Training and its impact on Performance...

Higher business performance and productivity levels are markers for successful performance management. The use of training to improve performance holds massive appeal for HR managers and so the ineffectiveness of training workshops is a letdown for any manager.

Practically, organisations that aim at improving productivity invariably improve employee skills.

On a lighter note “ You need to ask participants if the programmes helped them perform their jobs better and how. And, you need to find out from supervisors if your training programme has helped achieve their units business goals.”

Unfortunately, there seems to be no explicit answer to this.

So how can managers determine the real impact of training?

In modern times managements are speculating about the ROI on training programmes in the form of improved performances. In short they are trying to translate training into bottom and top-line performance improvements. A number of organisations have analysed the ROI on training programmes. Quantifiably only the technological training sessions like e- learning have been considered. The real challenge of gauging business improvements through training sessions has still been elusive.

Accenture has developed the Accenture Learning Return On Investments methodology to help companies disclose the importance of their training programmes.

Concrete substantiation

The imminent ROI calculations on learning have been a complex task. Hence, many organisations are skeptical about these enterprise-level advantages. A comprehensive analysis of training investments is vast. Innumerable factors like employee self-esteem, information sharing and employee associations and teamwork need to be considered.

The Accenture Learning ROI methodology states three substantial components, recruitment, productivity, and performance that highlight the importance of training programmes.

Recruitment:

Opportunities for growth are the pre-requisites for any fresher. A survey of the outgoing students carried out by the National Association of Colleges and Employers revealed that ‘training opportunities were among the top three things that people consider when deciding where they want to work (the others being the opportunity for advancement and a good benefits package). ‘

Learning prospects are the primary motives for joining an organisation.

Productivity:

The impact of training on performance is an understated concept. A review of 63,000 professionals by Accenture unveiled certain facts:

77 percent of the respondents believed that training information was relevant to their work.
53 percent alleged a noteworthy increase in productivity
85 percent were sure of a reasonable expansion in skills

Retention:

A study of 31,000 employees revealed that employees who undertake training are successful because

Of fair compensation practices
They wish to maintain long-term associations with the organisation
Of the great atmosphere at the workplace

It has been observed that right from recruitment to retention training augments employee participation and performance.

The Impact of training

A model developed by Accenture researchers, and statistics professors at the University of Chicago determined employee contributions over a period of time within the organisation. For instance the performance of the sales executives can be determined by looking at the sales achieved, and the performance of customer care professionals by the number calls attended and queries solved. By plotting the data, the model stated that higher the employee access to training higher the contributions and vice-versa.

The Financial benefits

More than a quarter million of employee records comprising details like cost incurred for training, related bill rates, and the total time amount spent on the programme were thoroughly examined. A detailed examination and correlation of cost and benefits analysis showed that on an average the professionals who underwent training

Are 17 percent more dynamic
Perform at higher levels
Continue with the organisations for longer periods
At Accenture, the yearly per person net profit of the training sessions is $25,324. That is on an average the 50,000 employees capitulate an organisation wide earnings of $1.26 billion on training.

Remarking on the method, Marvin Zonis, professor-University of Chicago, Graduate School of Business, said, “Accenture has broken new ground in the measurement of some of the so-called ‘softer’ factors that are known to have a great impact on a company’s financial performance. By bringing rigour to an area that many have thought would be impossible to measure, Accenture has made a convincing case for maintaining high levels of training investment, even in tough economic conditions.”

Another case in point

The railways are using an integrated approach to improve performance. The right mix of imparting training, upgrading technology and transforming employee behaviour is vital to boost productivity.

Challenge for railways
Rail companies face distinct challenges like wide-ranging coverage, dependability and travellers’ well being. However, with changing times, adaptability to new situations is a must. The top management should ascertain a culture that fosters creativity and adaptability. For example, supervisors may need added support to display entrepreneurial enterprise. Something new for station personnel can be customer care, something that goes beyond ticketing and scheduling.

Performance solutions
Employees who are given the right application tools perform better. Yet, there is the factor of motivation that needs to be addressed over time.

Traditionally, both the employees and the management viewed training as a module that had to be addressed. Period. Today, organisations want the desired benefits that training programmes offer.

Learning cycles
Apart from technological training, the emphasis is on ‘soft skills’ that helps employees survive in the tough competitive world. Timely and well-deserving rewards and a conducive environment for learning motivate employees tremendously. Every employee carries information that has little or more value in his field of work. Initiating discussions, informal meetings is a highly value adding activity.

Executive training, employee development, change management, mentoring and transcendental leadership motivate employees.

To conclude, training and learning sessions should be conducted in the right set-up, under the right circumstances. Integrating technology and human capital gives a broader perspective and this ensures success in a volatile economy.
Improving human performance is not easy, and not always speedy. However, the right efforts will guide us to astonishing results.

Reference:
The ManageMentor