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It makes you familiar with their coding questions:-
I'm from my experience can say that practicing on various competitive platforms like codechef, leetcode, topcoder, and codeforces, etc make you familiar with the data structure & algorithms questions mostly asked in top software companies, so that you become comfortable while solving such questions during interviews.
It makes you faster and focused:-
Training and taking part in programming contests of such sites make you more and more disciplined, faster, and a focused coder. In the competition, you must solve problems in stressful situations and do it up against a deadline or you will lose. Taking part in competitive programming teaches you how to be more focused on the task and not only complete it quickly, but accurately. These skills are highly beneficial for any job, not just in coding.
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It helps you in solving complicated DS & ALGO problems:-
In top companies like Google, Facebook, Amazon, Microsoft, etc. You will solve complex problems, which are not for ordinary programmers. While you are practicing, you will learn how to solve these out of the ordinary tasks. This helps prepare you for a job because you can adapt and solve various types of problems.
It teaches you teamwork coordination:-
This is a very important skill, as most jobs will require you at some point to work in a team. Competitive programming helps you learn how to effectively work together, as you must work with others on your team to complete the same task. You learn how to assess your team members’ strength and weaknesses and effectively divide responsibilities between each other.
Participation and practicing helps you prepare for a career in coding:-
Participating in a coding competition is something you should absolutely highlight on your resume. Nowadays having experience in competitive programming shows employers you can work in a team, solve complicated problems, work in stressful situations, manage time and deadlines and minimize errors.