but need training on your specific equipment. Acknowledge their expertise, then show how training enhances their role, making it meaningful and reducing pushback.

4. How do employee training programs help with employee retention strategies?

Employee training programs are a key part of employee retention strategies because they show employees they’re valued and have a future with your business. For example, training a worker in a small packaging unit on advanced tasks can signal growth opportunities, encouraging loyalty. Pairing training with transparent communication and team bonding, like group outings, further boosts retention.

5. What’s the first step to creating effective employee training programs for small businesses?

Start by documenting a simple onboarding process, a cornerstone of employee training programs for small businesses. Create a one-page guide covering basics like work hours or key tasks, such as safety protocols in a chemical processing unit. Assign a senior employee or yourself to guide new hires in their first week, ensuring clarity and setting the stage for strong employee retention strategies.