The Value of Employee Training and Career Development

by HSG on May 26, 2017 in Articles for Software Fans

We are not all equally motivated. Some people have more self-drive than other people. This is why we find that some people always end up at the top even when the odds are against them. An employee, with this realization, through the Human Resource department, should be able to design efficient career development systems. For this system to work, the employer must understand the nature of the business environment in which they are operating.

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The purpose of training employees is to enable them to grow with time and increase their efficiency. The business world is quite dynamic, nothing stays the same for long. Training one’s employees allows them to keep abreast with the ever changing technological advancements and many other factors that are relevant to his/her line of work. Employees cannot be expected to solve all their employer’s expectations with static skills and techniques. Even the most updated technology becomes obsolete at some point.
People are the biggest assets in organizations. For an establishment to flourish, it is important that the employer understands certain key things that help spur their development.

In a report from the Harvard Business Review, “The Impact of Employee Engagement of Performance,” the most impactful employee drivers are:

-         Being recognized for performance 72%

-         Having a clear understanding of the job’s contribution to strategy 70%

-         Management continually updates and communicates strategy 70%

-         Having business goals that understood and communicated companywide 69%

-         Individual goals aligned with corporate goals 67%

-         Reviews and assessments aligned with corporate goals 64%

-         Training and development organized around corporate goals. 52%

The reason companies need to retain employees is that recruiting and training new ones is expensive and time-consuming. Also, frequent turnover has a negative impact on employee morale, productivity, and company revenue. The fact is that that onboarding a new employee takes quite a bit of time and money.

Some studies (such as SHMR) estimates that whenever a business replaces a salaried employee, it costs 6 to 9 months’ salary on average. For a manager making $40,000 a year, that's $20,000 to $30,000 in recruiting and training expenses.

Employees start looking for employment else when they are discontented. They often feel unhappy with their career prospects and start looking for better pay and benefits. At times, these discontented employees may feel that their current job may not be as challenging as they would wish it to be. According to the CareerBuilder survey, the employees most likely to leave their organizations are for some of the following reasons:

-       They feel like they have a job, not a career—52%

-       They’re underemployed—31%

-       Not trained sufficiently —35%

-       Overlooked—31%

-       Lack of career advancement—37%

-       Underpaid—22

-       Mismanaged—27%

-       Work/life imbalance—33%

The Role of Career Development Programs
Career development programs reduce high turnover rates drastically. The reason why career development programs are so effective is that they create a sense of loyalty between the employers and the employees. The employees feel appreciated when the employer invests in them. And, people who are looking to be employed are more likely to apply to an organization that offers career development programs than one does not. However, there is no “one” magic formula that employers can use to create a program that suits their needs.

According to Deloitte University Press, 90% of executives understand the importance of employee engagement, although fewer than 50% understand how to address this issue. We do know that, career development programs, apart from retention of employees, it increases their productivity as well. The ultimate result is the increase in profits made; a win wins situation. These programs help employees to grow not only professionally but also on a personal level. The growth enables the employees to deal with adverse situations professionally and in their private lives.

Training programs in a very big way improve the relationship between employees and the way they learn how to work as a team. The unity enables them to share knowledge freely and even train fellow employees by passing relevant information on things that affect them. As a result, employees practice self-analysis. That way, they gauge themselves and appreciate their strengths and weaknesses. With such a fete achieved, they can improve on their weaknesses.

Organizations that offer employee training programs and career advancement programs are less likely to face the problem of employee attrition. Their employees rarely leave the company when they undergo training along with their regular jobs.
The truth of the matter is that employees strive daily to make sure that the goals and objectives of the organization are realized. Management ought to acknowledge this and offer opportunities to improve the skillsets of current employees as well as their own challenging roles. 

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