Education and Training are both crucial to the advancement of every business from the smallest to the largest. What many companies overlook is the importance of not only initial training but ongoing training as well.
As we all know business, the economy, and markets change continuously. It should therefore come as no surprise that the training programs meant to support employees and management at every company must change to match. Here are some ways education and training can be utilized to not only affect business but the economy as well.
Education as a Foundation
There can be no reasonable doubt the average person’s increase in literacy, mathematics skills and knowledge of history over the last 150 years has dramatically improved the economy, quality of life and overall strength of the United States and other countries like it.
The reason these things make it possible for national economies to improve is because at a basic level it allows one group of people communicate their skills and abilities to another group of people in a standardized fashion.
Never before in human history has it been possible for the anyone to obtain the wealth of knowledge and understanding available to an average person in the United States. For a minimal monthly fee a person can obtain access to over a million professionally written books. With an Internet connection an average person can obtain access to an encyclopedia that contains more knowledge than any encyclopedia ever published on paper.
The combination of just these two elements means it is possible for an average person to educate themselves to at least a novice level on nearly any subject known to man. In business, this makes employees far more versatile and far better at obtaining knowledge and skill sets extemporaneously.
Training as Practical Application
What training does is teach these new educated employees how to put their knowledge into action. For example if someone teaches themselves how to use video editing software they might be able to help their company produce a video series to train other employees of that company to use the same software.
Without that knowledge such a video series would either not be produced, or require considerable investments of time and money. The remaining employees in the company would likely be required to obtain the knowledge on their own.
Training and education can even be combined. When the results are considered, even the impact of the Course Hero cost to students or teachers is trivial. Such a platform not only allows for education, but organically improves it through feedback, peer critique and evaluation.
Combining Foundation and Application
These two phenomena when combined lead to something called institutional knowledge. This allows a company to “know” things about its market without having to invest the time or money to obtain the knowledge on its own. It is among the group of economic phenomena called “wealth amplifiers.” Institutional knowledge brings better products to market faster and makes the companies that take advantage of education and training more profitable.
A collection of companies utilizing education and training and becoming more profitable as a result contribute to a better economy.
A corresponding and potentially far more powerful effect of education and training is that a group of more skilled and more capable employees make the company itself more valuable. This leads to increases in stock price, decreases in debt and an overall improvement in the equity value of a company and improvement in the value of the products or services that company produces. It is been famously said the most valuable thing a company has is its employees.
With the right combination of education and training this wise statement becomes more true every day.
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