THE ROLE OF TRAINING AND DEVELOPMENT IN BANKING SECTOR Introduction Since the beginning of the twentieth century and especially after World War II, training programs have become widespread among organizations in the United States, involving more and more employees and also expanding in content. In the 1910s, only a few large companies such as Westinghouse, General Electric, and International Harvester had factory schools that focused on training technical skills for entry-level workers. By the 1990s, forty percent of the Fortune 500 firms have had a corporate university or learning center. In recent decades, as the U.S.
Transcript
THE ROLE OF TRAINING AND DEVELOPMENT IN
BANKING SECTOR
Introduction
Since the beginning of the twentieth century and especially after World War II, training
programs have become widespread among organizations in the United States, involving more
and more employees and also expanding in content. In the 1910s, only a few large companies
such as Westinghouse, General Electric, and International Harvester had factory schools that
focused on training technical skills for entry-level workers. By the 1990s, forty percent of the
Fortune 500 firms have had a corporate university or learning center. In recent decades, as the
U.S. companies are confronted with technological changes, domestic social problems and global
economic competition, training programs in organizations have received even more attention,
touted as almost a panacea for organizational problem.
The enormous expansion in the content of training programs over time has now largely been
taken for granted. Now people would rarely question the necessity of training in conversational
skills. However, back to the 1920s, the idea that organizations should devote resources to
training employees in such skills would have been regarded as absurd. Such skills clearly were
not part of the exact knowledge and methods that the employee will use on his particular job or
the job just ahead of him. Nevertheless, seventy years later, eleven percent of U.S. organizations
deem communications skills as the most important on their priority lists of training, and many
more regard it as highly important. More than three hundred training organizations specialize in
communications training (Training and Development Organizations Directory, 1994).
Previous studies on training have largely focused on the incidence of formal training and the
total amount of training offered. This study, however, draws attention to the enormous expansion
in the content of training with an emphasis on the rise of personal development training (or
popularly known as the "soft skills" training, such as leadership, teamwork, creativity,
conversational skills and time management training). Personal development training can be
defined as training programs that aim at improving one's cognitive and behavioral skills in
dealing with one self and others. It is intended to develop one's personal potential and is not
immediately related to the technical aspects of one's job tasks. Monahan, Meyer and Scott (1994)
describe the spread of personal development training programs based on their survey of and
interviews with more than one hundred organizations in Northern California. "Training programs
became more elaborate; they incorporated, in addition to technical training for workers and
human relations training for supervisors and managers, a widening array of developmental,
personal growth, and self-management courses. Courses of this nature include office
professionalism, time management, individual contributor programs, entrepreneur, transacting
with people, and applying intelligence in the workplace, career management, and structured
problem solving. Courses are also offered on health and personal well-being, including safe
Training is one element many corporations consider when looking to advance people and offer
promotions. Although many employees recognize the high value those in management place on
training and development, some employees are still reluctant to be trained. It is not uncommon to
hear excuses regarding why someone has not received training.
Some people are just comfortable in what they are doing. Some fail to see the value of training
because they really believe that they already know it all. And while that might be true, the
knowledge value of training and development is not the only perk.
Training and development offers more than just increased knowledge. It offers the added
advantage of networking and drawing from others’ experiences. When you attend a seminar or
event with others who have jobs that are much like yours, you have the added benefit of sharing
from life experience. The seminar notes or the conference leader might not give you the key
nugget you take back and implement in the workplace. Your best piece of advice for the day
might come from the peer sitting beside you.
Another common excuse is that there is not enough money budgeted to pay for training. Who
said that training always carries a heavy enrollment fee? Training can be free. You can set up
meetings with peers who are in similar positions and ask how they are doing their jobs. Follow
someone for a day to see how he organizes or manages his work and time. The cost to you is a
day out of your normal routine, so the only drawback may be working a little harder on an
assignment to catch up from a day out of the office. You usually don’t think twice about taking a
day of vacation, so why should a day of training be any different?
Time is another often-heard excuse when training and development is mentioned. Have you
considered that training and development might actually give you more time? Often the
procedures, ideas, short cuts, and timesaving hints learned in training and development sessions
equal more time in the long run. Have you heard the old saying that you have to spend money to
make money? Well, in a sense, the same is true for training and development. You have to
devote some time to training and development to make you more productive in the long run.
Nature of Training and Development in banking sector
In simple words, training and development refers to the imparting of specific skills,
abilities, knowledge to an employee. A formal definition of training and development is
determined as follows:
“It is any attempt to improve current or future employee performance by increasing an
employee’s ability to perform through learning, usually by changing the employee’s attitude or
increasing his or her skills and knowledge.”
The need for training and development is determined by the employee’s performance
deficiency, computed as follows:
Training and development needs =
Standard performance – Actual performance
We can make a distinction among training, education and development. Such distinctions
enables us to acquire a better perspective about the meaning if the term training. Which refers to
the process of imparting specific skills, Education, on the other hand is confined theoretically
learning in classroom
To distinct more, the training is offered in case of operatives whereas development
programs are conducted for employees at higher levels. Education however is common to all the
employees.
Inputs in Training and Development in banking sector
Any training and development programme must contain inputs which enable the
participants to gain skills, learn theoretical concepts and help acquire vision to look into the
distant future. The inputs of training and development are as follows:
1) Skills
2) Education
3) Development
4) Ethics
5) Attitudinal Changes
6) Decision making and problem solving skills
1) Skills
Training is imparting skills to the employees. A worker needs skills to operate machines,
and use other equipments with least damage and scrap. This is basic skills without which the
operator will not function.
There is also a need of motor skills or psychomotor skills as they are refer to
performance of specific physical activities .These skills involve learning to move various parts of
their body in response to certain external and internal stimuli. Employees particularly like
supervisors and executives, need interpersonal skills mostly know as people skills. These skills
helps a person understand oneself and others better and act accordingly. Examples of
interpersonal skills include listening. Persuading and showing an understanding of others
feelings
2) Education
The purpose of education is to teach theoretical concepts and develop a sense of
reasoning and judgment. That any training and development programmers must contain an
element of education is well understood by the HR specialist.
In fact, sometimes, organizations depute or encourage employees to do courses on a part
time basis. Chief executive officers (CEO’s) are known to attend refresher course conducted in
many Business schools. The late Manu Cambria, CMD, Shaw Wallace, attended such a two
month programmers at the Harvard business school. Education is more important for managers
and executives than for lower-cadre workers.
3) Development
Another component of a training and development programmers is development which is
less skill – oriented but stress on knowledge. Knowledge about business environment,
management principles and techniques, human relations, specific industry analysis and the like is
useful for better management of a company.
Development programmers should help an employee to be a self-starter, build sense of
commitment, motivation, which should again helps him being self generating. It should make
their performance result oriented and help them in being more efficient and effective. It should
also help in making the employee sensitive towards the environment that is his work place and
outside. This programmers should keep the employee aware of him i.e. his potentials and his
limitations. Help him see himself as others see him and accept his self image as a prelude to
change. It helps teach an individual to communicate without filters, to see and feel points of view
different from their own. Also helps them understand the powers in their hands and thereby
develop leadership styles which inspire and motivate others. And finally helps install a zest for
excellence, a divine discontent, a nagging dissatisfaction with the status quo.
4) Ethics
There is a need for imparting greater ethical orientation to a training and development
programmers. There is no denial of the fact that ethics are largely ignored in businesses. They are
less seen and talked about in the personnel function this does not mean that the HR manager is
absolved if the responsibility. If the production, finance or marketing personnel indulge in
unethical practices the fault rest on the HR manager. It is his/her duty to enlighten all the
employees in the organization about the need for ethical behavior.
5) Attitudinal Changes
Attitudinal represents feelings and beliefs an individual towards others. Attitudes affect
motivation, satisfaction and job commitment. Negative attitudes needs to be converted into
positive attitudes. Changing negative attitudes is difficult because of
(1) Employees refuse to change
(2) They have prior commitments and
(3) Information needed to change attitudes may not be sufficient.
Attitude must be changed so that the employee feels committed to the organization and give
better performance.
6) Decision making and problem solving skills
Decision making and problem solving skill focus on methods and techniques for making
organizational decision and solve work related problems. Learning related to decision making
and problem solving skills seeks to improve trainee’s abilities to define and structure problems,
collect and analysis information, generate alternatives. Training of this type is typically provided
to potential managers, supervisors and professionals
Importance of Training and development for the banking sector
There are many benefits of Training and Development to the organization as well as
employee. We have categorized as under
1) Benefits for the organization
2) Benefits for the individual
3) Benefits for personnel and human relation, intra group and internal group relation
and policy implementation
1) Benefits for the organization
a) Improves communication between group and individuals.
b) Aid in orientation of new employee and those taking new job through transfer or
promotion.
c) Provides information on equal opportunities and affirmative action.
d) Provides information on other government laws and administration policies.
e) Improve interpersonal skills.
f) Makes organizational policies, rules and regulations viable.
g) Builds cohesiveness in group.
h) Provides a good climate for learning, growth and co ordination.
i) Makes the organization a better place to work and live.
2) Benefits for the individual
a) Helps and individual in making better decision and effective problem solving.
b) Through training and development, motivational variables of recognition
achievement, growth, responsibility and advancement are internalized and
operationalised.
c) Aid in encouraging and achieving self–development and self confidence.
d) Helps a person handle stress, tension, frustration and conflict.
e) Provides information for improving leadership, knowledge, communication skills and
attitudes.
f)Increases job satisfaction and recognition.
g) Moves a person towards personal goals while improving interactive skills.
h) Satisfies personal needs of a trainee.
i) Provides the trainee an avenue for growth in his or her future.
j) Develops a sense of learning.
k) Helps eliminate fear in attempting new task.
l) Helps a person improve his listening skill, speaking skills also with his writing skills.
3) Benefits for personnel and human relation, intra group and internal group relation and
policy implementation
a) Improves communication between group and individuals.
b) Aid in orientation of new employee and those taking new job through transfer or
promotion.
c) Provides information on equal opportunities and affirmative action.
d) Provides information on other government laws and administration policies.
e) Improve interpersonal skills.
f) Makes organizational policies, rules and regulations viable.
g) Builds cohesiveness in group.
h) Provides a good climate for learning, growth and co ordination.
i) Makes the organization a better place to work and live.
Training Process
The steps of Training Process are as under:
Organizational Objectives
and Strategies
Assessment of Training
Needs
Establishment of Training
Goals
Devising Training
Programmers
Implementation of
Training programmers’
Evaluation of Results
a) Organizational objectives and strategies
The first step in the training process is an organization in the assessment of its objectives
and strategies. What business are we in? At what level of quality do we wish to provide this
product or service? Where do we what to be in the future? Its only after answering these and
other related questions that the organization must assess the strength and weakness of its human
resources.
b) Needs assessment
Needs assessment diagnoses present problems and future challenge to be met through training and development. Needs assessment occurs at two levels i.e. group level and individual level, an individual obviously needs training when his or her performance falls short or standards that is when there is performance deficiency. Inadequate in performance may be due to lack of skills or knowledge or any other problem.
The following diagram explains performance deficiency
PerformanceDeficiency
Lack of skills other causes
Or knowledge
Training Non training measures
c) Training and development objectives
Once training needs are assessed, training and development goals must be established.
Without clearly-set goals, it is not possible to design a training and development programmers
and after it has been implemented, there will be no way of measuring its effectiveness. Goals
must be tangible, verifying and measurable. This is easy where skilled training is involved
d) Designing training and development program
Who are the trainees? Who are the trainers? What methods And techniques?
What is the what are the where to conduct level of training principles of learning the program
e) Conducting training activities
Where is the training going to be conducted and how?
At the job itself.
On site but not the job for example in a training room in the company.
Off site such as a university, college classroom hotel, etc.
f) Implementation of the training programmers
Program implementation involves actions on the following lines:
Deciding the location and organizing training and other facilities.
Scheduling the training programmers.
Conducting the programmers.
Monitoring the progress of the trainees.
g) Evaluation of the results
The last stage in the training and development process is the evaluation of the results.
Since huge sums of money are spent on training and development, how far the programme has
been useful must be judge/determined. Evaluation helps determine the results of the training and
development programme. In the practice, however organizations either overlook or lack facilities
for evaluation.
Importance of Developing a Role in Training in banking sector
Developing a national role in training is important for an employers' organization for several
reasons.
First, it enables the organization to contribute to the development of a country's human capital,
through its influence on education policies and systems and training by public training
institutions, to better serve business needs. It also enables it to influence employers in regard to
the need for them to invest more in training and employee development - which employers
should recognize as one key to their competitiveness in the future.
Second, it provides an important service to members, especially in industrial relations in respect
of which sources of training for employers in developing countries are few. Third, it is an
important source of income provided the organization can deliver relevant quality training.
Fourth, it compels its own staff to improve their knowledge without which they cannot offer
training to enterprises through their own staff. Fifth, the knowledge required for training
increases the quality of other services provided by the organization - policy lobbying, advisory
and representation services. Sixth, it contributes to better human relations at the enterprise level
and therefore to better enterprise performance, by matching corporate goals and people
management policies. Finally, it improves the overall image of the organization and invests it
with a degree of professionalism, which can lead to increased membership and influence. Many
entrepreneurs seem to view employee training and development as more optional than
essential...a viewpoint that can be costly to both short-term profits and long-term progress. The
primary reason training is considered optional by so many business owners is because it's viewed
more as an expense than an investment. This is completely understandable when you realize that
in many companies, training and development aren't focused on producing a targeted result for
the business. As a result, business owners frequently send their people to training courses that
seem right and sound good without knowing what to expect in return. But without measurable
results, it's almost impossible to view training as anything more than an expense.
Now contrast that approach to one where training's viewed as a capital investment with
thoughtful consideration as to how you're going to obtain an acceptable rate of return on your
investment. And a good place to start your "thoughtful consideration" is with a needs analysis.
As it relates to training and development, needs analysis is really an outcome analysis--what do
you want out of this training? Ask yourself, "What's going to change in my business or in the
behavior or performance of my employees as a result of this training that's going to help my
company?" Be forewarned: This exercise requires you to take time to think it through and focus
more on your processes than your products.
As you go through this analysis, consider the strengths and weaknesses in your company and try
to identify the deficiencies that, when corrected, represent a potential for upside gain in your
business. Common areas for improvement in many companies is helping supervisors better
manage for performance. Many people are promoted into managerial positions because they're
technically good at their jobs, but they aren't trained as managers to help their subordinates
achieve peak performance. Determining your training and development needs based on targeted
results is only the beginning. The next step is to establish a learning dynamic for your company.
In today's economy, if your business isn't learning, then you're going to fall behind. And a
business learns as its people learn. Your employees are the ones that produce, refine, protect,
deliver and manage your products or services every day, year in, year out. With the rapid pace
and international reach of the 21st century marketplace, continual learning is critical to your
business's continued success.
To create a learning culture in your business, begin by clearly communicating your expectation
that employees should take the steps necessary to hone their skills to stay on top of their
professions or fields of work. Make sure you support their efforts in this area by supplying the
resources they need to accomplish this goal. Second, communicate to your employees the
specific training needs and targeted results you've established as a result of your needs analysis.
Third, provide a sound introduction and orientation to your company's culture, including your
learning culture, to any new employees you hire. This orientation should introduce employees to
your company, and provide them with proper training in the successful procedures your
company's developed and learned over time.
Every successful training and development program also includes a component that addresses
your current and future leadership needs. At its core, this component must provide for the
systematic identification and development of your managers in terms of the leadership style that
drives your business and makes it unique and profitable. Have you spent time thoughtfully
examining the style of leadership that's most successful in your environment and that you want to
promote? What steps are you taking to develop those important leadership traits in your people?
Financial considerations related to training can be perplexing, but in most cases, the true
budgetary impact depends on how well you manage the first three components (needs analysis,
learning and leadership). If your training is targeted to specific business results, then you're more
likely to be happy with what you spend on training. But if the training budget isn't related to
specific outcomes, then money is more likely to be spent on courses that have no positive impact
on the company.
In many organizations, training budgets are solely a function of whether the company is enjoying
an economic upswing or enduring a downturn. In good times, companies tend to spend money on
training that's not significant to the organization, and in bad times, the pendulum swings to the
other extreme and training is eliminated altogether. In any economic environment, the training
expense should be determined by the targeted business results you want, not other budget-related
factors.
To help counter this tendency, sit down and assess your training and development needs once or
twice a year to identify your needs and brainstorm how to achieve your desired results
effectively and efficiently.
Your employees are your principle business asset. Invest in them thoughtfully and strategically,
and you'll reap rewards that pay off now and for years to come.
Methods of training in banking sector
A multitude of techniques are used to train employees. Training techniques represent the
medium of imparting skills and knowledge to employees. Training techniques are means
employed in the training methods. They are basically of two types.
1) Lectures
It is the verbal presentation of information by an instructor to a large audience. The
lecturer is presumed to possess knowledge about the subject. A virtue in this method is that it can
be used for large groups and hence the cost of training per employee is very low. However, this
method violates the principle of learning by practice. Also this type of communication is a one-
way communication and there is no feedback from the audience because in case of very large
groups it is difficult to have interactive sessions. Long lectures can also cause Boredom.
2) Audio Visuals
This is an extension of the lecture method. This method includes slides, OHPs, video
tapes and films. They can be used to provide a range of realistic examples of job conditions and
situations in the condensed period of time. It also improves the quality of presentation to a great
extent.
3) On- the – Job- Training
It is used primarily to teach workers how to do their present jobs. Majority of the
industrial training is on the job training. It is conducted at the work site and in the context of the
job. Often, it is informal, as when experienced worker shows a trainee how to perform tasks. In
this method, the focus of trainer’s focus is on making a good product and not on good training
technique. It has several steps; the trainee first receives an overview of the job, its purpose and
the desired outcomes. The trainer then demonstrates how the job is to be performed and to give
trainee a model to copy. And since a model is given to the trainee, the transferability to the job is
very high. Then the employee is allowed to mimic the trainer’s example. The trainee repeats
these jobs until the job is mastered.
4) Programmed Instruction (PI)
In this method, training is offered without the intervention of the trainer. Information is
provided to the employee in blocks, in form of books or through teaching machine. After going
through each block of material, the trainee goes through a test/ answers a question. Feedback in
the form of correct answers is provided after each response. Thus PI involves:
Presenting questions, facts, and problems to the learner.
Allowing the person to respond
Providing feedback on the accuracy of the answers
If the answers are correct, he proceeds to the next block or else, repeats the
same.
However it is an impersonal method and the scope of learning is less as compared to
other methods of training. Also the cost of preparing books, manuals and machinery is very high.
5) Computer Assisted Instruction (CAI)
This is an extension of the PI method. In this method, the learner’s response determines
the frequency and difficulty level of the next frame. This is possible thanks to the speed, memory
and the data manipulation capabilities of the computer.
6) Simulation
It is any equipment or technique that duplicates as nearly as the possible the actual
conditions encountered at the job. It is an attempt to create a realistic for decision-making. This
method is most widely used in Aeronautical Industry.
7) Vestibule Training
This method utilizes equipment which closely resembles the actual ones used in the job.
It is performed in a special area set aside for the purpose and not at the workplace. The emphasis
is placed on learning skills than on production. It is however difficult to duplicate pressures and
realities of actual situations. Even though the kind of tension or pressure may be the same but the
employee knows it is just a technique and not a real situation. Also the employees behave
differently in real situations than in simulations. Also additional investment is required for the
equipment.
8) Case study
It is a written description of an actual situation in the business, which provokes the reader
to think and make decisions/ suggestions. The trainees read the case, analyze it and develop
alternative solutions, select the best one and implement it. It is an ideal method to promote
decision making skills. They also provide transference to an extent. They allow participation
through discussion. This is the most effective method of developing problem solving skills.
The method /approach to analysis may not be given importance. Many a times only the
result at the end of the case may be considered and not the line of thinking to approach it. This is
a major disadvantage since case studies must primarily be used to influence or mend the attitude
or thinking of an individual.
9) Role Playing and Behavior Modeling
This method mainly focuses on emotional (human relation) issues than other ones. The
essences are on creating a real life situation and have trainees assumed parts of specific
personalities (mostly interchanged roles of boss and subordinate to create empathy for one
another). The consequence is better understanding of issues from the other’s point of view.
Concept of Behavior Modeling:
Fundamental psychological process by which new patterns of behavior can be
acquired and existing ones can be altered.
“Vicarious process” learning takes place not by own experience but by
observation or imagination of others’ action.
It is referred to as “copying”, “observational learning” or “imitation” implying
that it a behavior is learned or modified through observation of other’s
experiences.
This change may be videotaped and showed to the trainee and he can review
and critique it.
It also helps him see the negative consequences that result from not using the
behavior as recommended.
10) Sensitivity Training
It uses small number of trainees usually less than 12 in a group. They meet with a passive
trainer and get an insight into their own behavior and that of others. These meetings have no
agenda and take place away from the workplace. The discussions focus on why participants
behave the way they do and how others perceive them. The objective is to provide the
participants with increased awareness of their own behavior, the perception of others about them
and increased understanding of group process. Examples: Laboratory training, encounter groups.
Laboratory training is a form of group training primarily used to enhance interpersonal skills. It
can be used to develop desired behaviors for future job responsibilities. A trained professional
serves as a facilitator. However once the training is over employees get back to being the way
they are.
11) Apprenticeships and Coaching
It is involved learning from more experienced employee/s. This method may be
supplemented with other off-the-job methods for effectiveness. It is applied in cases of most craft
workers, carpenters, plumbers and mechanics. This approach uses high levels of participation
and facilitates transferability. Coaching is similar to apprenticeships. But it is always handled by
a supervisor and not by the HR department. The person being trained is called understudy. It is
very similar to on the job training method. But in that case, more stress is laid on productivity,
whereas here, the focus is on learning.
In this method skilled workforce is maintained – since the participation, feedback and job
transference is very high. Immediate returns can be expected from training – almost as soon as
the training is over the desired outcomes can be seen in the trainee.
Training & Evaluation in banking sector
Training
Improving business performance is a journey, not a destination. Business performance rises and
falls with the ebb and flow of human performances. HR professionals lead the search for ways to
enhance the effectiveness of employees in their jobs today and prepare them for tomorrow. Over
the years, training programmers have grown into corporate with these goals in mind. Training
programmers should enhance performance and enrich the contributions of the workforce. The
ultimate goal of training is to develop appropriate talent in the workforce internally.
In India, training as an activity has been going on as a distinct field with its own roles, structures
and budgets, but it is still young. This field is however; expanding fast but controversy seems to
envelop any attempts to find benefits commensurate with the escalating costs of training.
Training has made significant contributions to development of all kinds. Training is essential;
doubts arise over its contribution in practice. Complaints are growing over its ineffectiveness and
waste. The training apparatus and costs have multiplied but not its benefits. Dissatisfaction
persists and is growing at the working level where the benefits of training should show up most
clearly. This disillusionment shows in many ways – reluctance to send the most promising
people for training, inadequate use of personnel after training etc. With disillusionment mounting
in the midst of expansion, training has entered a dangerous phase in its development.
Training is neither a panacea for all ills nor is it a waste of time. What is required is an insight
into what training can or cannot do and skill in designing and carrying out training effectively
and economically.
The searchlight of inquiry may make the task and challenges stand out too starkly, too simply.
Using experience with training in India and other rapidly developing countries has this advantage
at similar risk. The contribution that training can make to development is needed acutely and
obviously. At the same time, the limited resources available in these countries make this
contribution hard to come by. These lines are sharply drawn; on the one hand, no promise can be
ignored; on the other, no waste is permissible.
Much of the training provided today proceeds as if knowledge and action were directly related.
This assumption is itself a striking illustration of the wide gulf that separates the two. On a
continuum with personal maturation and growth at one end and improvement in performance of
predetermined tasks at the other, education lies near the former, and training near the later.
Focusing training on skill in action makes the task wide and complex. Training embraces an
understanding of the complex processes by which various factors that make up a situation
interact.
For every training strategy, no matter which, the proper focus right from the very outset is on one
or more people – on-the-job-in-the-organization – this whole amalgam. Wherever the focus
moves during the training programmers, the starting point becomes the focus again at the end.
The difference lies in what people have learned that they now apply. That difference, in terms of
more effective behavior is the measure of the efficacy of training.
The training process is made up of three phases:
Phase 1: Pre-training. This may also be called the preparation phase. The process starts
with an understanding of the situation requiring more effective behavior. An organization’s
concerns before training lie mainly in four areas: Clarifying the precise objectives of training and
the use the organization expects to make of the participants after training; selection of suitable
participants; building favorable expectations and motivation in the participants prior to the
training; and planning for any changes that improved task performance will require in addition to
training.
Phase 2: Training. During the course of the training, participants focus their attention on the
new impressions that seem useful, stimulating and engaging. There is no guarantee that the
participants will in fact learn what they have chosen. But the main purpose remains: participants
explore in a training situation what interests them, and a training institution’s basic task is to
provide the necessary opportunities.
Having explored, participants try out some new behavior. If they find the new behavior useful,
they try it again, check it for effectiveness and satisfaction, try it repeatedly and improve it.
Finally, they incorporate this new facet into their habitual behavior in the training situation. If
they do not find it useful, they discard it, try some variant, or discontinue learning in this
direction. The intricate process of selection and testing is continuous and more or less conscious.
It is important that work organizations meanwhile prepare the conditions for improved
performance by their participants upon their return.
Phase 3: Post-training. This may be called the "follow up" phase. When training per se
concludes, the situation changes. When the participants return back to work from the training, a
process of adjustment begins for everyone involved. The newly learned skills undergo
modification to fit the work situation. Participants may find their organizations offering
encouragement to use the training and also support for continuing contact with the training
institution. On the other hand, they may step into a quagmire of negativity.
More effective behavior of people on the job in the organization is the primary objective of the
training process as a whole. In the simplest training process, improvement is a dependent
variable, and participants and organizations independent variables.
The training process has the following major objectives:
1) Improvement in Performance
Training will be an important aid to managers for developing themselves as well as their
subordinates. It is not a substitute for development on the job, which comes from doing,
experiencing, observing, giving and receiving feedback and coaching. Research has shown that
80% of a person’s development takes place on the job. However, training can contribute the vital
20% that makes the difference. Training can bring about an improvement in a person’s:
Knowledge
Skills
Attitude
Thereby raising his potential to perform better on the job.
2) Growth
Training is also directed towards developing people for higher levels of responsibility thereby
reducing the need for recruiting people from outside. This would have the effect of improving
the morale of the existing employees.
3) Organizational Effectiveness
In company training provides a means for bringing about organizational development. It can be
used for strengthening values, building teams, improving inter-group relations and quality of
work life. The ultimate objective of training in the long run is to improve the company’s
performance through people performing better.
Benefits of Training Evaluation in banking sector
Evaluation has three main purposes:
Feedback to help trainers understand the extent to which objectives are being met and the
effectiveness of particular learning activities – as an aid to continuous improvement
Control to make sure training policy and practice are aligned with organizational goals and
delivering cost-effective solutions to organizational issues
Intervention to raise awareness of key issues such as pre-course and post-course briefing and the
selection of delegates Evaluation is itself a learning process. Training which has been planned
and delivered is reflected on. Views on how to do it better are formulated and tested .The
outcome may be to:
Abandon the training
Redesign the training – new sequence, new methods, new content, new trainer
Redesign the preparation/pre-work – new briefing material, new pre-course work
Rethink the timing of the training – earlier or later in people’s career, earlier or later
in the training programmers, earlier or later in the company calendar
Leave well alone
The following are the clear benefits of evaluation:
Improved quality of training activities
Improved ability of the trainers to relate inputs to output
Better discrimination of training activities between those that are worthy of support
and those that should be dropped
Better integration of training offered and on the job development
Better co-operation between trainers and line-managers in the development of staff
Evidence of the contribution that training and development activities are making to
the organization
Closer integration of training aims and organizational objectives
The Way Ahead
The development of learning organizations, working to harness the brainpower, knowledge and
experience of their people, reflects the fundamental importance of training and learning for those
organizations that hope to prosper in the new millennium. The rend towards a more
"empowering" style of management and an increasing emphasis on self-development have
combined to bring about a move away from didactic instruction towards coaching and
facilitation and away from "trainer" towards "performance improvement consultant".
In the coming future, the following trends are likely to be seen:
Increased use of virtual reality, the internet and multi-media training
Emphasis on cross-cultural development
Remote learning to reflect changing patterns of work
The Training Role
Internal Training
The role of an employers' organization in training has to be viewed from different perspectives.
First and foremost it must be viewed from an "internal" point of view i.e. the training and
development of its own staff. This is essential to the effectiveness of the organization's training
services as well as to the other services it provides members, all of which fall within the
following:
Influencing the legal and policy environment needed for business growth and
development
Direct services to members
This requires that the staff be trained in the areas of the organization's services and core
competencies which may include areas such as:
Industrial relations
Human resource management
Occupational safety and health
Information analysis and research for:
Influencing the policy environment
Transferring knowledge to members
Undertaking wage and other surveys
Training Services
This objective of training (i.e. to make its other services more effective) involves mostly the
acquisition of knowledge needed for staff to perform their functions. This is an important pre-
requisite to staff undertaking the second role of an employers' organization in training, which is
to provide training to members (and sometimes to nonmembers) in areas in which they expect
services. But unlike in the case of the first objective of training earlier referred to, this second
role or objective requires not only knowledge in the areas of training, but also training skills i.e.
in training techniques or methodologies. If staff do not develop training skills
They will be able to transfer knowledge
But not the skills to apply the knowledge to particular situations which arise in
enterprises (productivity is increasingly the application of knowledge).
Examples include negotiation, workplace mechanisms to improve workplace relations and
human resource management policies and practices such as:
Recruitment, selection, induction
Performance appraisal
Leadership and motivation
Employee retention
Wage and salary determination
The main objectives of this second training role (to provide training to members) are:
To provide members with the means to address labor - related problems and issues
To instill in enterprise managers the skills needed to improve their management of people
Where enterprises have a training department, to train their personnel.
It follows that the staff of employers' organizations are not themselves practitioners in people
management. They are trainers of those engaged in managing people and, occasionally of other
trainers.
Influencing National Policies and Programmers
The third role is one to be discharged at the national level, and involves influencing national
educational and skills training policies and schemes. This could be affected in a variety of ways:
Through representation on the policy boards of national training institutions.
Identifying employers' education and skills needs and providing feed back from
employers. Employers' organizations could form executive training committees within
the organization such as the Education Committee in the Japan Federation of Employers'
Associations, the Industrial Education and Training Committee in the Korean Employers'
Federation and the Committee on Manpower and Development in the Singapore National
Employers' Federation. At the initiative of the New Zealand Employers' Federation the
School-Industry Links Development Board was established in 1990 to strengthen the
relationship between secondary schools and business. Unique pilot programmers were
commenced in 1992 on "Teacher Placement in Industry" and "Management Course for
Secondary School Principals".
Influencing government, education and training authorities to correct inappropriate
policies and to commence preparing for the future education and training needs if HRD
policies are to have impact.
Initiating or promoting teacher education programmers to impart to them knowledge
about the role of business in society, the environment needed for business development
etc.
Promoting closer links between employers and educational and training institutions.
Influencing course content e.g. management course contents to include more human
relations management subjects, and even basic management in occupational safety and
health and environmental management.
Other Roles
A fourth role is for an employers' organization to raise awareness among employers of the need
for increased investment in the development of human capital as an essential condition for
achieving competiveness.
A fifth role is in the training of personnel or human resource managers, given the fact that their
role still tends to be downgraded relative to other management functions such as finance,
marketing and production. This role could also be undertaken through training support given to
professional bodies like an institute of personnel management.
A sixth role for an employers' organization is the provision of advisory services to member
companies by
Assisting trainers in enterprises to develop or improve their in-house training
programmers, especially in the areas of the employers' organization's expertise
Upgrading the knowledge of company trainers
Maintaining a directory of relevant training programmers/courses
Seventh, an employers' organization should be able to influence the provision of training
incentives to be offered to employers, through the tax system or training levies. Numerous
examples in countries abound which can provide useful ideas to employers' organizations.
Eight, an employers' organization could develop training material to be used by enterprises for
in-house training.
Understanding Employee Drives and Motivations - The First Step
towards Motivation at Work
However large or small a company or business is, it is employees at all levels that can make or
break it. This holds true not only for the people we hire on a regular basis, but also for temporary
and contracted workers. It is as important to research and study the needs, drives, and
expectations of people we hire or employ, and aim at responding to and satisfying those, as it is
with regard to customers.
In actual fact, considering the role each "employee" plays in a company's success, analyzing and
planning an adequate response to employees' motivations deserves first place in the order of
business.
Before going any further, let us shift our approach from grouping people under the generic
category of "employee" to individual human beings and term them as "hired workers" or
"working partners". This is what they are. We must acknowledge them as human beings with
individual needs, drives, characteristics, personalities, and acknowledge their contribution to the
business success.
Though each person has specific needs, drives, aspirations, and capabilities, at varying degrees
of intensity, people's basic needs are the same, as illustrated by Abraham Maslow in the
following model:
Self-
Actualization
Ego
Social Needs
Safety Needs
Physiological Needs
MASLOW'S HIERARCHY OF NEEDS
Maslow explains the Hierarchy of Needs as applied to workers roughly as follows:
Physiological Needs
Basic physical needs: the ability to acquire food, shelter, clothing and other basics to
survive
Safety Needs: a safe and non-threatening work environment, job security, safe equipment and
installations
Social Needs: contact and friendship with fellow-workers, social activities and opportunities
Ego: recognition, acknowledgment, rewards
Self-Actualization: realizing one's dreams and potential, reaching the heights of one's gifts
and talents.
It is only when these needs are met that workers are morally, emotionally, and even physically
ready to satisfy the needs of the employer and the customers.
Worker motivation must also be viewed from two perspectives:
1. Inner drives
2. Outer (external) motivators.
A person's inner drives push and propel him/her towards an employer, a particular job, career,
line of study, or other activity (such as travel or recreation). It is these drives that Maslow
delineates in his hierarchy of needs, and which we must understand and internalize, use as
guidelines in our efforts to help employees feel motivated.
The outer (external) motivators are the mirror image the employer or outside world offers in
response to the inner drives. In order to attract the "cream of the crop" of available workers, same
as in his/her dealings with customers, the employer not only tries to satisfy these basic needs, but
to exceed them - taking into consideration additional extraordinary needs individual workers
have.
Most workers need to:
1. Earn wages that will enable them to pay for basic necessities and additional luxuries such
as the purchase of a home, or travel
2. Save for and enjoy old age security benefits
3. Have medical and other insurance coverage
4. Acquire friends at work
5. Win recognition
6. Be acknowledged and rewarded for special efforts and contributions
7. Be able to advance in life and career-wise
8. Have opportunities for self-development
9. Improve their skills, knowledge, and know-how
10. Demonstrate and use special gifts and abilities
11. Realize their ideals.
The employer responds to those needs by offering and providing:
1. Employment
2. Adequate pay
3. Assistance to workers for their special needs (such as child care arrangements,
transportation, flexible work schedules)
4. Job security (to the degree possible)
5. Clear company policies
6. Clear and organized work procedures
7. A stable, just and fair work environment
8. A safe work environment
9. Medical coverage and other benefits
10. An atmosphere of teamwork and cooperation
11. Social activities
12. Reward and recognition programs
13. Incentive programs
14. Open lines of communication (formal and informal)
15. Systematic feedback
16. Training and development programs
17. Opportunities for promotion
18. Company/ business information
19. Information on customer feedback
20. Sharing of company goals and objectives a
21. Information on the market situation and industry
22. Future expectations
23. Plans for the future
24. Guidance and mentoring.
It is important that the employer discover other extraordinary needs applicants have before hiring
them and know beforehand whether he/she can satisfy those needs or not. An employee may
have:
Family responsibilities and be unable to work shifts, overtime, or weekends
Heavy financial responsibilities which he/she can meet only by working at two jobs,
leading to exhaustion, "sick leave", and deficient work performance
A desperate financial need for additional overtime and weekend remuneration
Premature expectations of swift promotions.
Some other needs the employer can expect, for which company policies should be planned
accordingly:
If the company is in a remote location, all employees will have a need for more social
activities
Many single people look for dates and spouses at work
Some women may not be ready to work late shifts unless the employer provides
transportation back home
Some workers may have a problem with drug or alcohol abuse.
In addition to needs and drives, adult workers have expectations from their employer - they
expect:
A knowledgeable, experienced, expert employer
Clear and fair policies, procedures, and employment practices
Business integrity
Clear job descriptions
Two-way communications
Effective management and supervision
Positive discipline
Good company repute
Good customer relations
Company survival
Opportunities for personal growth
Company growth
A share in the company's success.
Business owners and managers are under constant scrutiny by the people they hire. Adult
workers care beyond the salary - they care to know to whom they entrust their fate, reputation,
and security. They consider their work as a major factor that shapes their lives and the lives of
those dear to them. Once they feel confident that the employer and their place of work is what
they wished for and expected, they are ready to contribute above and beyond "the call of duty".
Most of these needs, expectations and aspirations are unexpressed - it is up to the employer to
develop a good system of company communications, employee relations, training and
development that will lead to an environment of openness, cooperation, teamwork, and
motivation that will benefit all the parties involved.
Cross-Training as a motivational and problem-solving Technique
Many managers, including human resources directors, mistakenly believe that employee
motivation can be won through monetary rewards or other perks. They learn soon enough that
such perks are taken for granted and that money is not the key to employee motivation. A
professional and unified management, in a good work environment, is the basis on which to
build employee motivation.
While high employee turnover reflects on low morale and lack of motivation, when seen from
another angle, the absence of turnover quickly results in de-motivation since the possibility of
motion and forward-motion is taken away from employees. It is against human nature to remain
static, performing the same duties day in, day out, without expectations of change in routine or
opportunities for advancement.
Following a reading or lecture on the subject, managers sometimes implement "job enrichment"
in a misguided manner, adding unrewarded responsibilities on the shoulders of their supervisors
and employees. This results in a feeling of exploitation and has the reverse of the intended
effect.
An effective training technique which results in motivation is cross-training, when implemented
horizontally, upward and downward. Department heads, assistants and employees can cross-
train in different departments or within the department itself. With background support,
employees can have one day training in the role of department head ("King for the Day"). When
a General Manager is away, department heads can take roles replacing him, which is a form of
cross-training.
Cross-training should be carefully planned and presented as a learning opportunity. It should be
incorporated in a hotel's master yearly training plan, covering all positions and departments. It
should begin with supervisory level and filter down to entry-level positions. Housekeeping
should cross-train in Front Office and vice-versa; Front Office in Marketing, Sales, Public
Relations, Food & Beverage, Banquets, Security; Marketing & Sales in Front Office, Food &
Beverage, Purchasing; Food & Beverage Service in the Culinary department and vice versa;
Human Resources in different departments and vice versa.
This technique achieves the following objectives:
Prevents stagnation
Offers a learning and professional development opportunity
Rejuvenates all departments
Improves understanding of the different departments and the hotel as a whole
Leads to better coordination and teamwork
Erases differences, enmity and unhealthy competition
Increases knowledge, know-how, skills and work performance
Improves overall motivation
Leads to the sharing of organizational goals and objectives.
Sending people to work in another department at a moment's notice is not what cross-training is
about. This has to be an effective planned process. Employees must "buy" into the idea, be
encouraged to give feedback and make suggestions for improvement. They become "partners".
Departmental communications meetings can be used to share lessons learned. When employees
think "the grass is greener on the other side of the lawn" they soon realize their mistake after
exposure to other departments. They return to their job with a better attitude.
Cross-training can also be used to "shake up" supervisors or employees who have lapsed into
poor performance. Upon being moved to a different position or department, albeit temporarily,
they hear "warning bells", shape up and usually return to their positions as exemplary
performers.
Depending on the budget at hand and the objectives to be achieved, the time for cross-training
can vary from one day to a week or more. Details must be coordinated with the "receiving"
department head. The trainee is incorporated within the department's activities for the duration of
the cross-training (briefings, meetings, or obligations).
A more sophisticated form of cross-training is job rotation, which usually involves extended
periods (from one month to six months). With job rotation, the employee's role is of a different
nature. He is not considered as trainee, but is responsible over certain job functions, for which
he has to prove himself.
Both cross-training and job rotation create a team of workers who are more knowledgeable, can
easily replace each other when needed and who gain new confidence regarding their professional
expertise. These two techniques lead to great motivation throughout the company.
Unionized properties face some difficulty in implementing such techniques due to the rigidity of
Union policies and labor agreements. It is up to management to win over Unions on this concept
and convince them of the benefits to employees' careers. Union representatives can be made to
understand that company-wide cross-training involves substantial investment in time, effort and
payroll. The benefits, however, are enjoyed by the three main stakeholders: employees,
management and guests. Employees enjoy the rewards of added know-how, skills, career
opportunities and future security due to business success.
Developing the Organization's Training Function
Pre-requisites
There are certain prerequisites essential to undertaking a training role in relation to members.
Training may be affected in three ways
By the employers' organization's own staff
By external persons or institutions the employers' organization may contract with to
conduct training
By a combination of both the above methods, this would usually be the most practical
since it is unrealistic to expect employers’ organizations to develop the level of skills
needed in all the areas of training.
Even in courses conducted by the organization trainers or resource persons can be used for
selected subjects to enrich the programmers.
Where training is conducted by the staff of the employers' organization it follows that it must
have a comparative advantage in the subject matter of the training. In order to have that
advantage the staff should
Have the requisite knowledge in the subject matter
Be trained as trainers, although this is not critical in all cases. For instance, conducting
courses on the application of the labor laws requires knowledge of the subject matter, and
skills in training may not be particularly critical though undoubtedly useful.
Be supported by an up to date information and research base.
The above mentioned pre-requisites underline the two types of training an employers'
organization might undertake. The first is the transference of information and knowledge needed
by enterprises to make decisions in labor related areas. This requires the first and third pre-
requisites referred to. However, in order to have an impact on enterprises in the management of
people, the training needs to go beyond knowledge-transference and demonstrate how to
translate the relevant knowledge into practice. This involves not only a sound information and
research base and staff with the requisite knowledge, but also staff with training skills.
Identifying Areas of Training Specialization
Employers' organizations do not usually offer training in all areas of management (e.g. general
management, finance, and marketing) because
These are specialized areas requiring knowledge in subjects outside the mandate of an
employers' organization
Such training is provided by other institutions like business schools and polytechnics
which specially cater to these training needs.
However, in some areas training undertaken by employers' organizations and other institutions
overlap. An example is negotiation skills on which business education institutions in some
countries have highly effective programmers. Another is human resource management.
Therefore it is important for employers' organizations to develop an expertise in training in
industrial relations (laws, workplace labor relations practices, wages, and negotiation). It is a
subject in which it can develop a comparative advantage, especially since in many countries such
training is seldom offered by other institutions. Even if other institutions do, they may lack the
practical experience employers' organizations develop if they provide direct services to members.
An increasingly important target group is the small enterprise sector which, unlike the large scale
sector, usually lacks a human resource manager or a training policy and in house training
facilities. A special needs assessment may have to be conducted in this sector as its needs tend to
differ from those of large and medium scale enterprises. The ILO has developed the Improve
Your Business (IYB) programmers which are a system of inter-related training packages and
supporting materials for providing owners and managers of small enterprises with training in
basic business management skills.
Establishing Training Priorities
The employers' organization should establish a priority table in respect of the areas in which it
wishes to
Itself provide the training
Act only in a subsidiary capacity by, for instance, collaborating with external institutions
or individuals.
Provide training material
Some of the areas in which an employers' organization can undertake training
are:
a. Industrial Relations and Labor Law . This should be a priority as it is the labor
relations role which, more than any other, distinguishes an employers' organization from
other employer bodies.
b. Personnel and Human Resource Management . Training in this area helps to
strengthen personal departments and human resource management functions. Since one
of the main objectives of HRM is to integrate it with the functions of line managers,
HRM training should be made available to all enterprise managers. However, training in
this field may require linking up with institutions which are qualified in this regard, as it
is difficult to build a comparative advantage without external assistance.
c. Negotiation and negotiation skills . This is important not only for the conduct of
collective bargaining but also for enterprise managers in their frequent interactions with
their employees and other enterprises.
d. Safety and health . An employers' organization could develop a limited role, such as
interpreting relevant laws and training safety committees in enterprises.
e. Productivity . Here a limited role is possible, largely through training to achieve sound
industrial relations and in HRM practices which promote productivity improvement.
Productivity bargaining and performance and skills based pay systems are a part of an
employers' organization's mandate directly linked to productivity.
f. Supervisory training . This often neglected area of training is an important means of
improving workplace labor relations and productivity. The ILO has developed a
supervisory training module which has been found useful by enterprises.
g. Cross-cultural management training . In the context of increasing investment in
countries from both within and outside the region and the apparent proliferation of
disputes flowing from cross-cultural "mismanagement", there is scope for the
development of training programmers for foreign personnel designed to acquaint them
with local practices and cultural factors relevant to managing local employees.
Increasingly, local employees also need to adjust to the management requirements and
styles of foreign companies. Strangely, this has been a much neglected area of training.
However, it requires quite a mastery of local systems, practices and culture.
Training should not take the form of only collective training programmers i.e. for personnel from
several different enterprises. Considerable impact can be achieved through the design and
conduct of training programmers for particular enterprises at plant level as it facilitates
addressing a particular enterprise's needs. The latter type of programmers also has a reasonable
chance of attracting senior managers who are in a position to influence the company's policies.
Equipping the Organization for Training
The organization should equip itself to perform a training role. Among other things, this involves
the followings:
Analyzing the organization's strengths and weaknesses in training in the light of the needs
assessment surveys and identification of the areas of training.
Training the staff in training skills
Where relevant, studying the management of the training function of employers'
organizations which have developed an excellence in training
Improving the organization's information/research/knowledge base
Developing training courses and materials
Where necessary entering into arrangements with outside individuals or institutions to
design and/or conduct training programmers
Appointing a training manager, or at least a person to plan and coordinate the training
Acquisition of the training equipment needed.
As a brief review of terms, training involves an expert working with learners to transfer to them
certain areas of knowledge or skills to improve in their current jobs. Development is a broad,
ongoing multi-faceted set of activities (training activities among them) to bring someone or an
organization up to another threshold of performance, often to perform some job or new role in
the future.
Topics of Employee Training
1) Corporate ethics: This covers the value of good manners, courtesy, consideration, personal
décor and good rapport. It also shows why and how to discourage gossip, controversies, personal
work at office, rush jobs etc.
2) Communications: The increasing diversity of today's workforce brings a wide variety of
languages and customs. Right from the way the receptionist handles a call to how the CEO deals
with a customer gives a glimpse of the image of an organization. Such training encompasses
oral, written and presentation skills. It stresses the importance of communication being clear,
concise, concrete and colorful.
3) Career and life planning: A primarily employee-oriented training objective u undertaken
to help employees plan for their lives, career, retirement, redundancy etc. Such training imparts
the values of life skills that employees need under different and difficult circumstances.
4) Computer skills: Computer skills are becoming a necessity for conducting administrative
and office tasks.
5) Customer service: Increased competition in today's global marketplace makes it critical
that employees understand and meet the needs of customers.
6) Diversity: Diversity training usually includes explanation about how people have different
perspectives and views, and includes techniques to value diversity
7) Staff management and team building: Such training shows the importance and
benefits of good management and how everyone can achieve more through teamwork.
8) Stress management: Stress is an individual’s response to threats and challenges in the
environment. Manifested physiologically and physically, it may occur due to role conflict, role
ambiguity, role incompatibility, role overload or role under load. Stress management techniques
are covered under this objective.
9) Time management: Time management skills covered here showcase the importance of
being specific, delegation and prioritization. They also show how to set measurable, attainable,
relevant and time-bound goals.
10) Human relations: The increased stresses of today's workplace can include
misunderstandings and conflict. Training can people to get along in the workplace. It also
includes interpersonal relationship skills Communication is a two-way exercise and this
objective covers the importance of listening, concentrating, showing empathy and self-
awareness.
11) Quality initiatives: Initiatives such as Total Quality Management, Quality Circles,
benchmarking, etc., require basic training about quality concepts, guidelines and standards for
quality, etc.
12) Safety: Safety training is critical where working with heavy equipment, hazardous
chemicals, repetitive activities, etc., but can also be useful with practical advice for avoiding
assaults, etc.
13) Sexual harassment: Sexual harassment training usually includes careful description of
the organization's policies about sexual harassment, especially about what are inappropriate
behaviors.
14) Memory skills: This objective highlights techniques for better reception, retention and
recall through audio and visual learning techniques. It helps to improve skills by employing all
senses, associating and following systematic review plans.
15) Special skills: Besides the above, organizations also impart special job-related skills.
These may include technology training, report writing, technical training, quality assessments
etc.
An organization may choose to impart training in any or many of the objectives mentioned
above. But before one invests it is important to choose a trainer who is good and capable of
making a positive difference with his or her training methodologies. Also organizational training
needs to be undertaken keeping the mission and the vision statement of the organization in view.
Benefits from Employee Training and Development
Regardless of the size or type of an industry or business, training can have a measurable
impact on performance and the bottom line.
Research shows that productivity increases while training takes place. Staffs who receive
formal training can be 230 per cent more productive than untrained colleagues who are
working in the same role. Staying competitive is the key to sustainability. Training your staff,
keeping them motivated and up-to-date with industry trends and new technologies is essential
to achieving that goal.
Staff benefit too, learning new skills and becoming a valued asset in any organization.
Training brings direct benefits to business and can be calculated as a return on investment.
High labor productivity increases business output and can open a greater share of the market
or expand it by improving products, services and reputations.
Successful training is focused on supporting your business objectives.
Staff retention
Training increases staff retention which is a significant cost saving, as the loss of one
competent person can be the equivalent of one year's pay and benefits.
In some companies, training programs have reduced staff turnover by 70 per cent and led to a
return on investment of 7,000 per cent.
Improved quality and productivity
Training that meets both staff and employer needs can increase the quality and flexibility of a
business’s services by fostering:
Accuracy and efficiency
Good work safety practices
Better customer service.
Most businesses provide on-the-job training, particularly during induction. Ongoing training
almost always shows a positive return on investment.
The flow-on effect
The benefits of training in one area can flow through to all levels of an organization. Over
time, training will boost the bottom line and reduce costs by decreasing:
Wasted time and materials
Maintenance costs of machinery and equipment
Workplace accidents, leading to lower insurance premiums
Recruitment costs through the internal promotion of skilled staff
Absenteeism.
Staying competitive
Businesses must continually change their work practices and infrastructure to stay
competitive in a global market. Training staff to manage the implementation of new
technology, work practices and business strategies can also act as a benchmark for future
recruitment and quality assurance practices.
As well as impacting on business profit margins, training can improve:
Staff morale and satisfaction
'Soft skills' such as inter-staff communication and leadership
Time management
Customer satisfaction
There are numerous sources of on-line information about training and development. Several of
these sites (they're listed later on in this library) suggest reasons for supervisors to conduct
training among employees. These reasons include:
1. Increased job satisfaction and morale among employees
2. Increased employee motivation
3. Increased efficiencies in processes, resulting in financial gain
4. Increased capacity to adopt new technologies and methods
5. Increased innovation in strategies and products
6. Reduced employee turnover
7. Enhanced company image, e.g., conducting ethics training (not a good reason for ethics
training!)
8. Risk management, e.g., training about sexual harassment, diversity training
Companies that have a healthy training culture report the following benefits:
Improved quality
Increased productivity
Greater flexibility and responsiveness to change
Reduced insurance premiums
Less wastage
Reduced maintenance and repair costs
Greater commitment from staff
Higher staff retention rate
Improved morale.
Perhaps the most important benefit of a healthy training culture is that the skills of your staff are
formally recognized and that your employees feel that their contribution to the company is
