Manage-Wise

Training and development

From the time you were born, you have been in training. Take a few minutes to think about everything you have learned over the years… how to dress yourself, how to get your homework done, how to drive, how to perform tasks at work… the list is endless. Now, think about how you learned to do all those things. Did you have a teacher? Did you learn in classroom setting? Did you get it right the first time or make some mistakes and have to start over? Did you learn everything all at once or over time?

At a basic level, training and development are needed to ensure that workers recruited and selected are able to do their jobs well and that they will be prepared for future jobs in the company. If the labor market is flush with many highly qualified workers, managers will more easily be able to hire employees with the skill sets required to be immediately productive in their jobs. As a result, these workers will need less training and development. Conversely, fewer qualified workers in the labor force will mean new employees will need more training to ensure that they have the necessary competencies.

Training and development, therefore, are critical activities for ensuring the success of a company. In addition, training frequently appears as one of the top three benefits that employees want from their employers. Providing the appropriate training and development opportunities for employees will increase their satisfaction and help them perform at a higher level, making the company more likely to achieve its goals.

But, before discussing the specifics of training and development, let’s look into two special types of training programs that organizations are paying more attention to as they focus more on employees as human capital critical to organizational success. These programs are orientation and onboarding.

Employee orientation

Employee orientation ensures that new employees know and understand company policies and procedures. When done well, these programs help employees understand how their jobs fit in with the goals of the organization. Orientation helps employees get off to a good start and improves their retention rates. The Container Store views employee orientation as a key training activity. Over the years, the company’s orientation has evolved into a weeklong program called “Foundation Week.” For one full day during Foundation Week, store managers talk to new employees about the philosophy of the company. On other days, the employees learn about how the store operates, including how products come into the store and get shelved. Employees also learn about the various parts of the store, are taught selling techniques, and learn how to perform other functions in the store, such as properly greeting customers and running the company’s store systems. By the review session on the last day, the employees are ready to start work, and do so prepared to deliver the high level of customer service. The company believes that its orientation program, coupled with its ongoing employee training programs, have definitely helped it retain its employees. Employees who understand how the company works as well as how to perform their jobs are more likely to be retained over time.

Onboarding process

For many companies, new employee orientation is only one part of a larger program referred to as onboarding. Onboarding refers to the hiring and integration process used to acclimate new employees, especially mid- and upper-level executives. Employees involved in onboarding at Randstad North America, one of the world’s largest temporary and contract staffing agencies, job shadow other employees for 16 weeks. During that time, they receive training to do a number of activities, such as administer knowledge tests to job candidates and conduct performance reviews. The goal is to get the employees acclimated to the organization and job as quickly as possible. Because up to 4% of new employees quit after a bad first day and up to 40% of senior managers hired externally fail within 18 months, programs that create a welcoming environment are critical. Formal programs bring new employees up to speed. They ensure that employees have the information they need or know where to get it, have someone to go to with questions and problems, and receive the training needed to be successful on the job.

Significant contribution

Training is the systematic process of providing employees with the competencies—knowledge, skills, and abilities—required to do their current jobs. For instance, an employee might need to learn to use new computer software to do his job. This employee would need to be trained on the new software. Training can take many forms. Employees can obtain the KSAs on the job, by attending classes either online or in a classroom setting, by participating in role plays or simulations, or through a combination of these and other methods.

In addition to training employees for their current jobs, companies also invest a lot of resources in developing employees for other jobs. For instance, Lockheed Martin invests a lot of resources in leadership development to prepare high-potential employees (employees with the greatest likelihood of being successful and making significant contributions to organizational goal achievement) for new and more significant jobs in the future. The purpose of training is to improve how well employees perform their current jobs. Development, in contrast, is future focused and aims to prepare employees to take on additional responsibilities in different jobs, usually at a higher level.

Both training and development help an organization equip its workforce to gain a sustained competitive advantage. Good managers make sure their employees participate in both. For example, many companies that invest a lot of money in skills training are also investing heavily in leadership development programs designed to prepare workers for higher-level jobs in their firms. One reason they are doing so is because as the baby boomers retire, other workers will need to be ready to step into their jobs.

The importance of training and development cannot be overemphasized. In fact, companies that treat training and development as a fundamental requirement for achieving their goals have been rewarded for this philosophy.

Excerpt from ‘Human Resources Management’ by David Lepak & Mary Gowan. Reproduced with permission © 2009, Dorling Kindersley India Pvt. Ltd.