Training Employees – Why it is More Important than Ever
Companies have found that investment in human capital in the form of training and development yields high returns. The ones that recognize the value of their employees and place a new emphasis on education and training are becoming more competitive, successful, and profitable as a result. According to a study conducted by Knowledge Assessment Management, companies in the top 20 percent of those who spend money on training receive higher returns in the stock market. Is it possible that knowledge is equal to profit?
According to an article in T+D Magazine a knowledgeable workforce may ensure a company’s survival. The article profiles four companies that survived the economic impact of September 11, 2001, and a business climate marked by recession and corporate scandals. These companies—Southwest Airlines, Viacom, Dell, and Guardsmark—all consider employee training an investment in company growth and stability. Rather than cutting back their training budgets during hard times, these companies chose to invest in the development of new skills and knowledge within their workforce. In doing so, these companies showed a commitment to their workers and gave them the educational background necessary to increase productivity and effectiveness in their respective markets. The workers, in turn, supported these companies and ensured their survival through a difficult chapter of American business history.
Experts in this field can work with your leaders to help instill the importance of a motivated and engaged workforce. That is critical to achieve success when the economy improves.
The face of business is changing at an alarming rate. Technology advances, globalization, workplace diversity and the list goes on. And all this in a weakened economy! Every industry sector and each departmental division within a company is confronting the same reality. Which outcome a company and its people will experience is directly focused on their commitment to training and development.
The new paradigm for training requires us to view it as an inseparable part of performance improvement and management. Once viewed in the eyes of management as a nonessential support tool, training and development has become an integral part of business strategy and aligned with business results. Training is a process that involves dynamic interrelationships with the other functions of the organization, especially supervisors, managers and performance management systems.
A number of trends in training and development are occurring as the marketplace changes and companies strive to achieve these levels of performance in a time when corporate dollars are not spent on training. As they watch their budgets shrink, HR and corporate training professionals are looking for cost effective training options that can still get the job done without an expensive price tag.
This economic downturn is actually an excellent time for companies to focus on maximizing internal talent and resources by means of an improved training program. Spending time and resources now to train employees will help motivate them to be ready to move forward successfully when the economy gets better.
Qualified Instructional Design firms can help you maximize your talent pool by ensuring that your succession planning and talent management processes are setting you up to emerge successfully when the economy takes an upturn.
