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Employee Training and Development

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Business Studies

In the current market environment, things change quickly. Technology, globalization, and other related factors are the catalysts for these rapid changes. Businesses need to be aware of all such changes, and they should be prepared to deal with them effectively. Companies can be well-prepared for such scenarios by investing in the training and development of their employees. Let's find out how businesses can do this, and why they might want to!

Understanding employee training and development

We are currently witnessing rapid changes in market dynamics, and these changes have brought the topic of training and development to the forefront. The skills and knowledge related to many industries are quickly becoming obsolete.

Innovations, as well as new skills and techniques, are being used in all industries. How can businesses match the growing need to acquire new skills and techniques? That's right, the answer lies with employee training and development.

Employee training and development is a process through which employees can acquire new skills and knowledge to improve their job performances.

A business might lose its market share to competitors without a strong focus on the training and development of its employees. It is important to have workers with knowledge and expertise that are capable of meeting the requirements of the industry.

The process of training and development for employees

There is a systemic process by which employee training and development is conducted. Figure 1 below shows how the whole process is divided into five steps. Let's take a look:

Need identification – In this step, the need for training is identified by analyzing the skills and the knowledge required for operational tasks. The company examines its overall objectives, requirements of the job roles, and the performance of employees. If they find a gap between the required skills and the actual skills of the employees, they will decide to start the training program.

Set objectives – At this stage, training objectives are set based on the analysis conducted in the first stage. This step will ultimately set the direction for the training program and what aims a company expects to achieve from it.

Design program – Key decisions about the program are taken in this stage, from type of trainer best suited to the program to the right methodologies. Additionally, employees and key areas are selected for the program.

Implement – The training plan is implemented while bearing in mind the objectives of the program and the training methods used to produce optimal results.

Evaluate – Once the training program is finished, it is evaluated to determine whether or not the desired objectives were met. Feedback from the participants is taken, which helps in examining the efficacy of the program.

Employee Training and Development, The process of employee training and development, StudySmarterFigure 1. The process of training & development, StudySmarter

The types of employee training

There are three main types of training programs that are used by companies to train and develop the workforce:

Induction training – This type of training is given when new employees join the company. The purpose is to make them familiar with the company and their job roles. Important information is given to employees, which will help them transition into their jobs with ease. They are introduced to all the departments within the company. They also get to meet their coworkers. The training helps them integrate with the culture of the company. It is one of the best ways to prepare new employees for their roles in the company.

On-the-job training – This is a type of training in which employees are trained during their time on the clock in the workplace environment. There are many methods of on-the-job training. Employees could be asked to observe their senior colleagues to better understand their roles and the requirements of the job.

This method is also known as work shadowing. Conventional training sessions and computer-based training methods may also be used as part of the shadowing. This is a cost-effective and customizable training method, which means specific training needs can be fulfilled without spending huge amounts of money.

Off-the-job training – This type of training is done outside the workplace. Employees are usually asked to attend a seminar or course or complete a certification, at the company’s expense. These trainings would ideally equip employees with new ideas and knowledge. They could also be seen as incentives for employees to work harder, as money is being spent on their training. The issue with this method is that it is time- and cost-intensive.

Employee Training and Development, Example of a training session, StudySmarterA professional trainer conducting a training session, Wikimedia Commons

Advantages of employee training and development

The effective implementation of employee training and development programs can be advantageous to companies. Some of the major advantages are:

Increased productivity – The training and development of employees enhance their job performance as they acquire new skills and knowledge. They can get more tasks done in less time, leading to increased productivity. New training also enables employees to adapt to technological changes, which ultimately increases productivity.

Increased motivation – Training enables employees to do their jobs effectively, which may increase job satisfaction. Satisfied employees become more motivated to work, as they feel more valued in the workplace.

Higher rate of employee retention – Companies spend their financial and non-financial resources to train their employees. This might result in more loyal employees. After training, workers can take on more challenging roles and get promoted in the process. All these factors could lead to a higher rate of employee retention.

Quality production – Trained employees are more equipped to carry out production effectively. They are less likely to make errors during production. These workers have the skills and knowledge to oversee the production process without compromising quality.

Improved customer service – Through training, employees become more well-informed about the product and the needs of customers. This means they can handle customer queries and complaints better, resulting in improvements in the overall customer experience.

Ability to embrace technology changes When firms introduce new technology to their operations and processes it is important to effectively train all employees on how to use it. Training could reduce their resistance to change and increase their willingness to adapt to new technology.

Examples of employee training and development

There are many examples of employee training and development programs implemented by the companies. Some examples are discussed below.

Amazon

Over the years, Amazon has launched many training and development programs for its employees. In 2012, it launched the 'career choice' program. Through this program, employees could get up to $12,000 for certification or associate degrees.

In 2019, it announced to spend over $700 million on employee training programs. Amazon gave opportunities for non-technical employees to gain technical knowledge and expertise. These programs have allowed Amazon to maintain a loyal, motivated, and skilled workforce. These employees have contributed to the success of the company.

American Telephone and Telegraph Company (AT&T)

The company gives a wide range of training and development opportunities to its employees. It assists its employees in paying college tuition fees, which enables them to get degrees at affordable costs. It also has effective training and development programs through which employees get many opportunities to learn new skills and improve. At AT&T university, employees have the chance to complete training programs in key business fields.

The skills and knowledge in businesses are frequently becoming out of date. New skills and methods are being used constantly. For businesses to remain competitive, they must shift their focus to the training and development of employees. These programs not only ensure a skilled workforce but improve the efficiency of business operations overall.

Employee Training and Development - Key takeaways

  • Technology, globalization, and other related factors are the catalysts for the rapid changes in the market.
  • The skills and knowledge relating to every industry are fast becoming obsolete. Innovations, as well as new skills and techniques, are being used in the industries.
  • Employee training and development is a process through which employees can acquire new skills and knowledge to improve their job performance.
  • Needs identification, setting objectives, designing programs, implementing, and evaluation are the five steps of the training and development process.
  • Induction training, on-the-job training, and off-the-job training are the three types of employee training.
  • Each of the three types of employee training comes with its own set of advantages.
  • Increased productivity, increased motivation, higher rate of employee retention, quality production, ability to adapt to new technology, and improved customer service are the advantages of the training and development of employees.

Employee Training and Development

Employee training and development is a process through which employees can acquire new skills and knowledge to improve their job performances. 

Induction training, on-the-job training, and off-the-job training 

It is important because it gives benefits such as increased productivity, increased motivation, higher rate of employee retention, quality production, and improved customer service.

Need identification, set objectives, design program, implement, and evaluate.

Training and development programs used by companies like Amazon and AT&T are examples. 

Final Employee Training and Development Quiz

Question

Which factors are catalysts for rapid changes in the market?

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Answer

Technology, globalization.

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Question

Define employee training and development.

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Answer

Employee training and development is a process through which employees can acquire new skills and knowledge to improve their job performances. 

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Question

How many stages are there in process of training and development?


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Answer

Five

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Question

List five stages of training and development. 

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Answer

Need identification, set objectives, design program, implement, and evaluate.

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Question

What is the first stage of the training and development process? 

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Answer

Need identification

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Question

What is the second stage of the training and development process? 


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Answer

Set objectives

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Question

What is the third stage of the training and development process? 


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Answer

Design program

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What is the fourth stage of the training and development process? 


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Implement

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Question

What is the fifth stage of the training and development process? 

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Answer

Evaluate

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Question

How many major types of employee training are there?

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Answer

Three

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Question

Name the three major types of employee training. 

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Answer

Induction training, on-the-job training, and off-the-job training.

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Question

Name the advantages of employee training and development.

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Answer

Increased productivity, increased motivation, higher rate of employee retention, quality production, and improved customer service.

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Question

What is a higher rate of employee retention?


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Answer

It means fewer employees leave the organization over a period of time.

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Question

What is work shadowing? 

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Answer

Employees could be asked to observe senior colleagues understand their roles and the requirements of the job 

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Question

In which type of training employees are sent to attend a seminar, course, or complete a certification. 

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Answer

Off-the-job training. 

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Question

In the _________ step,  the need for training is identified by analyzing the skills and the knowledge required for operational tasks. 

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Answer

need identification 

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