Why Employee Training and Development is Important for Business?

Employees are the most important asset for an organization. To make the most out of this asset the only sustainable option is the development training program. These initiatives help employees sharpen their existing skills and make a superior contribution to the organization and their job roles. Under the current economy when most businesses are cutting costs to keep themselves competitive in the market employee development programs often come under scrutiny. Here in this blog, we’ll talk in length about the importance of training under the current business scenario,

What is employee training and development?

The words training and development almost sound synonymous but these words have some differences in implications. Training is typically focused on improving an employee’s specific skills or perhaps new skills and knowledge required for their current job or immediate tasks related to their job role. On the other hand, development comes with more long-term plans. It has a broader focus and aims to enhance an employee’s overall capabilities which becomes impactful in the long run, including leadership, problem-solving, adaptability, and career growth potential.

Type of Training Program

It’s necessary to know about the different scopes when it comes to learning new skills. There are various type of training depending on the employees need to organizational demand. So here are some common types you can pursue when it comes to upgrading your employee performance through training:

1. On-the-Job Training
2. Classroom Training
3. Online training (E-Learning)
4. Mentorship and Coaching
5. Seminars and Workshops
6. Simulations and Role-Playing
7. Cross-Training
8. Leadership Development Programs
9. Soft Skill Training
10. Diversity and Inclusion Training

Examples of Different Training Methods

Now that we have an idea about different types of training we would like to illustrate the knowledge further by providing some relevant examples.

1. On-the-job training example:

A junior app developer learning to develop a new app with hands-on experience from a senior developer.

2. Classroom training example:

A group of senior members of a company goes through specific training like compliance so the organization earns the expertise in a classroom.

3. Online training example:

Banking professionals taking up-to-date AML & CFT e-learning course training to stay compliant with national regulations.

Here with these three examples, we’ve tried to elaborate on the role of different training methods and how training helps employees in different ways.

Importance of Effective Training

Now let’s talk about the importance of creating development opportunities for your employees. We’ll discuss why addressing training needs or proactively creating employee training and development programs should be your priority.

• Enhanced job performance: Often employees feel under pressure of expectations from them. Training is the perfect way to enhance their respective job performance.
• Increased productivity: Training is important to enhance the productivity of employees. Training enhances the employee’s capacity which develops productivity too.
• Employee satisfaction: Training is essential for employee satisfaction as it shows the development that the employee is valued which improves job satisfaction.
• Adaptability: Training programs help employees adapt to different roles and stay updated with industry trends, technology, and best practices.
• Succession planning: Development is essential for an organization’s long-term sustainability. It can reduce employee turnover and help the organization plan its succession.
• Innovation: Innovative ideas and problem-solving are essential for business. Training can promote an innovation mindset within employees which can support the organization.
• Improved services: Benefits of employee training result in improved services as well. Trained employees become more capable of doing their role better marking improvement in services.
• Competitive advantage: Well-trained employees empowered with knowledge and skills provide a competitive advantage to their organization in the market.

The importance of employee training goes beyond these few angles. If you start to invest in employee training you will build a better and more sustainable future for your organization. Later we will talk about benefits, training selection process, and impact measurement.

Benefits of Employee Training and Development

ROI is a big part of learning and development programs for an organization. Let’s talk about the benefits or ROIs of training employees in this section.

• Customization for Organizational Needs: Training sessions can equip employees according to organizational needs providing opportunities for customization within the organization.
• Better Risk Management: Training and development help employees learn how to manage problems and risk better which provides the organization with numerous advantages.
• Employee Empowerment for Problem-Solving: Training empowers employees to take ownership of issues and find creative solutions, leading to a more resourceful and self-sufficient workforce.
• Enhanced Employee Loyalty: Professional development enhances the loyalty of an employee to the organization which provides an organization with more committed employees.
• Improved Organizational Culture: Training and development can help foster a positive company culture focused on learning, growth, and continuous improvement.
• Sustainability and Longevity: Investing in training can equip employees with the skills required for emerging roles, ensuring the organization’s sustainability & relevance.
• Positive Reputation: Investing in employee training can attract top talent more easily and enjoy a positive reputation in their industry.
• Enhanced Employee Engagement: When employees receive proper career development programs it enhances employee engagement.

Selecting Training and Development for Employees

So far we’ve learned about the importance of training and development programs. Now we’ll discuss the selection criteria for training and development programs for employees.

Criteria	Actions
Alignment with Organizational Goals	Ensure the organization’s strategic objectives and business priorities.
Relevance to Job Roles	Select programs that directly relate to employees’ job roles and responsibilities.
Skill Gap Analysis	Conduct a thorough analysis of employees’ current skills and identify skill gaps.
Return on Investment (ROI)	Assess the ROI of training programs, considering both the cost of implementation & benefits.
Engagement and Interactivity	Evaluate the level of engagement and interactivity within the training.
Tracking and Assessment	Ensure the program includes mechanisms for tracking participant progress.
Compliance and Legal Requirements	Confirm that the training complies with legal requirements and industry regulations.

 

Measuring post-training business growth

Measuring growth is essential to the success of any training. Now let’s talk about some post-training analysis methods to measure post-training business impact.

1. Monitor specific KPIs related to the training’s objectives.
2. Administer assessments or tests to employees before and after training.
3. Observe if the employees are applying newly acquired skills in real work scenarios.
4. Evaluate employee performance in their roles through regular performance reviews.
5. Collect feedback from employees and their supervisors.
6. Gather feedback from customers to assess improvements if the training involves customers.
7. Measure changes in productivity metrics such as increased output.
8. Calculate cost savings resulting from training-related improvements,
9. Assess whether employees feel more engaged and satisfied with their work.
10. Track metrics like sales quotas, project completion rates, etc.
11. Collect feedback from peers and managers about the trained employees’ abilities.
12. Conduct a formal return on investment (ROI) analysis.

Training for employees is important and so is the evaluation. By using a combination of these methods, organizations can gain a comprehensive understanding of how the benefits of training and development training are affecting the organization.

Final Words on The Employee Training and Development

Knowledge is power and investing in employee’s knowledge is equivalent to investing in the organization’s growth. When you provide tools, knowledge & opportunities for your organization to excel you are building your organization for future excellence. Enroute Center for Development provides you with the right tools required for you to craft a robust employee training program. With over 15 years of experience, we understand the role of training in your organization’s growth and success.

Frequently Asked Questions for Employee Training and Development Importance

1. Why employee training is important for business success? 

Training is one of the important aspects of employee development. In today’s ever-changing business landscape training is the only way to enhance job performance, boost satisfaction, foster adaptability, and promote innovation. All these things ultimately lead to increased productivity, competitiveness, and profitability which makes ongoing training and development opportunities important for business success.

2. Why should you train your employees? 

There are numerous reasons behind the importance of engaging in training for employees. Some of them are:

• Enhance job performance.
• Improve employee satisfaction.
• Foster adaptability.
• Promote innovation.
• Increase productivity.
• Stay competitive.
• Ensure compliance.
• Develop future leaders.
• Attract and retain talent.
• Boost organizational success.

3. How to create effective training and development opportunities for employees?

Creating effective training and development opportunities requires a systematic approach. Here are some ways you can follow:

• Identify Organizational Goals
• Assess Employee Needs
• Design Customized Programs
• Select Appropriate Delivery Methods
• Set Clear Objectives
• Develop High-Quality Content
• Engage Qualified Instructors
• Provide Flexibility
• Offer Ongoing Support
• Track Progress and Assess Learning
• Gather Feedback
• Measure RO
• Evaluate and Iterate

4. What are the types of training for new employees? 

Employee training varies from different perspectives.  Training helps your employees to learn and use their skills in a different business environment. Here are some trainings suitable for new employees.

1. Orientation Training
2. Compliance and Policy Training
3. Job-Specific Training
4. Technical and Systems Training
5. Customer Service Training
6. Product or Service Training
7. Sales and Marketing Training
8. Soft Skills Training
9. Leadership and Management Training
10. Cultural and Diversity Training
11. Health and Safety Training
12. Team Building and Networking etc.

5. What are the methods of employee training and development?  

Employees are more likely to learn if you select an engaging method of training according to their individual needs analysis. Here are some of the methods you can follow,

• On-the-Job Training
• Classroom Training
• E-Learning
• Mentorship and Coaching
• Seminars and Workshops
• Simulations and Role-Playing
• Job Rotation
• Leadership Development Programs
• Soft Skills Workshops
• Compliance and Safety Training
• Diversity and Inclusion Training
• Gamification and Interactive Learning etc.