02. Benefits of Training and Development Programs

 by Yasodha Pathirana

Training and development programs are very important for sustain and survive in today’s business world. The importance of Training and Development programs for employees are rapidly growing and as a result of that organizations financing large amount on employee Training and Development programs. A perfect employee Training and Development program must be the mixture of knowledge, career development and goal setting. These approaches will benefit the program to be more useful for the employees and organization (Jehanzeb & Bashir, 2013 ).

Employee Benefits from Training and Development Program

1.     Employee Performance

According to (Mohd, et al., 2020) there is a positive relationship between training and employees’ performance. Training effects on behavior of employees and their working skills which resulted in enhanced employee performance and further constructive changes that serves as increase employee performance (Jehanzeb & Bashir, 2013 ). Employee performance depends on many factors like job satisfaction, knowledge and management but there is relationship between training and performance indicating that employee performance is important for the performance of the organization in which Training and Development is beneficial for the employee to improve training performance (Oluwaseun, 2018).

2.      Employee Job Satisfaction

Companies which provide Training and Development programs for their employees are achieving a high level of employee satisfaction and low employee turnover (Rahman, 2014). According to (Chaudhry, et al., 2017) when employees are trained at their high level, the employee level of satisfaction increases and stay in the organization. Furthermore (Chaudhry, et al., 2017) shows that Training and Development programs enhance the capability of job satisfaction but also help to decrease turnover plan and hiring charges.

3.     Increased Employee Productivity

Every organization need to maintain a competitive level of productivity and quality. Productivity is considered to be the most important factor in improving organization performance and company competitiveness as well as a critical long-term resource for national economic and social development (Bature, et al., 2013). Furthermore, (Kumar, 2020) concluded in his research that all the Training and Development programs of company are highly effective and beneficial to the employees in their best contribution to their personal growth and development as well to meet the organizational objective.

 Organizational Benefits from Training and Development Program

1.     High Employee Retention

Several organizations have revealed that one of the characteristics that help to retain employee is to offer them opportunities for improving their learning. Therefore, it has confirmed that there is strong relationship between employee Training and Development, and employee retention (Jehanzeb & Bashir, 2013 ). A well-structured Training and Development program contributes to a positive workplace culture, enhances job satisfaction, and provides employees with reasons to stay and grow within the organization, ultimately leading to higher retention rates.

2.      Organizational Performance

Organizations invest huge amount on the human resource capital because the performance of human resource will ultimately increase the performance of the organization. It is very necessary for any organization to give its employees training to get overall goals of the organization in a better way (Khan, et al., 2011). Training and Development initiatives create a skilled, adaptable, and motivated workforce, positively impacting various aspects of organizational performance and contributing to long-term success.

3.     Increased Profit

Organizational development affects the bottom line in a variety of ways. Through raised innovation and productivity, efficiency and profits are increased. Costs are also reduced by minimizing employee turnover and absenteeism. As organizational Development aligns objectives and focuses on development, product/service quality and employee satisfaction are increased. The culture shift to one of continuous improvement gives the company a distinct advantage in the competitive marketplace (Mewar University, 2023). Therefore, A strategic focus on Training and Development can lead to a more skilled, engaged, and efficient workforce, directly influencing various factors that contribute to increased organizational profit.

The below figure shows that the employee benefits and organizational benefits of Training and Development.

Figure 1 - Employee and Organizational Benefits from Training and Development Program

According to the above discussions it is concluded that Training and Development programs create a win-win situation for both organizations and employees by promoting a skilled, engaged workforce and contributing to overall success and satisfaction.

References

Bature, N., Friday, O. & Mustapha, A., 2013. Manpower Training and Development: A Tool for Higher Productivity in Zenith Bank Plc, Maitama Branch, Abuja. European Journal of Business and Management, Volume 5, p. 2.

Chaudhry, N. I. et al., 2017. Impact of Working Environment and Training & Development on Organization Performance Through Mediating Role of Employee Engagement and Job Satisfaction. European Journal of Training and Development Studies, 4(2), p. 38.

H, R., 2014. Training and Job Satisfaction for Organizational Effectiveness: A Case Study From The Banking Sector. Central European Business Review , 3(1), p. 28.

Jehanzeb, K. & Bashir, N. A., 2013 . Training and Development Program and Its Benefits to Employee and Organization: An Conceptual Study. European Journal of Business and Management , Volume 5, p. 245.

Khan, R., Khan, F. A. & Khan, M. A., 2011. Impact of Training and Development on Organizational Performance. Global Journal of Management and Business Research, 11(7), pp. 63-68.

Kumar, R., 2020. The Impact of Training and Development on Employees Performance and Productivity: a case study of Granules Omnichem Pvt. Ltd. Visakhapatnam. Asian Journal of Management, 11(2), pp. 174-180.

Mewar University, C. R. I., 2023. Academia.edu. [Online]
Available at: https://www.academia.edu/29970984/Training_and_Development_Program_and_its_Benefits_to_Employee_and_Organization_A_Conceptual_Study
[Accessed 16 November 2023].

Mohd, I. H., Julan, J. & Besar, T., 2020. Strategic Training and Development: The Impact on Employees’ Performance. Journal of International Business, Economics and Entrepreneurship, Volume 5 (2), p. 81.

Oluwaseun, O. O., 2018. Employee Training and Development as a Model for Organizational Success. International Journal of Engineering Technologies and Management Research , 5(3), p. 182.

Rahman, H., 2014. Training and Job Satisfaction for Organizational Effectiveness: A Case Study From The Banking Sector. Central European Business Review , 3(1), p. 28.