In-house training helps employers to keep control over the skills their employees are learning and allows companies to ensure their business needs are being met.
That is according to David Gallagher, head of skills leadership at Working Links, an organisation which aims to help the long-term unemployed.
Mr Gallagher explained that training on the job also helps employees as it is motivating for them to learn skills that can be put to practical use in the workplace.
Commenting on the benefits for employers, he explained: "Work-based training also gives employers better ownership over training and good employers take an active part in shaping the training that is delivered so that it meets the needs of their business."
The Department for Innovation, Universities and Skills (London), has revealed that Londoners are taking advantage of the governments £26.5 million investment in skills and training.
Some £15 million has been invested to help those who have lost their job, or fear redundancy to get back to work.