Impact Of Employee Training And Development on Organizational

Question: Discuss about the Impact Of Employee Training And Development. Answer: Introduction Transforming demographics and disruptive technologies are in todays business world redefining the workforce. Smart organizations are responding by reinventing workplace learning to make their programs more efficient and relevant. They also establish an organizational culture that encourages regular learning and develops innovative leaders at all sectors of the company (Dorman 2013, p.17). Global senior managements experience an environment that is more competitive than ever, one which can only be realized by possessing high-quality talent that is extremely engaged, motivated and capable. Successful organizations understand that to be triumphant means being able to strategically develop the skill needed to envision and carry out the business strategies that will ensure their future success. The introduction of the millennial workforce which is the tech-savvy generation considered to be the largest in American history, is establishing an increasing demand for more unofficial and innovative approaches to workplace learning (Reddy 2008, p.251). This means that workers no longer view their careers as the operation of one organization, but the peak of a determined set of development experiences they possess themselves. In the near future, workplace learning is expected to be about decentralized peer-to-peer learning, social collaboration, and team-oriented activities. Furthermore, learning is expected to be mobile where access will not only be instantaneous, but also quite regular. Workplace learning will be relationship-oriented and experiential, and organizations will not be able to standardize or control knowledge which will emerge from everywhere. Discussion The impact of employee training and development on organizational profits Organizations that understand the power of learning in todays business environment tend to think holistically about how learning takes place in the workplace. They also seek to establish settings where learning thrives. These organizations have realized that classroom training is no longer enough and that an efficient learning setting must incorporate performance support to provide continuous reinforcement, and collaborative communities that can tap the wisdom of the public (Noe 2008, p.168). Organizations can also enjoy the rewards of providing training and development programs for their workers because well trained employees assist in the increment of profits and productivity. Effective training and development saves labor by minimizing the time spent on problem-solving and in the end, saves money by producing a better workforce. Poor employee performance often comes about when workers do not know exactly what is expected of them, how to do their tasks or why they need to perform in a certain manner. Training and development helps solve such performance issues by clarifying the details of the tasks. In turn, it reduces duplication of effort in the workplace, the problem solving required adjusting bad performances, and the time spent correcting errors (Salas, Tannenbaum Smith-Jentsch 2012, p.99). What organizations today need to realize is that improved employee performance from training and development programs can actually minimize staff turnover, result in fewer customer complaints, and minimize maintenance costs through reduction of equipment breakdowns. Knowing that they are valued within the organization, employees will tend to put in more effort so as to reciprocate the favor. Hard work ultimately leads to more profits, especially in terms of profit margins and production (Noe, Clark Klein 2014, p.245). From what has been observed recently, a trained workforce is able to handle more duties than before given their newly acquired know-how which also improves their versatility. Proficiency in a given area might, to some extent, minimize chances of human error, thus reducing the costs incurred during repair. A happier workforce means better retention and productivity. The retention of the trained workers will minimize the high cost of recruiting new staff and have a constructive impact. Budgetary considerations in Human Resources, such as accommodating the need for employee training As indicated, the right employee training program is able to increase employee commitment, decrease the need for supervision, improve customer service, minimize absenteeism, increase productivity, retention, and boost sales (Aguinis Kraiger 2009, p.473). However, the cost of the training program is determined by the form of training required. Different types of training exist, each varying greatly in terms of cost. Some of the training options that an organization can consider include on-the-job mentoring and coaching, self-directed study, relative cost, job shadowing, video presentations, e-learning, college courses, seminars, group workshops, one-to-one tutoring, and in-house training (Illeris 2011, p.76). That is why it is important to choose the training activities that best suit the results and budget. Budgeting for employee training does not necessarily mean using excess money when it is available. Many large companies commit to investing between 2% and 5% of salary budgets back into employee training. However, individual organizations need to find a number that their budget can take in. Budgetary considerations with regards to accommodation of the need for employee training are quite significant in todays organizations. An organization might be tempted to utilize the least expensive training materials or trainers available. An alternative to this might be negotiating reduced-cost or free training from suppliers who will be willing to assist if it means their products will be triumphant (Dorman 2013, p.19). Managing employee training resources and budgets is no different from managing any other investment in an organization. It all comes down to how much resource, money and time is required to operate different programs and the advantages which are generated in return. Employee training budget is significant because it is seen as an investment in any given organization. Moreove r, training expenses have been constructively correlated with employee and customer retentions, overall profitability and sales (Reddy 2008, p.252). Most businesses may find it more efficient to outsource particular training needs to suppliers or gain from advances in learning technologies so as to minimize training costs. However, it is more important to ensure that the training budget satisfactorily covers the realistic costs linked with the training techniques an organization employs. Initially, businesses may need to spend cash on realizing or researching which talent deficit is blocking employee performance and productivity. The real training need may thus be overlooked if care is not taken to determine it (Noe 2008, p.170). An effective employee training budget is intended to address the real problems by spending cash on the business and employee needs. Propose changes for the future Workplace learning for employees should begin on the very first day on the job, and never stop. Keeping in mind the rate at which information transforms and the nature of peoples always on culture, workers must be proactive (Salas, Tannenbaum Smith-Jentsch 2012, p.100). They can no longer afford to wait to gain the knowledge and talents needed for a new job or a prolonged responsibility in the organization. A learning company tends to monitor the effectiveness of employee training programs by gauging the number of classes offered and the number of attendees. It is predicted that in future, organizations will no longer care how their workers get knowledge or obtain certain skills or abilities, but only that they can provide evidence of their proficiency. For employee training and development in todays organizations to be successful, it is necessary for the management to provide the kind of training necessary to meet the basic skills for the job. A good understanding of the talents, competences and knowledge that the organization will require in future should also be developed (Noe, Clark Klein 2014, p.247). It is important to look for learning opportunities in daily activities. Furthermore, management should support its staff when they identify learning activities that make them more valuable to the organization, both now and in future. Organizations need to work together to save on training costs. They should also choose a particular training structure so that some employees add to the already existing skills, rather than everyone training under similar conditions. Introducing a triumphant employee training program takes more than simply having a financial plan. Human resource department needs to emphasize training as a form of investment (Aguinis Kraiger 2009, p.474). It should also encourage a learning culture where employees are aware that the organization actually cares about the boosting of their talents and wants every employee to remain competitive within the skill set. As already indicated, employee training and development should be a continuous process. Organizations should not limit their training only to new workers, but instead make an effort of bringing in as many employees as possible and who would gain from extra training. Conclusion Effective employee training and development is determined by knowing what is required. Given the need for cost-effective solutions and limited budgets, todays organizations need to ensure that any resource invested in training programs are targeted at areas where employee training and development is needed and a constructive return on investment is assured. Organizations have realized that maintaining employees talents and improving their performance is important when looking to retain a competitive edge. For workers, training and development programs can greatly strengthen workplace skills and result to greater long lasting job security. Employers also know that having well trained workforce is vital to maintaining competitive performance and differentiating an organization from its competitors. As workers take on expanded duties, it has become more significant for organization in todays business world to offer specialized development so as to assist their teams keep up.Training pro grams enhances job satisfaction for workers by allowing them to build novel talents and take on more challenging responsibilities. References Aguinis, H Kraiger, K 2009, Benefits of training and development for individuals and teams, Annual Review of Organizational Psychology and Organizational Behavior, 1, pp. 245 275. Dorman, T 2013, Framework for reducing restrictive practices, Learning Disability Practice, 16(8), pp.10 20. Illeris, K 2011, The fundamentals of workplace learning: Understanding how people learn in working life, Routledge, 16(8), pp. 67 77. 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