|Assignment: Imagine you have just 2 minutes or so to give someone an "elevator speech" regarding the "truth" about training. This person does not believe that training is important, complicated, or even necessary. What might you say to this individual to convince him or her otherwise? What key insights could you impart that this person likely would not have known and would find surprising and/or interesting?
Three Key Points:
One effect of the current world economy is an increasingly competitive environment. Paramount to this new competitive environment is obtaining and retaining highly skilled and motivated workers. Raymond Noe in his book entitled Employee Training and Development stated that despite the need for high-level skills in today’s job market, many job applicants lack those necessary skills, in fact surveys of employers report that high school graduates are deficient in problem solving/critical thinking, in addition they are lacking in written and oral communication skills, and further have a subpar work ethic. Retaining good skilled works is critical, and a strategic training program can support employee retention. A study conducted by the American Society for Training and Development found that employees want training that will help them grow their skills and knowledge to better perform their current job. Training increases employee loyalty, and thus retention, and helps you attract the best possible employees.
Another important advantage to a solid training program is that training improves a company’s competitive edge and enhances company profits. According to the American Society for Training and Development, companies that invest in learning outperform the market by more than 45 percent. Companies that don’t invest in their staff’s professional development underperform the market by 22 percent. It is imperative that companies understand that keeping worker skills up to date will at the very least keep their company in the running, but for many who invest in training they can expect increased profits. “Firms that invest $1,500 per employee in training compared with those that spend $125 experience an average of 24 percent higher gross profit margins and 218 percent higher revenue per employee” (Bassi, 2000).
So, the truth about training, you would be crazy not to invest in training.
Bassi, L., (2000) Profiting From Learning: Do Firms' Investments in Education and Training Pay Off? T&D, American Society for Training and Development
Bassi, L. & McMurrer, D. (2007). Maximizing your return on people. Harvard Business Review, 85(3), pg. 115-123. Retrieved from http://web.ebscohost.com.ezp.waldenulibrary.org
Noe, R. A. (2010). Employee training and development (5th ed.). New York, NY: McGraw Hill.
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