How to train new employees: A hiring guide for businesses

Staying ahead of the competition goes beyond selling a great product or service. Fostering a team of skilled and adaptable employees is just as important.

But with up to 93% of businesses concerned about employee retention, building that dream team is often easier said than done.1 The journey to a skilled and adaptable workforce starts with how you interview candidates and hire employees, and once you've found the right people, training and continuous learning are key to keeping them engaged and thriving.

Whether you’re a small business or a high-growth startup, read on for top tips on how to train new employees.

What is employee onboarding?

Integrating a new employee into your organization is known as employee onboarding. This process typically involves introducing them to their role and responsibilities as well as your company's policies, procedures, and culture.

No matter what kind of business you run, the goal of employee onboarding is to welcome new hires and provide them with the foundational knowledge and context they need to succeed in their job.

But how much does it cost to train new employees? The investment in onboarding can vary greatly depending on your industry, role complexity, and the training methods you choose. Regardless of the final price tag, remember that every dollar you spend in properly training your new hires is an investment in your business.

How to train new employees effectively

Ready to create or improve your training plan? Here are the steps on how to effectively train new employees and set the stage for long-term success.

  1. Prepare for employee training

    Start by assessing your training needs for the role(s) you’ve hired and defining clear goals and expectations.

    Use these pointers to create a training plan and identify targeted learning objectives:

    • What specific skills and competencies are required for success in this role?
    • How do the skills needed for this role differ from other roles within the company?
    • Are there industry-specific or company-specific skills that are important for this role?
    • What are the skill gaps or areas where new hires may need additional training or development?
    • What resources, tools, or materials will be necessary to facilitate the training process?
    • What is the allocated budget for new hire training, and is it sufficient to meet training goals?
    • How can you tailor your training program to address the individual learning needs and preferences of every new hire?
    • Are there mentorship opportunities that can complement formal training?
  2. Design a comprehensive training program

    A well-designed program is at the core of any effective training. Consider these factors:

    • Customized training programs based on the role: Each role within your organization will have unique skill requirements. Customize your training programs to address these specific needs. For example, what works for a sales executive may not be suitable for a software engineer.
    • Vary training methods: Embrace a blend of training methods to cater to different learning styles and preferences, such as on-the-job training, e-learning modules, workshops, and one-on-one instruction. Also, introduce real-world scenarios and case studies relevant to your industry and company to help prepare new hires for the challenges they may encounter in their roles.
    • Don’t forget about your company culture: Training is about more than just skills. It's an opportunity to instill your company's values and mission in every employee, so be sure to include information on your company culture in any training materials.
  3. Create engaging training materials

    While it can be tempting to cram in as much detail as possible into your training materials, remember that how you present information matters just as much as the information itself.

    So before you task your web team with creating a new, high-tech training hub, take these tips into consideration:

    • Make it entertaining and interactive: Incorporate a variety of media, such as videos, images, infographics, and audio, to make training content more visually appealing and interactive. Take it up a notch with quizzes, polls, interactive exercises, and simulations to actively engage new hires and reinforce learning.
    • Story tell: Weave real-life stories and scenarios into your training materials to make the content relatable and memorable. Stories can help new hires connect with the information on a personal level and apply it once they’re out in the field.
    • Keep it bite-sized: Break down training content into digestible, bite-sized modules or segments to avoid overwhelming new hires with an information dump.
    • Gamify it: Introduce gamification elements, such as leaderboards, rewards, and challenges, to make the training more enjoyable and competitive.
    • Keep it user-friendly: Ensure the training materials are accessible through an intuitive, easy-to-navigate platform.
    • Update regularly: Keep the training materials up-to-date with the latest information and industry trends. After all, no employee wants to read a training handbook drafted years ago as the content may no longer be relevant or compliant.
  4. Select and prepare trainers

    Now you’re ready to identify individuals within your organization to oversee the training for new employees. Look for people who possess both expertise in the subject matter and a knack for effective teaching — ask yourself: are they passionate about sharing knowledge? Can they explain complex topics clearly and patiently? Do they have experience mentoring or coaching others?

    You may also need to decide if you need to hire external experts for any portion of the training. This can be especially helpful for specialized skills or to provide a fresh perspective.

    Supporting your trainers is key to their success (and the success of your new hires!). Borrow these tips:

    • Provide comprehensive training materials: Equip trainers with well-organized, up-to-date resources like handbooks, presentations, and interactive exercises.
    • Offer technology and tools: Trainers should have access to the equipment they need to deliver engaging training sessions — think: projectors, laptops, online learning platforms, or video conferencing tools.
    • Facilitate "train-the-trainer" sessions: Just because someone can do the job well doesn’t mean they can explain it to someone else. Consider hosting workshops to review best practices for training new employees, including adult learning principles, effective communication techniques, and how to create an inclusive learning environment.
  5. Onboarding process: The initial training phase

    When you begin employee onboarding, start with the essentials. This may involve:

    • Company policies and procedures: Include the code of conduct, health and safety policies, data security protocols, and employee benefits.
    • Organizational structure: Provide an overview of key departments and leadership to help new employees navigate their roles within the larger framework. An organizational chart is also helpful here.
    • Job requirements: What are your new hire’s responsibilities and performance expectations?
    • Hands-on training for company-specific technology, software, and apps: Consider online tutorials, in-person demonstrations, or job shadowing.

    But remember: one size doesn't fit all. Here's how different industries can level up their onboarding:

    • Retail: For sales associates, focus on product knowledge, customer service skills, and point-of-sale system training. Role-playing scenarios can also help them practice handling different customer interactions.
    • Technology: Onboarding for software developers might involve deep dives into the company's existing codebase.
    • Healthcare: Nurses and medical professionals require extensive training on patient care protocols, safety procedures, and medical record systems. Simulations and hands-on practice in a safe setting are extremely valuable before having them face real-world challenges.
    • Manufacturing: For workers to excel, they need a thorough understanding of safety regulations, how to operate specialized equipment, and the importance of quality control. On-the-job training and apprenticeships can be incredibly effective here as well.
  6. Monitor and assess training effectiveness

    As your new employees work through their training, it’s important to monitor their progress and performance. Use these tips to help:

    • Establish KPIs and adjust as needed: Common key performance indicators (KPIs) for training new employees may include completion rates, pass rates on assessments, time to proficiency, and employee satisfaction with training content. By defining these KPIs, you can better assess the overall success of your training initiatives and make data-driven decisions to enhance future training strategies.
    • Measure knowledge retention: Regular assessments and quizzes help gauge how well trainees retain information, pinpointing areas that may need reinforcement.
    • Gather feedback: Don't just assume everything is going smoothly. For trainers, ask questions like: "What's working well? Are there any roadblocks?” For trainees, ask about their experience: "Is the training hitting the mark? Do you feel supported? What could be improved?" This two-way communication helps you fine-tune your training program for maximum impact.
  7. Foster a learning culture

    One of the best ways to cultivate a culture of learning with new and existing employees is to recognize and reward them. Here are a few places to start:

    • Celebrate progress: When organizations acknowledge the accomplishments of their employees, it not only boosts morale but also reinforces the value of continuous learning. Whether through promotions, bonuses, or public recognition, recognizing and rewarding employees’ efforts can encourage others to invest in their professional growth.
    • Review performance: Integrating learning and development into performance reviews is a strategic way to align individual goals with organizational objectives. By assessing and discussing an employee's progress in acquiring new skills or knowledge, organizations can build a better, more engaged workforce.
    • Share success stories: Highlighting employee success shows others how investing in learning can lead to personal and professional growth, encouraging more employees to participate in similar opportunities.
  8. Embrace technological advancements in training

    Looking to bring your employee training into the future? Check out these tech-focused strategies:

    • E-learning platforms: These platforms offer a centralized hub for training resources, allowing employees to learn at their own pace and revisit materials as needed.
    • Virtual reality (VR) and augmented reality (AR): VR can simulate real-world scenarios, allowing employees to practice tasks in a safe environment, while AR can provide on-the-job guidance by overlaying digital information onto physical workspaces.
    • Artificial intelligence (AI): AI-powered chatbots and virtual assistants can provide quick answers to employee questions and offer personalized training recommendations. AI can also analyze employee performance data to identify areas where additional training may be needed.
    • Social learning platforms: Foster a sense of community and collaboration by integrating social learning platforms into training. These platforms enable employees to share knowledge, ask questions, and learn from each other.
  9. Ongoing training and skill development

    Many leadership and development experts agree that proactively building employee skills can help navigate the future of work. And more importantly, opportunities to learn and develop new skills are important to nearly 30% of applicants when considering a new job.1

    To encourage continuous learning, make sure to go beyond periodic training sessions. Instead, promote ongoing learning as an integral part of your company culture, so employees become more adaptable and up-to-date on industry trends.

    The numbers speak for themselves: employees who participate job training opportunities say that their overall job performance was improved as a result.2

  10. Examples of successful training implementation

    The beauty of measuring training effectiveness is that it can be tailored to your specific goals. For a fast-growing tech startup with hands-on learning and mentorship, success might involve metrics like how quickly new developers become proficient, how satisfied employees are with the onboarding process (through surveys), and, ultimately, the speed and quality of new feature releases.

    Comparatively, a retail company that wants to improve its customer service might focus its sales associate training program on product knowledge, communication skills, and handling challenging customer interactions through role-playing. To gauge effectiveness, they may look at improvements in customer satisfaction scores, a reduction in customer complaints, and an increase in sales conversions.

Take advantage of effective employee training strategies to empower your team

Now that you’re familiar with how to train employees, one thing should be clear: in today’s competitive landscape, investing in their development is non-negotiable. But building a high-quality training program— let alone providing ongoing learning resources to your entire team — can be expensive.

The good news is that managing these expenses doesn’t have to be a headache. With PayPal, you can streamline payments for everything training-related: onboarding costs, payroll for new employees, subscriptions to online learning platforms, even ordering pizza for that training day lunch.

The result? You gain a competitive edge by navigating industry changes, staying current with trends, and retaining top talent. Check out more employee retention strategies, plus tips to manage your employees.

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