Business Training Works

High-Impact . High-Energy . Business Training Solutions

Understanding the Benefits of Training

Why We Do It, Why We Dont, and Why We Should
Business Training Works
www.businesstrainingworks.com
9015 Katie Court
Port Tobacco, MD 20677
Telephone: (301) 934-3250
Facsimile: (208) 445-5379

Understanding the Benefits of Training www.businesstrainingworks.com

2002 Business Training Works, Inc.
About This Guide
Understanding the Benefits of Training Why We Do It, Why We Dont and Why
We Should was initially presented by Kate Zabriskie, owner of Business Training
Works, Inc., as a handout to a host of human resources professionals during a
discussion forum which focused on the benefits of onsite training. It may be
downloaded and distributed for free from www.businesstrainingworks.com.

Understanding the Benefits of Training 1 www.businesstrainingworks.com

2002 Business Training Works, Inc.
Self Assessment Quiz
Critical Thinking Exercise

Take a few moments to answer the

questions on the following quiz. The
purpose of the exercise is to help you to
identify your current training strengths and
opportunities.

Self Assessment Quiz

1. T F Training in our organization is tied to business objectives.

We have a method of identifying employees who have career

2. T F development needs and a plan in place for meeting those
needs.

Our management understands the long-term benefits of

3. T F
employee training.

4. T F Training is viewed as an integral part of our business.

We follow up on training to ensure that objectives were met and

5. T F
to eliminate/reduce any remaining skill/behavior gaps.

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2002 Business Training Works, Inc.
Training Basics
Reasons for Employee Training and
Development

X Teaching Technical Functions

X Teaching Supervisory Functions
X Outlining Behavioral Expectations
and Consequences
X Building Teams
X Indoctrinating New Staff
X Promoting Change
X Rewarding Past Performance
X Reducing Skill Gaps Typical Training
Blunders

Why We Dont Train Distributing

company
X Not Enough Time policies in lieu
X No Buy-In from Upper Management of formal
X Not Enough Money training.
X Cant Measure the Results Relying on
X Dont Know How to Assess Needs training that
was delivered
three or four
Benefits of Effective Training years ago.
Having a non-
X Increased Employee Motivation, Satisfaction, and instructor
Morale deliver the
X Increased Efficiency training.
X Reduction in Employee Turnover Using a video
X Increased Innovation in Strategies and Products or web-only
X Risk Management (e.g., Training About Sexual solution.
Harassment, Diversity Training, etc.) Lack of follow
through.
Lack of
planned
training.
Misdiagnosis
of issue.
Lack of
management
participation.

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2002 Business Training Works, Inc.
Making Training Effective
A Three Step Approach

Before Training

Selecting the right program to solve a specific business problem or need is

critical to achieving an effective training result. Programs with limited buy-in,
limited participation, or that lack a connection with a business objective are often
doomed before they begin.

1. What business problem are you trying to solve?

2. Will all levels of the organization be included in the process?

3. What behaviors are you expecting to observe after the training?

4. What are you trying to preserve?

5. What obstacles will the instructor potentially face?

6. What obstacles will potentially hinder the implementation of skills learned?

7. How will you know when the training has been effective?

8. What are the consequences for employees who do not participate in the
training?

9. What are the consequences for employees who do not adopt desired
behaviors/show proficiency in skills taught?

During Training

Even with effective pre-training planning, if the training itself lacks certain key
components, it is highly unlikely that the desired objectives will be achieved.

1. Does the instructor fully understand the business problem and desired
results?

2. Is the instructor a member of senior management or an experienced

outside source?

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2002 Business Training Works, Inc.
Making Training Effective
A Three-Step Approach
(continued)

3. Does the training start and end on time?

4. Does the training incorporate job-related practice exercises?

5. Do the participants understand that they are responsible for part of the
learning process?

6. Does the instructor deliver the information in an interesting way that

involves the participants?

7. Are the participants required to select and determine which concepts they
will apply to their work after the training is over?

Post Training

1. Do the course evaluations reflect that learning objectives were met?

2. Do post-tests indicate that concepts were learned?

3. Are the desired skills/behaviors being exhibited and recognized on the

job?

4. What gaps in performance still exist. Why?

Possible Reasons for Performance Gaps

X The reason for training was not properly identified

and/or communicated.
X Training tried to be all things to all people.
X The needs of the participants were not met during the
training.
X The training was impractical and examples unrealistic
or unrelated.
X The supervisor was not involved before, during, or
after the training.

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2002 Business Training Works, Inc.
Understanding Potential
Savings Generated by Training
1. Reduced Errors
2. Reduced Equipment Downtime
3. Reduced Customer Turnover
4. Reduced Employee Turnover
5. Reduced Grievances
6. Increased Revenue Collection

To calculate potential savings, it is important to set post-training goals. The

following model illustrates one way to quantify training savings.

Current Level of Performance

100 Customers
30% Turnover per Week
$100 Average Customer Ticket

100 x 30% x $100 = $3,000 Lost Income Per Week

Total Revenue Lost Per Year = $156,000

Change That Training Could Produce

Goal: Reduce Customer Turnover by One Third

100 Customers
20% Turnover per Week
$100 Average Customer Ticket

100 x 20% x $100 = $2,000 Lost Income Per Week

Total Revenue Lost Per Year = $104,000

Potential Savings

Pre-Training Total Revenue Lost Per Year = $156,000

Post-Training Total Revenue Lost Per Year = $104,000

Cost Savings = $48,000

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2002 Business Training Works, Inc.
Benefits of Outsourcing Onsite
Training
X The Training Company Develops Program Content

X A Skilled Facilitator Delivers Program Content

X Through a Thorough Needs Assessment and

Customized Program Content, Training Is Focused on
Your Staff and Business Problem

X Cost Per Participant is Less Than Public Training Courses

X Instructor is Usually Available for Additional Follow Up

X Sales Are Not Part of the Program

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2002 Business Training Works, Inc.
Primary Needs Assessment
1. Turnover at our organization is lower than the average for our area and
industry.

Strongly Agree Disagree Agree Strongly Disagree

2. Supervisors and managers know how to give constructive feedback and do it regularly
with their staff.

Strongly Agree Disagree Agree Strongly Disagree

3. Our hiring decisions are usually good and new employees successful at their jobs.

Strongly Agree Disagree Agree Strongly Disagree

4. Our supervisors and managers follow a standard hiring procedure. They know what
questions they legally can and cannot ask.

Strongly Agree Disagree Agree Strongly Disagree

5. Our meetings are run efficiently and waste little time.

Strongly Agree Disagree Agree Strongly Disagree

6. Our organization works well together. There is little conflict between departments.

Strongly Agree Disagree Agree Strongly Disagree

7. Employees know what is expected of them and receive regular feedback regarding
their performance.

Strongly Agree Disagree Agree Strongly Disagree

8. Our organizations projects are usually completed on time and within the budget.

Strongly Agree Disagree Agree Strongly Disagree

9. Our top performers stay with our organization and rarely leave to pursue other
opportunities.

Strongly Agree Disagree Agree Strongly Disagree

10. Employees who leave us rarely state poor management as their primary reason for
going.

Strongly Agree Disagree Agree Strongly Disagree

11. Employees are empowered to solve problems on their own without checking every
detail with their managers.

Strongly Agree Disagree Agree Strongly Disagree

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2002 Business Training Works, Inc.
Primary Needs Assessment
(continued)
12. Our organization is customer focused, and exceptional customer
service is practiced on all levels.

Strongly Agree Disagree Agree Strongly Disagree

13. Sexual harassment prevention is part of our regular training.

Strongly Agree Disagree Agree Strongly Disagree

14. Our organization has a comprehensive training plan in place.

Strongly Agree Disagree Agree Strongly Disagree

15. Our organization could benefit from an in-depth needs assessment.

Strongly Agree Disagree Agree Strongly Disagree

Ideally, an organization answers strongly agree to each question. Onsite training can improve
discrepancies.

For additional information about the benefits of onsite training, contact

Business Training Works, Inc. or visit www.businesstrainingworks.com.

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2002 Business Training Works, Inc.