THE ROLE OF TRAINING AND DEVELOPMENT IN BANKING SECTOR

Introduction

Since the beginning of the twentieth century and especially after World War II, training programs have become widespread among organizations in the United States, involving more and more employees and also expanding in content. In the 1910s, only a few large companies such as Westinghouse, General Electric, and International Harvester had factory schools that focused on training technical skills for entry-level workers. By the 1990s, forty percent of the Fortune 500 firms have had a corporate university or learning center. In recent decades, as the U.S. companies are confronted with technological changes, domestic social problems and global economic competition, training programs in organizations have received even more attention, touted as almost a panacea for organizational problem. The enormous expansion in the content of training programs over time has now largely been taken for granted. Now people would rarely question the necessity of training in conversational

skills. However, back to the 1920s, the idea that organizations should devote resources to training employees in such skills would have been regarded as absurd. Such skills clearly were not part of the exact knowledge and methods that the employee will use on his particular job or the job just ahead of him. Nevertheless, seventy years later, eleven percent of U.S. organizations deem communications skills as the most important on their priority lists of training, and many more regard it as highly important. More than three hundred training organizations specialize in communications training (Training and Development Organizations Directory, 1994). Previous studies on training have largely focused on the incidence of formal training and the total amount of training offered. This study, however, draws attention to the enormous expansion in the content of training with an emphasis on the rise of personal development training (or popularly known as the "soft skills" training, such as leadership, teamwork, creativity, conversational skills and time management training). Personal development training can be defined as training programs that aim at improving one's cognitive and behavioral skills in dealing with one self and others. It is intended to develop one's personal potential and is not immediately related to the technical aspects of one's job tasks. Monahan, Meyer and Scott (1994) describe the spread of personal development training programs based on their survey of and interviews with more than one hundred organizations in Northern California. "Training programs became more elaborate; they incorporated, in addition to technical training for workers and human relations training for supervisors and managers, a widening array of developmental, personal growth, and self-management courses. Courses of this nature include office professionalism, time management, individual contributor programs, entrepreneur, transacting with people, and applying intelligence in the workplace, career management, and structured problem solving. Courses are also offered on health and personal well-being, including safe diets, exercise, mental health, injury prevention, holiday health, stress and nutrition."

Training Excuses Training is one element many corporations consider when looking to advance people and offer promotions. Although many employees recognize the high value those in management place on training and development, some employees are still reluctant to be trained. It is not uncommon to hear excuses regarding why someone has not received training. Some people are just comfortable in what they are doing. Some fail to see the value of training because they really believe that they already know it all. And while that might be true, the knowledge value of training and development is not the only perk. Training and development offers more than just increased knowledge. It offers the added advantage of networking and drawing from others¶ experiences. When you attend a seminar or event with others who have jobs that are much like yours, you have the added benefit of sharing from life experience. The seminar notes or the conference leader might not give you the key nugget you take back and implement in the workplace. Your best piece of advice for the day might come from the peer sitting beside you. Another common excuse is that there is not enough money budgeted to pay for training. Who said that training always carries a heavy enrollment fee? Training can be free. You can set up meetings with peers who are in similar positions and ask how they are doing their jobs. Follow someone for a day to see how he organizes or manages his work and time. The cost to you is a day out of your normal routine, so the only drawback may be working a little harder on an assignment to catch up from a day out of the office. You usually don¶t think twice about taking a day of vacation, so why should a day of training be any different? Time is another often-heard excuse when training and development is mentioned. Have you considered that training and development might actually give you more time? Often the procedures, ideas, short cuts, and timesaving hints learned in training and development sessions equal more time in the long run. Have you heard the old saying that you have to spend money to make money? Well, in a sense, the same is true for training and development. You have to devote some time to training and development to make you more productive in the long run.

Nature of Training and Development in banking sector

In simple words, training and development refers to the imparting of specific skills, abilities, knowledge to an employee. A formal definition of training and development is determined as follows:

³It is any attempt to improve current or future employee performance by increasing an employee¶s ability to perform through learning, usually by changing the employee¶s attitude or increasing his or her skills and knowledge.´

The need for training and development is determined by the employee¶s performance deficiency, computed as follows:

Training and development needs = Standard performance ± Actual performance

We can make a distinction among training, education and development. Such distinctions enables us to acquire a better perspective about the meaning if the term training. Which refers to the process of imparting specific skills, Education, on the other hand is confined theoretically learning in classroom

To distinct more, the training is offered in case of operatives whereas development programs are conducted for employees at higher levels. Education however is common to all the employees.

There is also a need of motor skills or psychomotor skills as they are refer to performance of specific physical activities . A worker needs skills to operate machines. need interpersonal skills mostly know as people skills. This is basic skills without which the operator will not function. Persuading and showing an understanding of others feelings . These skills helps a person understand oneself and others better and act accordingly. Examples of interpersonal skills include listening. learn theoretical concepts and help acquire vision to look into the distant future.Inputs in Training and Development in banking sector Any training and development programme must contain inputs which enable the participants to gain skills. The inputs of training and development are as follows: 1) Skills 2) Education 3) Development 4) Ethics 5) Attitudinal Changes 6) Decision making and problem solving skills 1) Skills Training is imparting skills to the employees. Employees particularly like supervisors and executives. and use other equipments with least damage and scrap.These skills involve learning to move various parts of their body in response to certain external and internal stimuli.

a divine discontent. Knowledge about business environment. It should make their performance result oriented and help them in being more efficient and effective. management principles and techniques. motivation. organizations depute or encourage employees to do courses on a part time basis. a nagging dissatisfaction with the status quo. human relations. That any training and development programmers must contain an element of education is well understood by the HR specialist. The late Manu Cambria. . Shaw Wallace. which should again helps him being self generating. It should also help in making the employee sensitive towards the environment that is his work place and outside. attended such a two month programmers at the Harvard business school. Education is more important for managers and executives than for lower-cadre workers. This programmers should keep the employee aware of him i. In fact.e.2) Education The purpose of education is to teach theoretical concepts and develop a sense of reasoning and judgment. his potentials and his limitations. CMD. build sense of commitment. Help him see himself as others see him and accept his self image as a prelude to change. Also helps them understand the powers in their hands and thereby develop leadership styles which inspire and motivate others. Chief executive officers (CEO¶s) are known to attend refresher course conducted in many Business schools. sometimes. specific industry analysis and the like is useful for better management of a company. 3) Development Another component of a training and development programmers is development which is less skill ± oriented but stress on knowledge. Development programmers should help an employee to be a self-starter. to see and feel points of view different from their own. It helps teach an individual to communicate without filters. And finally helps install a zest for excellence.

If the production. 5) Attitudinal Changes Attitudinal represents feelings and beliefs an individual towards others. Changing negative attitudes is difficult because of (1) (2) (3) Employees refuse to change They have prior commitments and Information needed to change attitudes may not be sufficient. finance or marketing personnel indulge in unethical practices the fault rest on the HR manager. satisfaction and job commitment. They are less seen and talked about in the personnel function this does not mean that the HR manager is absolved if the responsibility. There is no denial of the fact that ethics are largely ignored in businesses. It is his/her duty to enlighten all the employees in the organization about the need for ethical behavior. Training of this type is typically provided to potential managers. supervisors and professionals . Attitude must be changed so that the employee feels committed to the organization and give better performance. Attitudes affect motivation. 6) Decision making and problem solving skills Decision making and problem solving skill focus on methods and techniques for making organizational decision and solve work related problems. generate alternatives.4) Ethics There is a need for imparting greater ethical orientation to a training and development programmers. Learning related to decision making and problem solving skills seeks to improve trainee¶s abilities to define and structure problems. Negative attitudes needs to be converted into positive attitudes. collect and analysis information.

i) Makes the organization a better place to work and live. . d) Provides information on other government laws and administration policies. e) Improve interpersonal skills. growth and co ordination. h) Provides a good climate for learning. intra group and internal group relation and policy implementation 1) Benefits for the organization a) Improves communication between group and individuals. c) Provides information on equal opportunities and affirmative action. 2) Benefits for the individual a) Helps and individual in making better decision and effective problem solving. f) Makes organizational policies.Importance of Training and development for the banking sector There are many benefits of Training and Development to the organization as well as employee. rules and regulations viable. b) Aid in orientation of new employee and those taking new job through transfer or promotion. We have categorized as under 1) Benefits for the organization 2) Benefits for the individual 3) Benefits for personnel and human relation. g) Builds cohesiveness in group.

l) Helps a person improve his listening skill. c) Provides information on equal opportunities and affirmative action. e) Improve interpersonal skills. motivational variables of recognition achievement. d) Helps a person handle stress. responsibility and advancement are internalized and operationalised. frustration and conflict. . h) Satisfies personal needs of a trainee. tension. b) Aid in orientation of new employee and those taking new job through transfer or promotion. communication skills and attitudes. c) Aid in encouraging and achieving self±development and self confidence. g) Moves a person towards personal goals while improving interactive skills. intra group and internal group relation and policy implementation a) Improves communication between group and individuals. i) Provides the trainee an avenue for growth in his or her future. growth. 3) Benefits for personnel and human relation. d) Provides information on other government laws and administration policies. f) Increases job satisfaction and recognition. k) Helps eliminate fear in attempting new task. knowledge. e) Provides information for improving leadership. speaking skills also with his writing skills.b) Through training and development. j) Develops a sense of learning.

g) Builds cohesiveness in group. i) Makes the organization a better place to work and live.f) Makes organizational policies. Training Process The steps of Training Process are as under: Organizational Objectives and Strategies Assessment of Training Needs Establishment of Training Goals Devising Training Programmers Implementation of Training programmers¶ Evaluation of Results . rules and regulations viable. growth and co ordination. h) Provides a good climate for learning.

The following diagram explains performance deficiency Performance Deficiency Lack of skills Or knowledge other causes Training Non training measures c) Training and development objectives Once training needs are assessed. What business are we in? At what level of quality do we wish to provide this product or service? Where do we what to be in the future? Its only after answering these and other related questions that the organization must assess the strength and weakness of its human resources. Without clearly-set goals. Needs assessment occurs at two levels i. it is not possible to design a training and development programmers and after it has been implemented. an individual obviously needs training when his or her performance falls short or standards that is when there is performance deficiency. training and development goals must be established. Goals must be tangible. group level and individual level.e. This is easy where skilled training is involved . Inadequate in performance may be due to lack of skills or knowledge or any other problem. verifying and measurable. b) Needs assessment Needs assessment diagnoses present problems and future challenge to be met through training and development. there will be no way of measuring its effectiveness.a) Organizational objectives and strategies The first step in the training process is an organization in the assessment of its objectives and strategies.

etc. Since huge sums of money are spent on training and development.d) Designing training and development program Who are the trainees? Who are the trainers? What methods And techniques? where to conduct the program What is the level of training e) Conducting training activities what are the principles of learning Where is the training going to be conducted and how? y y y At the job itself. Scheduling the training programmers. On site but not the job for example in a training room in the company. . Off site such as a university. f) Implementation of the training programmers Program implementation involves actions on the following lines: y y y y Deciding the location and organizing training and other facilities. how far the programme has been useful must be judge/determined. g) Evaluation of the results The last stage in the training and development process is the evaluation of the results. Monitoring the progress of the trainees. In the practice. Conducting the programmers. however organizations either overlook or lack facilities for evaluation. Evaluation helps determine the results of the training and development programme. college classroom hotel.

by matching corporate goals and people management policies. it provides an important service to members. it is an important source of income provided the organization can deliver relevant quality training. to better serve business needs. Finally. The primary reason training is considered optional by so many business owners is because it's viewed more as an expense than an investment. which can lead to increased membership and influence. Now contrast that approach to one where training's viewed as a capital investment with thoughtful consideration as to how you're going to obtain an acceptable rate of return on your . Third. business owners frequently send their people to training courses that seem right and sound good without knowing what to expect in return. it enables the organization to contribute to the development of a country's human capital. the knowledge required for training increases the quality of other services provided by the organization . it's almost impossible to view training as anything more than an expense. advisory and representation services. training and development aren't focused on producing a targeted result for the business.policy lobbying. Second. As a result. Fifth..Importance of Developing a Role in Training in banking sector Developing a national role in training is important for an employers' organization for several reasons.a viewpoint that can be costly to both short-term profits and long-term progress. But without measurable results.. This is completely understandable when you realize that in many companies. Fourth. It also enables it to influence employers in regard to the need for them to invest more in training and employee development . it improves the overall image of the organization and invests it with a degree of professionalism. Many entrepreneurs seem to view employee training and development as more optional than essential. it contributes to better human relations at the enterprise level and therefore to better enterprise performance. Sixth.which employers should recognize as one key to their competitiveness in the future. First. through its influence on education policies and systems and training by public training institutions. it compels its own staff to improve their knowledge without which they cannot offer training to enterprises through their own staff. especially in industrial relations in respect of which sources of training for employers in developing countries are few.

. And a business learns as its people learn. As you go through this analysis. Common areas for improvement in many companies is helping supervisors better manage for performance. This orientation should introduce employees to your company. represent a potential for upside gain in your business. As it relates to training and development. "What's going to change in my business or in the behavior or performance of my employees as a result of this training that's going to help my company?" Be forewarned: This exercise requires you to take time to think it through and focus more on your processes than your products. Third. year in. The next step is to establish a learning dynamic for your company. Determining your training and development needs based on targeted results is only the beginning. begin by clearly communicating your expectation that employees should take the steps necessary to hone their skills to stay on top of their professions or fields of work. Second. and provide them with proper training in the successful procedures your company's developed and learned over time. refine. consider the strengths and weaknesses in your company and try to identify the deficiencies that. then you're going to fall behind. needs analysis is really an outcome analysis--what do you want out of this training? Ask yourself. Make sure you support their efforts in this area by supplying the resources they need to accomplish this goal. And a good place to start your "thoughtful consideration" is with a needs analysis. Your employees are the ones that produce. when corrected. including your learning culture.investment. In today's economy. provide a sound introduction and orientation to your company's culture. communicate to your employees the specific training needs and targeted results you've established as a result of your needs analysis. continual learning is critical to your business's continued success. year out. To create a learning culture in your business. but they aren't trained as managers to help their subordinates achieve peak performance. With the rapid pace and international reach of the 21st century marketplace. Many people are promoted into managerial positions because they're technically good at their jobs. deliver and manage your products or services every day. to any new employees you hire. if your business isn't learning. protect.

But if the training budget isn't related to specific outcomes. Have you spent time thoughtfully examining the style of leadership that's most successful in your environment and that you want to promote? What steps are you taking to develop those important leadership traits in your people? Financial considerations related to training can be perplexing. and you'll reap rewards that pay off now and for years to come. Your employees are your principle business asset.Every successful training and development program also includes a component that addresses your current and future leadership needs. and in bad times. not other budget-related factors. companies tend to spend money on training that's not significant to the organization. In good times. the training expense should be determined by the targeted business results you want. To help counter this tendency. then you're more likely to be happy with what you spend on training. training budgets are solely a function of whether the company is enjoying an economic upswing or enduring a downturn. In any economic environment. In many organizations. then money is more likely to be spent on courses that have no positive impact on the company. . learning and leadership). At its core. sit down and assess your training and development needs once or twice a year to identify your needs and brainstorm how to achieve your desired results effectively and efficiently. the pendulum swings to the other extreme and training is eliminated altogether. but in most cases. the true budgetary impact depends on how well you manage the first three components (needs analysis. this component must provide for the systematic identification and development of your managers in terms of the leadership style that drives your business and makes it unique and profitable. If your training is targeted to specific business results. Invest in them thoughtfully and strategically.

the ± Job.Methods of training in banking sector A multitude of techniques are used to train employees. its purpose and the desired outcomes. Long lectures can also cause Boredom. Training techniques represent the medium of imparting skills and knowledge to employees. It also improves the quality of presentation to a great extent. This method includes slides. 1) Lectures It is the verbal presentation of information by an instructor to a large audience. It has several steps. However. They are basically of two types. Also this type of communication is a oneway communication and there is no feedback from the audience because in case of very large groups it is difficult to have interactive sessions. video tapes and films. The trainer then demonstrates how the job is to be performed and to give trainee a model to copy. as when experienced worker shows a trainee how to perform tasks. And since a model is given to the trainee. Majority of the industrial training is on the job training. the trainee first receives an overview of the job. 3) On. OHPs. the transferability to the job is . 2) Audio Visuals This is an extension of the lecture method. Often. A virtue in this method is that it can be used for large groups and hence the cost of training per employee is very low.Training It is used primarily to teach workers how to do their present jobs. the focus of trainer¶s focus is on making a good product and not on good training technique. it is informal. They can be used to provide a range of realistic examples of job conditions and situations in the condensed period of time. this method violates the principle of learning by practice. In this method. It is conducted at the work site and in the context of the job. Training techniques are means employed in the training methods. The lecturer is presumed to possess knowledge about the subject.

facts.very high. manuals and machinery is very high. training is offered without the intervention of the trainer. Feedback in the form of correct answers is provided after each response. 5) Computer Assisted Instruction (CAI) This is an extension of the PI method. This method is most widely used in Aeronautical Industry. in form of books or through teaching machine. the learner¶s response determines the frequency and difficulty level of the next frame. Information is provided to the employee in blocks. Allowing the person to respond Providing feedback on the accuracy of the answers If the answers are correct. Thus PI involves: y y y y Presenting questions. In this method. . Also the cost of preparing books. memory and the data manipulation capabilities of the computer. The trainee repeats these jobs until the job is mastered. he proceeds to the next block or else. 4) Programmed Instruction (PI) In this method. This is possible thanks to the speed. the trainee goes through a test/ answers a question. repeats the same. Then the employee is allowed to mimic the trainer¶s example. It is an attempt to create a realistic for decision-making. 6) Simulation It is any equipment or technique that duplicates as nearly as the possible the actual conditions encountered at the job. After going through each block of material. and problems to the learner. However it is an impersonal method and the scope of learning is less as compared to other methods of training.

The emphasis is placed on learning skills than on production. It is an ideal method to promote decision making skills. 9) Role Playing and Behavior Modeling This method mainly focuses on emotional (human relation) issues than other ones. They also provide transference to an extent. Even though the kind of tension or pressure may be the same but the employee knows it is just a technique and not a real situation. Many a times only the result at the end of the case may be considered and not the line of thinking to approach it. which provokes the reader to think and make decisions/ suggestions. They allow participation through discussion. It is performed in a special area set aside for the purpose and not at the workplace.7) Vestibule Training This method utilizes equipment which closely resembles the actual ones used in the job. This is the most effective method of developing problem solving skills. Also additional investment is required for the equipment. Also the employees behave differently in real situations than in simulations. The essences are on creating a real life situation and have trainees assumed parts of specific personalities (mostly interchanged roles of boss and subordinate to create empathy for one another). select the best one and implement it. The trainees read the case. 8) Case study It is a written description of an actual situation in the business. The consequence is better understanding of issues from the other¶s point of view. It is however difficult to duplicate pressures and realities of actual situations. analyze it and develop alternative solutions. This is a major disadvantage since case studies must primarily be used to influence or mend the attitude or thinking of an individual. The method /approach to analysis may not be given importance. Concept of Behavior Modeling: .

11) Apprenticeships and Coaching It is involved learning from more experienced employee/s. Laboratory training is a form of group training primarily used to enhance interpersonal skills. y It also helps him see the negative consequences that result from not using the behavior as recommended. y This change may be videotaped and showed to the trainee and he can review and critique it. Examples: Laboratory training. They meet with a passive trainer and get an insight into their own behavior and that of others. Coaching is similar to apprenticeships. The objective is to provide the participants with increased awareness of their own behavior. carpenters. It can be used to develop desired behaviors for future job responsibilities. A trained professional serves as a facilitator. plumbers and mechanics. It is applied in cases of most craft workers. But it is always handled by . 10) Sensitivity Training It uses small number of trainees usually less than 12 in a group. This approach uses high levels of participation and facilitates transferability. y It is referred to as ³copying´. This method may be supplemented with other off-the-job methods for effectiveness. These meetings have no agenda and take place away from the workplace. encounter groups. The discussions focus on why participants behave the way they do and how others perceive them. y ³Vicarious process´ learning takes place not by own experience but by observation or imagination of others¶ action. the perception of others about them and increased understanding of group process.y Fundamental psychological process by which new patterns of behavior can be acquired and existing ones can be altered. However once the training is over employees get back to being the way they are. ³observational learning´ or ³imitation´ implying that it a behavior is learned or modified through observation of other¶s experiences.

training programmers have grown into corporate with these goals in mind. feedback and job transference is very high.a supervisor and not by the HR department. This field is however. Business performance rises and falls with the ebb and flow of human performances. not a destination. But in that case. more stress is laid on productivity. . but it is still young. The ultimate goal of training is to develop appropriate talent in the workforce internally. inadequate use of personnel after training etc. Dissatisfaction persists and is growing at the working level where the benefits of training should show up most clearly. Training programmers should enhance performance and enrich the contributions of the workforce. training has entered a dangerous phase in its development. structures and budgets. Training & Evaluation in banking sector Training Improving business performance is a journey. In India. This disillusionment shows in many ways ± reluctance to send the most promising people for training. With disillusionment mounting in the midst of expansion. the focus is on learning. It is very similar to on the job training method. Complaints are growing over its ineffectiveness and waste. Training has made significant contributions to development of all kinds. doubts arise over its contribution in practice. training as an activity has been going on as a distinct field with its own roles. whereas here. expanding fast but controversy seems to envelop any attempts to find benefits commensurate with the escalating costs of training. In this method skilled workforce is maintained ± since the participation. Over the years. HR professionals lead the search for ways to enhance the effectiveness of employees in their jobs today and prepare them for tomorrow. The training apparatus and costs have multiplied but not its benefits. Immediate returns can be expected from training ± almost as soon as the training is over the desired outcomes can be seen in the trainee. The person being trained is called understudy. Training is essential.

At the same time. The training process is made up of three phases: Phase 1: Pre-training. the proper focus right from the very outset is on one or more people ± on-the-job-in-the-organization ± this whole amalgam. on the other. This assumption is itself a striking illustration of the wide gulf that separates the two. on the one hand. Focusing training on skill in action makes the task wide and complex. and training near the later. no promise can be ignored. the limited resources available in these countries make this contribution hard to come by. The difference lies in what people have learned that they now apply. The searchlight of inquiry may make the task and challenges stand out too starkly.Training is neither a panacea for all ills nor is it a waste of time. The contribution that training can make to development is needed acutely and obviously. no waste is permissible. selection of suitable participants. the starting point becomes the focus again at the end. no matter which. Much of the training provided today proceeds as if knowledge and action were directly related. Using experience with training in India and other rapidly developing countries has this advantage at similar risk. These lines are sharply drawn. An organization¶s concerns before training lie mainly in four areas: Clarifying the precise objectives of training and the use the organization expects to make of the participants after training. What is required is an insight into what training can or cannot do and skill in designing and carrying out training effectively and economically. This may also be called the preparation phase. too simply. in terms of more effective behavior is the measure of the efficacy of training. Training embraces an understanding of the complex processes by which various factors that make up a situation interact. On a continuum with personal maturation and growth at one end and improvement in performance of predetermined tasks at the other. The process starts with an understanding of the situation requiring more effective behavior. That difference. education lies near the former. Wherever the focus moves during the training programmers. For every training strategy. building favorable expectations and motivation in the participants prior to the .

. and a training institution¶s basic task is to provide the necessary opportunities. This may be called the "follow up" phase. If they do not find it useful. they try it again. the situation changes. Having explored. they incorporate this new facet into their habitual behavior in the training situation. But the main purpose remains: participants explore in a training situation what interests them. In the simplest training process. During the course of the training. participants try out some new behavior. stimulating and engaging. If they find the new behavior useful. Finally. The newly learned skills undergo modification to fit the work situation. check it for effectiveness and satisfaction. On the other hand. Participants may find their organizations offering encouragement to use the training and also support for continuing contact with the training institution. or discontinue learning in this direction. There is no guarantee that the participants will in fact learn what they have chosen. When the participants return back to work from the training. try some variant. Phase 3: Post-training. a process of adjustment begins for everyone involved. It is important that work organizations meanwhile prepare the conditions for improved performance by their participants upon their return.training. The intricate process of selection and testing is continuous and more or less conscious. they may step into a quagmire of negativity. More effective behavior of people on the job in the organization is the primary objective of the training process as a whole. participants focus their attention on the new impressions that seem useful. try it repeatedly and improve it. When training per se concludes. Phase 2: Training. improvement is a dependent variable. and planning for any changes that improved task performance will require in addition to training. and participants and organizations independent variables. they discard it.

giving and receiving feedback and coaching. However.The training process has the following major objectives: 1) Improvement in Performance Training will be an important aid to managers for developing themselves as well as their subordinates. This would have the effect of improving the morale of the existing employees. building teams. . improving inter-group relations and quality of work life. observing. Training can bring about an improvement in a person¶s:  Knowledge  Skills  Attitude  Thereby raising his potential to perform better on the job. training can contribute the vital 20% that makes the difference. experiencing. which comes from doing. The ultimate objective of training in the long run is to improve the company¶s performance through people performing better. Research has shown that 80% of a person¶s development takes place on the job. 3) Organizational Effectiveness In company training provides a means for bringing about organizational development. It is not a substitute for development on the job. 2) Growth Training is also directed towards developing people for higher levels of responsibility thereby reducing the need for recruiting people from outside. It can be used for strengthening values.

earlier or later in the company calendar  Leave well alone The following are the clear benefits of evaluation:  Improved quality of training activities  Improved ability of the trainers to relate inputs to output  Better discrimination of training activities between those that are worthy of support and those that should be dropped  Better integration of training offered and on the job development  Better co-operation between trainers and line-managers in the development of staff  Evidence of the contribution that training and development activities are making to the organization  Closer integration of training aims and organizational objectives . new content.Benefits of Training Evaluation in banking sector Evaluation has three main purposes: Feedback to help trainers understand the extent to which objectives are being met and the effectiveness of particular learning activities ± as an aid to continuous improvement Control to make sure training policy and practice are aligned with organizational goals and delivering cost-effective solutions to organizational issues Intervention to raise awareness of key issues such as pre-course and post-course briefing and the selection of delegates Evaluation is itself a learning process. Training which has been planned and delivered is reflected on. new pre-course work  Rethink the timing of the training ± earlier or later in people¶s career. earlier or later in the training programmers. new trainer  Redesign the preparation/pre-work ± new briefing material. Views on how to do it better are formulated and tested . new methods.The outcome may be to:  Abandon the training  Redesign the training ± new sequence.

reflects the fundamental importance of training and learning for those organizations that hope to prosper in the new millennium. The rend towards a more "empowering" style of management and an increasing emphasis on self-development have combined to bring about a move away from didactic instruction towards coaching and facilitation and away from "trainer" towards "performance improvement consultant". knowledge and experience of their people. the internet and multi-media training Emphasis on cross-cultural development Remote learning to reflect changing patterns of work .The Way Ahead The development of learning organizations. the following trends are likely to be seen: Increased use of virtual reality. working to harness the brainpower. In the coming future.

This is an important prerequisite to staff undertaking the second role of an employers' organization in training. the training and development of its own staff.e. This is essential to the effectiveness of the organization's training services as well as to the other services it provides members. to make its other services more effective) involves mostly the acquisition of knowledge needed for staff to perform their functions. First and foremost it must be viewed from an "internal" point of view i.The Training Role Internal Training The role of an employers' organization in training has to be viewed from different perspectives. all of which fall within the following: y Influencing the legal and policy environment needed for business growth and development y Direct services to members This requires that the staff be trained in the areas of the organization's services and core competencies which may include areas such as: y y y y Industrial relations Human resource management Occupational safety and health Information analysis and research for:  Influencing the policy environment  Transferring knowledge to members  Undertaking wage and other surveys  Training Services This objective of training (i. which is to provide training to members (and sometimes to nonmembers) in areas in which they expect .e.

services. in training techniques or methodologies. workplace mechanisms to improve workplace relations and human resource management policies and practices such as: y y y y y Recruitment. selection. But unlike in the case of the first objective of training earlier referred to. occasionally of other trainers. Examples include negotiation.e.related problems and issues To instill in enterprise managers the skills needed to improve their management of people Where enterprises have a training department. . If staff do not develop training skills y y They will be able to transfer knowledge But not the skills to apply the knowledge to particular situations which arise in enterprises (productivity is increasingly the application of knowledge). It follows that the staff of employers' organizations are not themselves practitioners in people management. this second role or objective requires not only knowledge in the areas of training. induction Performance appraisal Leadership and motivation Employee retention Wage and salary determination The main objectives of this second training role (to provide training to members) are: y y y To provide members with the means to address labor . They are trainers of those engaged in managing people and. but also training skills i. to train their personnel.

the environment needed for business development etc. y Initiating or promoting teacher education programmers to impart to them knowledge about the role of business in society. y Influencing government. and even basic management in occupational safety and health and environmental management. This could be affected in a variety of ways: y y Through representation on the policy boards of national training institutions. Employers' organizations could form executive training committees within the organization such as the Education Committee in the Japan Federation of Employers' Associations. Influencing course content e. Unique pilot programmers were commenced in 1992 on "Teacher Placement in Industry" and "Management Course for Secondary School Principals". the Industrial Education and Training Committee in the Korean Employers' Federation and the Committee on Manpower and Development in the Singapore National Employers' Federation. management course contents to include more human relations management subjects. Identifying employers' education and skills needs and providing feed back from employers. and involves influencing national educational and skills training policies and schemes. At the initiative of the New Zealand Employers' Federation the School-Industry Links Development Board was established in 1990 to strengthen the relationship between secondary schools and business.g.Influencing National Policies and Programmers The third role is one to be discharged at the national level. . education and training authorities to correct inappropriate policies and to commence preparing for the future education and training needs if HRD policies are to have impact. y y Promoting closer links between employers and educational and training institutions.

Numerous examples in countries abound which can provide useful ideas to employers' organizations. marketing and production. an employers' organization should be able to influence the provision of training incentives to be offered to employers. through the tax system or training levies.Other Roles A fourth role is for an employers' organization to raise awareness among employers of the need for increased investment in the development of human capital as an essential condition for achieving competiveness. Eight. . especially in the areas of the employers' organization's expertise y y Upgrading the knowledge of company trainers Maintaining a directory of relevant training programmers/courses Seventh. This role could also be undertaken through training support given to professional bodies like an institute of personnel management. an employers' organization could develop training material to be used by enterprises for in-house training. A sixth role for an employers' organization is the provision of advisory services to member companies by y Assisting trainers in enterprises to develop or improve their in-house training programmers. A fifth role is in the training of personnel or human resource managers. given the fact that their role still tends to be downgraded relative to other management functions such as finance.

drives. . as it is with regard to customers. and expectations of people we hire or employ. Before going any further. drives. This is what they are. It is as important to research and study the needs. and acknowledge their contribution to the business success. This holds true not only for the people we hire on a regular basis.The First Step towards Motivation at Work However large or small a company or business is. We must acknowledge them as human beings with individual needs. let us shift our approach from grouping people under the generic category of "employee" to individual human beings and term them as "hired workers" or "working partners". and aim at responding to and satisfying those.Understanding Employee Drives and Motivations . characteristics. analyzing and planning an adequate response to employees' motivations deserves first place in the order of business. but also for temporary and contracted workers. personalities. considering the role each "employee" plays in a company's success. it is employees at all levels that can make or break it. In actual fact.

people's basic needs are the same. clothing and other basics to survive Safety Needs: a safe and non-threatening work environment. safe equipment and installations Social Needs: contact and friendship with fellow-workers. social activities and opportunities . job security. drives. as illustrated by Abraham Maslow in the following model: SelfActualization Ego Social Needs Safety Needs Physiological Needs MASLOW'S HIERARCHY OF NEEDS Maslow explains the Hierarchy of Needs as applied to workers roughly as follows: Physiological Needs Basic physical needs: the ability to acquire food. and capabilities.Though each person has specific needs. at varying degrees of intensity. shelter. aspirations.

Inner drives 2. line of study.Ego: recognition. a particular job. Save for and enjoy old age security benefits 3. but to exceed them . emotionally. the employer not only tries to satisfy these basic needs. It is only when these needs are met that workers are morally. Be acknowledged and rewarded for special efforts and contributions . use as guidelines in our efforts to help employees feel motivated. It is these drives that Maslow delineates in his hierarchy of needs. and even physically ready to satisfy the needs of the employer and the customers. or other activity (such as travel or recreation). Earn wages that will enable them to pay for basic necessities and additional luxuries such as the purchase of a home. The outer (external) motivators are the mirror image the employer or outside world offers in response to the inner drives.taking into consideration additional extraordinary needs individual workers have. Most workers need to: 1. and which we must understand and internalize. same as in his/her dealings with customers. Win recognition 6. Acquire friends at work 5. Have medical and other insurance coverage 4. Worker motivation must also be viewed from two perspectives: 1. Outer (external) motivators. or travel 2. A person's inner drives push and propel him/her towards an employer. acknowledgment. reaching the heights of one's gifts and talents. In order to attract the "cream of the crop" of available workers. career. rewards Self-Actualization: realizing one's dreams and potential.

Company/ business information 19. Adequate pay 3. A stable. Clear and organized work procedures 7. Reward and recognition programs 13. Clear company policies 6. Systematic feedback 16.7. Realize their ideals. Be able to advance in life and career-wise 8. Incentive programs 14. Medical coverage and other benefits 10. Open lines of communication (formal and informal) 15. flexible work schedules) 4. A safe work environment 9. Opportunities for promotion 18. The employer responds to those needs by offering and providing: 1. Information on customer feedback 20. Future expectations 23. An atmosphere of teamwork and cooperation 11. Sharing of company goals and objectives a 21. Have opportunities for self-development 9. Improve their skills. Job security (to the degree possible) 5. Plans for the future . Information on the market situation and industry 22. Employment 2. Demonstrate and use special gifts and abilities 11. just and fair work environment 8. knowledge. Training and development programs 17. Social activities 12. and know-how 10. transportation. Assistance to workers for their special needs (such as child care arrangements.

adult workers have expectations from their employer . procedures. In addition to needs and drives. leading to exhaustion. overtime. and deficient work performance y y A desperate financial need for additional overtime and weekend remuneration Premature expectations of swift promotions. for which company policies should be planned accordingly: y If the company is in a remote location. expert employer Clear and fair policies. or weekends Heavy financial responsibilities which he/she can meet only by working at two jobs. all employees will have a need for more social activities y y Many single people look for dates and spouses at work Some women may not be ready to work late shifts unless the employer provides transportation back home y Some workers may have a problem with drug or alcohol abuse. and employment practices Business integrity Clear job descriptions Two-way communications Effective management and supervision Positive discipline Good company repute . An employee may have: y y Family responsibilities and be unable to work shifts. It is important that the employer discover other extraordinary needs applicants have before hiring them and know beforehand whether he/she can satisfy those needs or not.they expect: y y y y y y y y A knowledgeable. Some other needs the employer can expect. Guidance and mentoring. "sick leave". experienced.24.

and security. Once they feel confident that the employer and their place of work is what they wished for and expected. without expectations of change in routine or opportunities for advancement. the absence of turnover quickly results in de-motivation since the possibility of motion and forward-motion is taken away from employees. They consider their work as a major factor that shapes their lives and the lives of those dear to them. teamwork. they are ready to contribute above and beyond "the call of duty". Most of these needs. mistakenly believe that employee motivation can be won through monetary rewards or other perks. Business owners and managers are under constant scrutiny by the people they hire. when seen from another angle. including human resources directors. Adult workers care beyond the salary .it is up to the employer to develop a good system of company communications. day out. employee relations. Following a reading or lecture on the subject. in a good work environment.y y y y y Good customer relations Company survival Opportunities for personal growth Company growth A share in the company's success. A professional and unified management. managers sometimes implement "job enrichment" in a misguided manner. Cross-Training as a motivational and problem-solving Technique Many managers. is the basis on which to build employee motivation. cooperation. reputation. It is against human nature to remain static. and motivation that will benefit all the parties involved. adding unrewarded responsibilities on the shoulders of their supervisors . performing the same duties day in. expectations and aspirations are unexpressed . They learn soon enough that such perks are taken for granted and that money is not the key to employee motivation.they care to know to whom they entrust their fate. training and development that will lead to an environment of openness. While high employee turnover reflects on low morale and lack of motivation.

Food & Beverage. employees can have one day training in the role of department head ("King for the Day"). be encouraged to give feedback and make suggestions for improvement. covering all positions and departments. Sales. This technique achieves the following objectives: y y y y y y y y y Prevents stagnation Offers a learning and professional development opportunity Rejuvenates all departments Improves understanding of the different departments and the hotel as a whole Leads to better coordination and teamwork Erases differences. department heads can take roles replacing him. skills and work performance Improves overall motivation Leads to the sharing of organizational goals and objectives. Housekeeping should cross-train in Front Office and vice-versa. This results in a feeling of exploitation and has the reverse of the intended An effective training technique which results in motivation is cross-training. know-how. Department heads. This has to be an effective planned process. Public Relations. Marketing & Sales in Front Office. When a General Manager is away. effect. It should begin with supervisory level and filter down to entry-level positions. With background support. Human Resources in different departments and vice versa. . Sending people to work in another department at a moment's notice is not what cross-training is about. Employees must "buy" into the idea. Banquets. which is a form of cross-training. enmity and unhealthy competition Increases knowledge. Food & Beverage Service in the Culinary department and vice versa. It should be incorporated in a hotel's master yearly training plan. assistants and employees can crosstrain in different departments or within the department itself. when implemented horizontally. Food & Beverage. Purchasing. Front Office in Marketing. upward and downward. Security. Cross-training should be carefully planned and presented as a learning opportunity.and employees. They become "partners".

With job rotation. management and guests. These two techniques lead to great motivation throughout the company. albeit temporarily. can easily replace each other when needed and who gain new confidence regarding their professional expertise. the employee's role is of a different nature. or obligations). Union representatives can be made to understand that company-wide cross-training involves substantial investment in time. Details must be coordinated with the "receiving" department head. Unionized properties face some difficulty in implementing such techniques due to the rigidity of Union policies and labor agreements. shape up and usually return to their positions as exemplary performers. They return to their job with a better attitude. The trainee is incorporated within the department's activities for the duration of the cross-training (briefings. Employees enjoy the rewards of added know-how. When employees think "the grass is greener on the other side of the lawn" they soon realize their mistake after exposure to other departments. but is responsible over certain job functions. skills. .Departmental communications meetings can be used to share lessons learned. Depending on the budget at hand and the objectives to be achieved. It is up to management to win over Unions on this concept and convince them of the benefits to employees' careers. the time for cross-training can vary from one day to a week or more. for which he has to prove himself. A more sophisticated form of cross-training is job rotation. which usually involves extended periods (from one month to six months). career opportunities and future security due to business success. meetings. are enjoyed by the three main stakeholders: employees. Both cross-training and job rotation create a team of workers who are more knowledgeable. however. effort and payroll. they hear "warning bells". The benefits. He is not considered as trainee. Cross-training can also be used to "shake up" supervisors or employees who have lapsed into poor performance. Upon being moved to a different position or department.

this would usually be the most practical since it is unrealistic to expect employers¶ organizations to develop the level of skills needed in all the areas of training. Where training is conducted by the staff of the employers' organization it follows that it must have a comparative advantage in the subject matter of the training. In order to have that advantage the staff should . Training may be affected in three ways y y By the employers' organization's own staff By external persons or institutions the employers' organization may contract with to conduct training y By a combination of both the above methods.Developing the Organization's Training Function Pre-requisites There are certain prerequisites essential to undertaking a training role in relation to members. Even in courses conducted by the organization trainers or resource persons can be used for selected subjects to enrich the programmers.

especially since in many countries such . Another is human resource management. However. This involves not only a sound information and research base and staff with the requisite knowledge. workplace labor relations practices. The first is the transference of information and knowledge needed by enterprises to make decisions in labor related areas. This requires the first and third prerequisites referred to. Identifying Areas of Training Specialization Employers' organizations do not usually offer training in all areas of management (e.y y Have the requisite knowledge in the subject matter Be trained as trainers. general management. and marketing) because y These are specialized areas requiring knowledge in subjects outside the mandate of an employers' organization y Such training is provided by other institutions like business schools and polytechnics which specially cater to these training needs. although this is not critical in all cases. y Be supported by an up to date information and research base. The above mentioned pre-requisites underline the two types of training an employers' organization might undertake. An example is negotiation skills on which business education institutions in some countries have highly effective programmers. It is a subject in which it can develop a comparative advantage. and skills in training may not be particularly critical though undoubtedly useful. finance. in some areas training undertaken by employers' organizations and other institutions overlap. Therefore it is important for employers' organizations to develop an expertise in training in industrial relations (laws. the training needs to go beyond knowledge-transference and demonstrate how to translate the relevant knowledge into practice. but also staff with training skills. For instance. in order to have an impact on enterprises in the management of people. conducting courses on the application of the labor laws requires knowledge of the subject matter. However. and negotiation).g. wages.

This should be a priority as it is the labor relations role which. b. more than any other. However. Even if other institutions do. An increasingly important target group is the small enterprise sector which. The ILO has developed the Improve Your Business (IYB) programmers which are a system of inter-related training packages and supporting materials for providing owners and managers of small enterprises with training in basic business management skills. Establishing Training Priorities The employers' organization should establish a priority table in respect of the areas in which it wishes to y y Itself provide the training Act only in a subsidiary capacity by. usually lacks a human resource manager or a training policy and in house training facilities. collaborating with external institutions or individuals. Industrial Relations and Labor Law.training is seldom offered by other institutions. they may lack the practical experience employers' organizations develop if they provide direct services to members. Personnel and Human Resource Management. Since one of the main objectives of HRM is to integrate it with the functions of line managers. Training in this area helps to strengthen personal departments and human resource management functions. for instance. A special needs assessment may have to be conducted in this sector as its needs tend to differ from those of large and medium scale enterprises. HRM training should be made available to all enterprise managers. training in . unlike the large scale sector. distinguishes an employers' organization from other employer bodies. y Provide training material Some of the areas in which an employers' organization can undertake training are: a.

g. Strangely. Considerable impact can be achieved through the design and conduct of training programmers for particular enterprises at plant level as it facilitates addressing a particular enterprise's needs. largely through training to achieve sound industrial relations and in HRM practices which promote productivity improvement. This often neglected area of training is an important means of improving workplace labor relations and productivity. The latter type of programmers also has a reasonable chance of attracting senior managers who are in a position to influence the company's policies. . as it is difficult to build a comparative advantage without external assistance. Cross-cultural management training. Negotiation and negotiation skills. such as interpreting relevant laws and training safety committees in enterprises.e. practices and culture. However. Productivity bargaining and performance and skills based pay systems are a part of an employers' organization's mandate directly linked to productivity. Training should not take the form of only collective training programmers i. f. for personnel from several different enterprises. An employers' organization could develop a limited role. there is scope for the development of training programmers for foreign personnel designed to acquaint them with local practices and cultural factors relevant to managing local employees. In the context of increasing investment in countries from both within and outside the region and the apparent proliferation of disputes flowing from cross-cultural "mismanagement".this field may require linking up with institutions which are qualified in this regard. c. local employees also need to adjust to the management requirements and styles of foreign companies. d. This is important not only for the conduct of collective bargaining but also for enterprise managers in their frequent interactions with their employees and other enterprises. Increasingly. this has been a much neglected area of training. it requires quite a mastery of local systems. Supervisory training. Productivity. Safety and health. e. The ILO has developed a supervisory training module which has been found useful by enterprises. Here a limited role is possible.

As a brief review of terms. studying the management of the training function of employers' organizations which have developed an excellence in training y y y Improving the organization's information/research/knowledge base Developing training courses and materials Where necessary entering into arrangements with outside individuals or institutions to design and/or conduct training programmers y y Appointing a training manager. .Equipping the Organization for Training The organization should equip itself to perform a training role. training involves an expert working with learners to transfer to them certain areas of knowledge or skills to improve in their current jobs. this involves the followings: y Analyzing the organization's strengths and weaknesses in training in the light of the needs assessment surveys and identification of the areas of training. Development is a broad. Among other things. often to perform some job or new role in the future. ongoing multi-faceted set of activities (training activities among them) to bring someone or an organization up to another threshold of performance. y y Training the staff in training skills Where relevant. or at least a person to plan and coordinate the training Acquisition of the training equipment needed.

personal work at office. personal décor and good rapport. Such training encompasses oral.Topics of Employee Training 1) Corporate ethics: This covers the value of good manners. redundancy etc. Right from the way the receptionist handles a call to how the CEO deals with a customer gives a glimpse of the image of an organization. controversies. courtesy. concise. concrete and colorful. rush jobs etc. consideration. written and presentation skills. It stresses the importance of communication being clear. 2) Communications: The increasing diversity of today's workforce brings a wide variety of languages and customs. retirement. and includes techniques to value diversity . 3) Career and life planning: A primarily employee-oriented training objective u undertaken to help employees plan for their lives. 4) Computer skills: Computer skills are becoming a necessity for conducting administrative and office tasks. 5) Customer service: Increased competition in today's global marketplace makes it critical that employees understand and meet the needs of customers. Such training imparts the values of life skills that employees need under different and difficult circumstances. career. It also shows why and how to discourage gossip. 6) Diversity: Diversity training usually includes explanation about how people have different perspectives and views.

role incompatibility. it may occur due to role conflict. It also includes interpersonal relationship skills Communication is a two-way exercise and this objective covers the importance of listening. but can also be useful with practical advice for avoiding assaults. especially about what are inappropriate behaviors.. 13) Sexual harassment: Sexual harassment training usually includes careful description of the organization's policies about sexual harassment. Stress management techniques are covered under this objective. Quality Circles. repetitive activities. role overload or role under load. 10) Human relations: The increased stresses of today's workplace can include misunderstandings and conflict. 14) Memory skills: This objective highlights techniques for better reception. etc. retention and recall through audio and visual learning techniques. benchmarking. etc. 11) Quality initiatives: Initiatives such as Total Quality Management. It helps to improve skills by employing all . delegation and prioritization. showing empathy and selfawareness. concentrating. hazardous chemicals. 12) Safety: Safety training is critical where working with heavy equipment. 9) Time management: Time management skills covered here showcase the importance of being specific.7) Staff management and team building: Such training shows the importance and benefits of good management and how everyone can achieve more through teamwork. relevant and time-bound goals. They also show how to set measurable. 8) Stress management: Stress is an individual¶s response to threats and challenges in the environment. Training can people to get along in the workplace. Manifested physiologically and physically. attainable. etc. guidelines and standards for quality. require basic training about quality concepts.. etc. role ambiguity.

These may include technology training. keeping them motivated and up-to-date with industry trends and new technologies is essential to achieving that goal. But before one invests it is important to choose a trainer who is good and capable of making a positive difference with his or her training methodologies. organizations also impart special job-related skills. Research shows that productivity increases while training takes place. Also organizational training needs to be undertaken keeping the mission and the vision statement of the organization in view. technical training. quality assessments etc. associating and following systematic review plans. report writing. Training your staff. 15) Special skills: Besides the above. . Benefits from Employee Training and Development Regardless of the size or type of an industry or business. Staying competitive is the key to sustainability. training can have a measurable impact on performance and the bottom line. An organization may choose to impart training in any or many of the objectives mentioned above. Staffs who receive formal training can be 230 per cent more productive than untrained colleagues who are working in the same role.senses.

 The flow-on effect The benefits of training in one area can flow through to all levels of an organization. particularly during induction.  Improved quality and productivity Training that meets both staff and employer needs can increase the quality and flexibility of a business¶s services by fostering: y y y Accuracy and efficiency Good work safety practices Better customer service. leading to lower insurance premiums . Successful training is focused on supporting your business objectives.Staff benefit too. training programs have reduced staff turnover by 70 per cent and led to a return on investment of 7. learning new skills and becoming a valued asset in any organization.  Staff retention Training increases staff retention which is a significant cost saving.000 per cent. as the loss of one competent person can be the equivalent of one year's pay and benefits. High labor productivity increases business output and can open a greater share of the market or expand it by improving products. Ongoing training almost always shows a positive return on investment. services and reputations. Training brings direct benefits to business and can be calculated as a return on investment. In some companies. training will boost the bottom line and reduce costs by decreasing: y y y Wasted time and materials Maintenance costs of machinery and equipment Workplace accidents. Over time. Most businesses provide on-the-job training.

e. work practices and business strategies can also act as a benchmark for future recruitment and quality assurance practices. Increased employee motivation 3.. Reduced employee turnover 7. Training staff to manage the implementation of new technology. resulting in financial gain 4. Increased job satisfaction and morale among employees 2. diversity training . training about sexual harassment. As well as impacting on business profit margins. e. These reasons include: 1. Increased efficiencies in processes. Increased capacity to adopt new technologies and methods 5. training can improve: y y y y Staff morale and satisfaction 'Soft skills' such as inter-staff communication and leadership Time management Customer satisfaction There are numerous sources of on-line information about training and development.. conducting ethics training (not a good reason for ethics training!) 8. Several of these sites (they're listed later on in this library) suggest reasons for supervisors to conduct training among employees.g.g. Staying competitive Businesses must continually change their work practices and infrastructure to stay competitive in a global market.y y y Recruitment costs through the internal promotion of skilled staff Absenteeism. Risk management. Increased innovation in strategies and products 6. Enhanced company image.

Companies that have a healthy training culture report the following benefits: y y y y y y y y y Improved quality Increased productivity Greater flexibility and responsiveness to change Reduced insurance premiums Less wastage Reduced maintenance and repair costs Greater commitment from staff Higher staff retention rate Improved morale. Perhaps the most important benefit of a healthy training culture is that the skills of your staff are formally recognized and that your employees feel that their contribution to the company is valued. .