Did you know that a recent survey found that 71% of employers believe that commercial awareness is one of the most important skills for their employees to possess?
With the fast-paced nature of the business world, employees who have a deep understanding of the industry, market trends, and financial performance are highly sought after.
This is where commercial awareness training comes into play, offering employees the opportunity to develop valuable skills that can help them excel in their roles and contribute to the success of their organisation.
Commercial awareness training programs can be highly effective in raising general business and financial acumen in an organisation.
In this article, we will explore how commercial awareness training can help employees excel in the business world.
1. Better understanding of your organisation's financial performance and key value drivers
One of the key benefits of commercial awareness training is that it can help employees better understand their organisation's financial performance and key value drivers.
This is important because employees who have a clear understanding of how their organisation makes money are better equipped to contribute to its success.
Commercial awareness training can provide employees with insights into how their role fits into the bigger picture and how other roles and departments contribute to the organisation's financial performance.
By gaining this understanding, employees can make better decisions in their day-to-day work, which can help to drive organisational performance.
According to a recent study by Deloitte, 94% of business leaders believe that employees with a good understanding of commercial awareness are crucial to the success of their organisation.
Furthermore, the study found that organisations that invest in commercial awareness training for their employees have a competitive advantage in the market.
2. Making better decisions to drive organisational performance
When employees have a clear understanding of how their organisation makes money, they can make better decisions to drive organisational performance.
For example, if an employee works in marketing and understands how much of the company's revenue is derived from different promotional initiatives, they can focus their attention and efforts on the medium or initiative that leads to higher sales.
Commercial awareness training can help employees to develop the skills they need to make better decisions. By learning about key financial metrics such as revenue, profit margins, and return on investment (ROI), employees can make more informed decisions that are aligned with the organisation's overall goals.
According to a recent study by the Association for Talent Development (ATD), organisations that invest in commercial awareness training programs for their employees experience a 24% increase in revenue growth compared to those that do not invest in such training.
This highlights the importance of developing employees' commercial awareness skills in driving organisational performance.
3. Developing critical thinking skills
Commercial awareness training can also help employees to develop critical thinking skills. Critical thinking is an important skill for employees to have because it enables them to evaluate information, identify problems, and develop solutions.
By developing critical thinking skills, employees can make better decisions and contribute more effectively to their organisation. They can also identify opportunities for improvement and come up with new ideas to drive organisational growth.
According to a study by the Society for Human Resource Management, 95% of employers believe that critical thinking skills are "very important" or "essential" in new hires, highlighting the increasing demand for employees who possess these skills.
4. Gaining a competitive edge
Commercial awareness can provide employees with a competitive edge in the business world. In today's fast-paced business environment, it is not enough to have job-specific skills.
Employers are looking for employees who have a broader understanding of the business world and who can contribute to the organisation's success in a variety of ways.
Commercial awareness training can provide employees with the skills they need to stand out in a competitive job market.
By developing a better understanding of their organisation's financial performance and key value drivers, employees can demonstrate their ability to make informed decisions and contribute to the organisation's success.
According to a recent survey by the National Association of Colleges and Employers (NACE), employers rated the ability to demonstrate commercial awareness as one of the top five skills they look for in job candidates. This highlights the importance of commercial awareness in gaining a competitive edge in the job market.
5. Improving communication and collaboration
Commercial awareness training can also help to improve communication and collaboration within an organisation.
When employees understand the financial performance of their organisation and how different roles and departments contribute to that performance, they are better equipped to communicate and collaborate effectively with their colleagues.
By developing a shared understanding of the organisation's financial goals and objectives, employees can work together more effectively to achieve those goals.
This can lead to improved teamwork, better decision-making, and a more positive and productive workplace culture.
According to a survey by McKinsey, 73% of executives believe that cross-functional collaboration is important or very important for driving growth in their organisations.
Developing commercial awareness can help employees to better understand how different functions and departments within the organisation contribute to its success, leading to improved collaboration and ultimately, better business outcomes.
6. Mitigating risks and managing costs
Commercial awareness training can also help employees to mitigate risks and manage costs within an organisation.
By understanding the financial implications of their decisions, employees can make more informed choices that help to minimise risks and reduce costs.
For example, an employee who understands the financial implications of different supply chain decisions can make choices that help to minimise supply chain costs and reduce waste.
Similarly, an employee who understands the financial implications of different marketing strategies can make choices that help to maximise returns on investment.
Mitigating risks and managing costs are critical functions for any business, and commercial awareness training can equip employees with the skills they need to fulfil these responsibilities effectively.
By identifying and addressing potential financial risks, employees can help to safeguard the organisation's financial health.
Conclusion
Commercial awareness training can help employees to develop a range of valuable skills, including financial acumen, critical thinking, and effective communication and collaboration.
By understanding the financial performance of their organisation and how their role contributes to that performance, employees can make better decisions that drive organisational success.
In today's highly competitive business environment, commercial awareness is a key differentiator for employees.
Employers are looking for candidates who have a broad understanding of the business world and who can contribute to the organisation's success in a variety of ways.
By investing in commercial awareness training, organisations can develop a workforce that is better equipped to meet these demands and excel in the business world.
If you're interested in learning more about commercial awareness training, MDA Training offers a range of courses and programs to help employees develop these essential skills. Contact MDA Training today to schedule a free demo and learn how their training programs can help your organisation succeed.