Training: Your Investment in People Development and Retention
“The right employee training, development and education, at the right time, provides big payoffs for the employer in increased productivity, knowledge, loyalty, and contribution. Learn the approaches that will guarantee your training brings a return on your investment.”, remarks Graham Raspass, CEO, BSI Learning Pty Limited.
The Society for Training and Development (ASTD) "estimates that organisations spend $109.25 billion on employee learning and development annually, with nearly three quarters ($79.75 billion) spent on the internal learning function, and the remainder ($29.50 billion) spent on external services."
Licensing, certification, continuing education, and training to retain and grow skills are becoming increasingly important. According to the State of the Industry Report: The Society for Training and Development's Annual Review of Trends in Employer-Provided Training, the amount of employer-provided training is rising. The ASTD annual report "look[s] to exemplary organisations from the ASTD Benchmarking Forum (BMF) and the BEST [training] Award winners to determine how they invest in employee learning and development." The ASTD study found: "The average annual expenditure per employee in ASTD’s sample of large organisations (BMF) increased to $1,424 per employee, an increase of 4.0 percent from the previous year. Average expenditure per employee in our sample of BEST organisations increased 3.7 percent to $1,616. "For BMF organisations, expenditure as a percentage of payroll did not change from the previous year, remaining at 2.20 percent. The average expenditure as a percentage of payroll in BEST Award winners was lower in 2005, at 2.72 percent, than in 2004 (2.86 percent). "The average number of hours of formal learning per employee in BMF organisations increased from 35 hours per employee in 2004 to 41 hours per employee in 2005. In BEST organisations, the average number of learning hours per employee rose from 36 in 2004 to 43 in 2005." With such an investment of hours and dollars in training, organisations need to make certain their choices in training investments are wise. Important Aspects of Training “How training needs are determined, how training is viewed by employees, and how training is delivered become critically important issues. Training trends and methods for gaining knowledge, other than traditional classroom training, such as coaching and mentoring, take center stage.”, says Katrena Friel, Principal Consultant BSI Learning. “New employee orientation, or new employee onboarding, is a significant factor in helping new employees hit the ground running. Training that helps each employee grow their skills and knowledge to better perform their current job is appreciated as a benefit. Training also increases employee loyalty, and thus retention, and helps you attract the best possible employees….”, said Katrena. “Transfer of training from the training provider, whether online or in a classroom, to the job, is also increasingly reviewed as you invest more resources in training.” Learn the approaches that will guarantee a return on your investment and ensure employee loyalty. Organisations are increasingly asking for justification that their training investments produces results - be prepared to demonstrate your results. Options for Training and Education for Employees Options for employee training and development are multiplying due to several factors: · Technological innovations, · Employee retention strategies, and · The need for organisations to constantly develop their employees' ability to keep up with the pace of change. Sending an employee for training at a one-day seminar or a week-long workshop is only one of many options that exist today. The Society for Training and Development has traditionally recommended a minimum of 40 hours of training per year for every employee. This is consistent with the emphasis employees place on the opportunity to grow and develop both their skills and career while in your employ. The chance for ongoing development is one of the top five factors employees want to experience at work. In fact, the inability of an employee to see progress or advancement opportunities is an often cited reason for leaving an employer. Training and development rates high on the list of retention strategies for your employees. Only their perception of their salary and benefits as being competitive, and reporting to a manager they like, rates higher. Options for Employee Training and Development When you think about training and development, options exist externally, internally, and online. There are choices ranging from seminars to book clubs to mentoring programs. Here are the existing alternatives which can help your employees continue to grow. For recruiting, retention, and managing change and continuous improvement, you should adopt all of these within your organisation. External Education, Training, and Development · Seminars, workshops, and classes come in every variety imaginable, both in-person and online. · Take field trips to other companies and organisations. · Colleges and universities, and occasionally, local adult education, community colleges or technical schools provide classes. Universities are reaching out to adult learners with evening and weekend MBA and business programs. · Professional association seminars, meetings, and conferences offer training opportunities. Internal Education, Training, and Development · Onsite seminars and classes provide training customised to your organisation. · Coaching gives employees the opportunity to share knowledge. · Mentoring is increasingly important in employee development and training as are formal mentoring programs. · Form a Book Club at work. What Your Organisation Can Do to Facilitate Continuous Learning and Regular Training · Create a learning environment. Communicate the expectation for continued learning. · Offer work time support for learning. Make online learning and reading part of every employee's day. · Provide a professional library. · Offer college tuition reimbursement. · Enable flexible schedules so employees can attend classes. · Pay for professional association memberships and conference attendance annually for employees. “Training is crucial to the ongoing development of the people you employ and their retention and success. Be creative to provide diverse opportunities for training….” recommends Katrena. Contact Katrena or Graham on 02 9215 0196 for a discussion on how to ensure your business thrives in these challenging times.