Training is the process of enhancing the knowledge, skills, capabilities, and competencies of employees for the purpose of doing a specific job. The main objective of training is to improve employee’s capability, capacity, and performance in their current jobs as well as preparing the employees for a future job. It is the quality of employees and their development through training and continuous education that determine the long-term profitability of an organization (Krueger, 1998).
Every year, organizations spend billions of dollars to provide training for their employees. This is because, training offers many benefits both to the organization and its employees. These benefits range from increased efficiency and productivity in the organization to increased morale, motivation and job satisfaction to the employees. In addition, training ensures that new employees acquire the necessary knowledge, skills, qualities and qualifications for the job as well as enabling the new employees to reach the performance level expected of them by the organization. In the long term, training helps in reducing costs due to factors such as reducing waste and increasing labour productivity. Customers place a very high value in the quality of service or products that they receive from an organization. In this regard, training helps to improve the image and reputation of the organization as customers gain more confidence in well -trained employees resulting in increased profitability. In an organization, risk reduction is an important consideration and well trained employees are able to recognize risk factors and are able to take corrective action in case of an accident. For most employees, training is a way to earn professional certification. This can be considered as professional development which supports employees in gaining a wider perspective of their jobs as well as in their personal lives thus keeping the employees motivated.
Organizations usually establish a strategic plan that addresses their strategic objectives that will help them in achieving their short term and long-term goals. In this regard, training is a very important factor that helps the organization achieve its strategic objectives by filling the gaps in knowledge, skills and capacity required to achieve these organizational objectives. Well- trained employees have a better understanding of the organization’s strategic direction (vision, mission and values) and this helps the organization in gaining a competitive advantage in the market and also helps the organization in achieving its goals on budget and in a timely manner.
One of the major challenges facing organizations today is that of employee retention. Research shows that training has an impact on employee commitment and employee turnover in the organization. One of the strategies that organizations are applying today as they seek to achieve their strategic goals is the employee commitment strategy which attempts to develop a psychological connection between the company and employee as a means of achieving the strategic goals (Arthur, 1994). Training improves the employee commitment to the organization and a fully committed employee will remain in the organization longer and this helps in reducing the numerous direct and indirect costs associated with employee turnover.
In summary, organizations today operate in a very dynamic environment that is turbulent, confusing, threatening and often unpredictable. These organizations face dynamic environments characterized by unpredictable social, political, technological, and economic changes and in order to be successful, these organizations must be strategically alert. They must understand how changes in their competitive environment are unfolding. One critical element of organizational success in today’s fast paced environment is employee training which is a tool that can assist organizations in building a more committed and productive workforce. Employee training increases organization’s productivity and profitability both in the short-term and in the long-term.
Arthur, J. B. 1994. Effects of human resource systems on manufacturing performance and turnover. The Academy of Manufacturing Performance, 37(3): 670-687.
Krueger, A., and Rouse, C. 1998. The effect of workplace education on earnings, turnover, and job performance. Journal of Labor Economics, 16(1): 61-94.