The recent instance of economic downturn once again highlighted the need to raise the level of competency, and for that matter, appropriate training of the employees to meet the demand of their respective industries have become an extremely important issue to the employers. There is not much to oppose the idea that proper training can develop the employee performance, which would reflect in the state of overall functioning of the organization and finally in the enhanced amount of benefit for the organization.
Even the established managers also hold the same view. The Hotel Monticello’s General Manager Rob Suter is one of many such managers who finds that training empowers employees and adds value to the organization as a whole (How, 2008). However, there should be a clear concept about how such benefit can be garnered out of training. In general, imparting appropriate training all throughout the year is a specialized job – which can even be seen as the task of developing human capital through managing them.
Therefore, this study reviews the relevant literature on employee training and how that can benefit both employees and organisations.
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2. 1. Underpinned Benefits of Employee Training Carl Duncker (2006) underpins five business benefits of employee training that goes like below: 1. Impact on bottom line: Duncker refers to the research observations that effective training can raise employee productivity to a whopping 230 percent. 2. Staff retention: Training increases staff retention, which saves company expenditure on many accounts, like loss of management time or re-investing on training, etc.
Here too the research observes that training programmes have reduced staff turnover in some companies by 70 percent and led to an incredible return on investment of 7,000 percent! 3. Improved quality and productivity: Carl underpins three key drivers of business that can be sharpened through training, which are a. Accuracy and efficiency b. Good work safety practices c. Great customer service. 4. The flow-on effect: Carl finds that training flows through all levels of the organization and accordingly it reduces the costs by decreasing a. Wasted time and materials
b. Mantenance costs of machinery and equipment c. Workplace accidents, leading to lower insurance premiums d. Recruitment costs through the internal promotion of skilled staff e. Absenteeism. 5. Remaining competitive: Carl points out that businesses change continuously and it is training that helps the companies to match with changes in strategies or technologies. Carl’s views are supported by various research studies. For example a study conducted in 2003 showed that 41% of employees switch jobs on the ground of poor training (Training, 2008).