pens if we invest in training and developing our people and they leave?

What happens if we don`t and they stay?

Is investment in the area oI training and development linked to the bottom line within
the business? Increasingly, high perIorming organisations today are recognising the
need to use best training and development practices to enhance their competitive
advantage. Training and development is an essential element oI every business iI the
value and potential oI it`s people is to be harnessed and grown. Many studies have
highlighted the clear links between well designed and strategic training and
development initiatives and the bottom line within the business. The image oI an
industry and oI individual employers is also inIluenced by the extent and quality oI
staII training and development. Potential employees in such an open labour market
will assess the track record oI prospective employers in this vital area. Career
progression and development is an increasingly attractive or even basic requirement
Ior many such employees. In today`s business climate where all industries are
experiencing staII and skills shortages, companies are Iaced with stiII internal and
external competition Ior quality employees. Each employer who invests seriously in
the area oI Training and Development will reap the beneIits oI an enriched working
environment with higher levels oI staII retention as well as increased productivity and
perIormance.
In a recent IBEC survey (HR Benchmarking Report 2004), respondents were asked to
identiIy the key drivers oI training initiatives over the past year and Ior the 12 month
period ahead. The top three were health and saIety, technical changes and customer
service. In other words, organisations are now using training and development as an
incentive to retain and motivate their people and to be recognised as an employer oI
choice as well as giving staII the skills and knowledge needed to keep up with
technological change and customer service. A Iurther key Iinding in this survey was
that the vast majority oI companies surveyed (9 out oI 10) stated they provided
support to employees to pursue outside educational programmes. This support
consisted oI both Iinancial aid as well as time oII Ior both study and exam leave. Both
oI these initiatives may have beneIits which are diIIicult to quantiIy, but areas such as
staII turnover and morale are clear indicators oI success in this Iield.
While research indicates an increased interest in and awareness oI the beneIits oI
training, the question needs to be asked as to whether this translated into Irish
organisations establishing training policies and / or increasing their spend on training?
A National Survey oI Training and Development in Ireland conducted by Garavan
and Heraty in 2003 outlined a number oI key trends which are emerging in the
Training arena in Ireland. Some oI the key ones include the Iollowing :
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Irish organisations spend on average 3.55 oI payroll on training which does not
compare Iavourably with other EU member states. (The IBEC HR Benchmarking
Survey indicates a Iigure oI 3.15).
The average number oI days training provided per employee per year in 2004 was
5.35. (IBEC HR Benchmarking Survey indicates an average Iigure oI 3-5 days).
There is evidence oI a positive attitude to training and development among those
surveyed with many viewing it to be an important component in the organisation`s
strategy.
Smaller Iirms are more likely to deliver training in an ad hoc way with larger
companies applying a more Iormal approach to managing training.
Line managers and employees seem to have a greater role in the organisation and
design oI training and development.
There is still a strong usage oI the traditional Iorms oI learning strategies
including classroom teaching and subject driven courses, although there is a
growth in the use oI new technology to deliver training.
Learning in teams is an increasingly popular Iorm oI learning in the workplace.
Employees are now taking more personal ownership Ior their own development.
However, the percentage spend and number oI days spent training staII may be useIul
in order to get an overview oI the companies commitment to training and
development, but it is the manner, approach and content oI the training initiatives as
well as their assessment and Iollow up which determine success. It is all too easy to
throw money at a perIormance problem and assume that a training course will sort it
out, when this may well be just putting a plaster over an open wound. Training
initiatives need to be strategically aligned to the overall company mission and goals.
They need to be designed and delivered with the aim oI helping staII to achieve their
departmental as well as personal goals, so the trend oI increased involvement by line
managers and employees is a positive development in terms oI ownership oI the
training and learning. By adopting a strategic approach to training and development
rather than an unplanned and ad hoc one, training and development initiatives become
more targeted, measurable and eIIective. However, increased Ilexibility in terms oI
training delivery may need to be expanded in the Iuture to Iacilitate participant`s
diIIerent learning styles as well as liIestyles. They also need to be assessed in terms
oI reaction, learning, behaviour change and results to determine the added value to the
organisation. This area oI evaluation is one whereby many organisations simply
evaluate the eIIectiveness oI the training intervention based on the initial reaction oI
participants, an area which clearly needs to be expanded. A sample training and
development approach is outlined below describing the essential elements in a
strategic approach.
stablishment of Company Training and Development Policy
Sample 1raining and Development Plan
Mission statement / Aims / Objectives / Ethos
3
***
dentification of Training and Development Needs
Assessment oI organisational needs / Employee needs / Job analysis
DeIine objectives - Individual needs / Organisational needs / Long-term / Short-term
***
Development of Training and Development Plan
Types oI training and development required - Knowledge / Skills / Attitudinal / Personal Development
/ Continuing ProIessional Development (CPD)
Establishment oI standards/ Gap in current knowledge, skills, attitude levels
***
Selection of Training Methods
Formal / InIormal
On-the-job methods - 'Sitting by Nelly, Coaching, Mentoring, In-house courses
OII-the-job methods - Work placement, External courses, Distance learning, Workshops
Design oI in-house programmes / Participation in externally run programmes
***
mplementing Training and Development
Selection oI participants
StaII scheduling
Recording oI training undertaken
Conducting and / or Iacilitating training and development
***
valuating Training and Development Process
Measurement oI results against standards
Reaction / Learning / Behaviour / Results
Feedback and redesign iI necessary oI company policy and objectives
In order to remain competitive and to ensure excellent staII are attracted to and
remain within the organisation, companies need to ensure that the training and
development oI all employees is an issue which is taken seriously. By investing in
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the development oI the people who are the Iace oI the business, companies can get
ahead oI the competition and excel in what they do. One oI the most important
aspects oI managing people lies in helping employees become more eIIective at their
jobs and being able to adapt to that job or another job as he/she matures within the
organisation. This requires a high level oI co-ordination between employee training
and development and the range oI other personnel Iunctions, such as recruitment and
selection, perIormance appraisal, reward systems and employee relations.
IdentiIication oI a company`s training needs, designing a relevant training plan,
selecting and implementing the resulting training programme and evaluating it`s
success are thereIore integral elements oI the overall Human Resource process.
However, Ior any oI these Iunctions to be eIIective, the Training plans and policies
must be in line with the organisation`s strategic objectives. The Training Iunction is
increasingly considered to be a key player in helping the organisation to achieve it`s
goals through it`s people as it is becoming more generally accepted that there is a
strong correlation between organisational success and investment in training and
development. There is now a growing awareness oI the importance oI a planned
approach to training and development as a tool Ior competitive advantage, staII
recruitment, selection, retention and motivation.
The whole Training and Development Iunction has increasingly acquired status as the
instrument Ior breaking new ground and bringing about change through its
developmental activities. Training managers must provide expert advice to top level
management, usually about the value to the organisation oI a particular kind oI
training. Furthermore, they must have the means to persuade management as to a
systematic approach to training outlining Ior example, the extent to which changes in
structure and procedures will be necessary to support training. The training must take
place within a Iramework oI partnership between the trainer, employer and employee.
This relationship must be characterised by trust between all stakeholders so that
training does not simply reIlect the views oI the employer. This commonality oI
interest must be identiIied and worked towards. Training and development is about
making a diIIerence to the bottom line, both in terms oI how people Ieel about their
jobs as well as in the area oI perIormance and productivity. Ultimately, it is about
adding real value to the organisation and those who comprise it.