EMPLOYEE TRAINING AND DEVELOPMENT

An Effective Training Program

The quality of employees and their development through training and education are major factors in determining long-term profitability of a small business. Hiring and keeping good employees is the key to the first factor. (Hiring has been discussed in the first section and retaining employees will be discussed in the third section.) If you hire and keep good employees, it is good policy to invest in the development of their skills, so they can increase their productivity.

Training often is considered for new employees only. This is a mistake because ongoing training for current employees helps them adjust to rapidly changing job requirements.

 
Purpose of Training and Development

Reasons for emphasizing the growth and development of personnel include

 

• Creating a pool of readily available and adequate replacements for personnel who may leave or move up in the organization.

• Enhancing the company's ability to adopt and use advances in technology because ofa sufficiently knowledgeable staff.

• Building a more efficient, effective and highly motivated team, which enhances the company's competitive position and improves employee morale.

• Ensuring adequate human resources for expansion into new programs.

Research has shown specific benefits that a small business receives from training and developing its workers, including:

 

• Increased productivity.

• Reduced employee turnover.

• Increased efficiency resulting in financial gains.

• Decreased need for supervision.

Employees frequently develop a greater sense of self-worth, dignity and well-being as they become more valuable to the firm and to society. Generally they will receive a greater share of the material gains that result from their increased productivity. These factors give them a sense of satisfaction through the achievement of personal and company goals.