top of page
  • g3 cnc

(5) Reduction in Employee Costs

Actualizado: 19 dic 2022

In this series we are discussing the benefits of employee training as it relates to the CNC machining industry, and why it's critical in today's manufacturing environment. A common objection we hear on this subject is, "Why should I train my employees, they will just leave and go somewhere else." The answers to this question are too numerous to list here, but this is a great conversation piece. The quote by Zig Ziglar is helpful to put this in context. “The only thing worse then training an employee and losing them, is not training them and keeping them.”


In part 5, we are discussing a reduction in employee costs as a benefit to employee training. How training employees, even though we are often spending money to do so, results in lower employee costs. This is particularly true if we adopt a continuous training mindset throughout our company. When our CNC staff receive the proper skills training, it provides us with a wealth of benefits, which is our topic in this series.


Previously on this Subject


At this point, I am feeling the need to put the brakes on and define what this training looks like though. The type of training we are referring to here is not a one-time event, an occasional machine training, or sporadic organizational training. Let’s be honest, many of us have worked with companies and that is how the training was, basically nonexistent in terms of skills training. Often when something bad happens, a customer failure, or a certain amount of scrap is produced, it triggers a management decision to train the employees to prevent this type of thing from happening again. And usually within a few months if we are lucky, possibly even a few weeks, everyone is buried in work and the training slips through the cracks and is never spoken of again. Until the next major event triggers the same conversation. The fact is that it can be very difficult to provide structured skills training using internal resources. Skills training usually hangs out at the bottom of the totem pole of priority, often being kicked down the road indefinitely. Internal resources are typically not respected in terms of expertise like an outside expert, and internal resources are not usually dedicated to the training, the scheduling, and the management of the training because it’s not their job. It is often thrown onto the plate of already overloaded employee(s). And we all know this is a recipe for failure.


The good news is that G3CNC provides the structure, expertise, management, and external influence to prevent these slips, oversights etc., to ensure skills training becomes a regular occurrence and employees are progressing regardless of how busy the shop gets. Training should be a structured, ongoing process, monthly, or at a minimal quarterly.


Moving on.


Reduction in Employee Costs

Previously, we made the case for employee training in terms of employee retention, which we know is substantial cost savings, and arguably the most significant expensive in relation to this topic. Additionally, we previously discussed the topic of increased productivity as related to adopting structured training programs. And while this isn’t necessarily associated with cost, higher employee productivity certainly improves the bottom line. When it comes down to it, all the benefits of regular skills training are directly attributable to an improved cost structure and higher profitability.


A More Refined Workforce


In addition to the increased productivity and cost reductions, we ultimately create a refined, highly skilled workforce. A structured training program aid in reducing your overall employee salary costs through a more refined workforce. It stands to reason that if you have 10 well-trained and efficient employees, they can often do the same as 15 untrained, unmotivated, and uninspired employees.


I don’t have the exact numbers on what this looks like, we do know the costs attributable to each employee in terms of benefits and salary. More employees place a greater burden on your other employees as well as infrastructure. But the major advantage I feel on this topic is a reduced volume of mistakes and reworks.


There is a direct correlation between employee skill level and mistakes/rework. As employee skill level increases, mistakes and reworks decrease and we get closer to the “do it right the first time” mantra.


Mistakes come in all shapes and sizes, and as we educated our employees, they will know the difference between 303 & 304 stainless, they will know how to properly inspect their work, they will know how to confidently read a drawing, and the mistakes that are always a major interruption in workflow begin to slowly melt away. What we are left with is a finely tuned machine that is running on all cylinders.


I am not suggesting mistakes will ever be eliminated altogether, it’s always going to be a part of our business. However, skilled employees produce far less on average and is a substantial cost savings over time.



About g3cnc


G3cncs training modules are a powerful tool to achieve the type of skill and effectiveness you want with your employees. Skilled employees make everyone's job easier around them and put you into a position where your organization is running like a finely tuned race car.


G3CNC takes the burden off your internal resources by providing all the training resources that a modern machine shop needs to keep your employees engaged in their work, inspired, and performing at their best.

If you’re intrigued and interested in developing higher skill levels, please contact g3cnc today to begin a discussion around how we can help you accomplish this contact@g3cnc.net.


14 visualizaciones0 comentarios

Entradas Recientes

Ver todo
bottom of page