Training and Development

Training vs. Development Training is a planned effort by companies to facilitate the learning of job-related competencies. –Focus on current job –Mainly required on company time Development is the formal education, job experiences, and background that prepares employees for future jobs. –Focus on future jobs and preparation for change –More generally applicable skills –Mainly voluntary on employee’s own time.

Training Process Needs Analysis Evaluation Training Delivery Training Design

Setting Training Objectives Align/match identified training needs with training objectives. Define objectives in specific, measurable terms: –In terms of desired employee behaviors. –In terms of the results that are expected to follow from such behaviors. Information for setting objectives should come from the organization’s performance management system.

Training Delivery Classroom instruction –By far the most common means of instruction Videotapes On-the-job training –Formal – job shadowing / apprenticeships –Informal – job rotation CBT – Computer-Based Training –Technical skills –Business simulation EPSS – Electronic Performance Support Simulations

Evaluation Level 1 – did they enjoy the training –“Smile sheets” Level 2 – did they learn anything –Pre and post tests –Follow-up evaluations Level 3 – did they transfer new skills to the job –Depends on the work environment –Needs support of boss and co-workers Level 4 – did the training impact the business –Detailed ROI study –Seldom straightforward

General vs. Specific Skills General skills are useful at all or most firms. –T&D which develops skills useful at other firms. –Increases the likelihood that employees will be bid away or “poached” for higher salaries. Specific skills are useful for only certain jobs at certain firms. –Increases job performance but does not prepare employees for future jobs.

You Paid for Grads' Skills. Now Use Them. October 15, 2001 BusinessWeek's 2001 survey say their employers should have more clearly defined how an EMBA degree would affect their career paths. No surprise, then, that recent EMBA grads report that anywhere from 40% to 70% of their classmates changed jobs during or after the program.

Tuition-Reimbursement Most “general” development provided by firms. –Broadly useful skills –Degree as a signaling mechanism 75-80% of firms provide some type of T.R. 33% Fortune’s 100 Best Companies to Work For offer 100% T.R. Typically used by 7-10% of employees

“Gold-Plated” Tuition Reimbursement Any program reimbursed. $10,000 stock bonus for completing a degree. 3 hours per week time off. Stock awards totaled $88 million since In 2001: –$45 million in tuition for 14,000 employees –$16 million in stock awards for 1,900 employees Chairman and CEO: “Our goal is to have the best-educated workforce on the planet”

Reasons to Provide T.R. Attract Quality Employees –“Employer of Choice” –Who values tuition-reimbursement? Improve Employee Skills –Engineers getting MBA’s –Stay on the “cutting-edge” Retain Skilled Employees –“Employability” or learning contract

Study Info ~10,000 full-time salaried employees. ~12,000 current and former employees were analyzed using HRIS records. ~1,000 survey responses. U.S. employees only. Tuition-reimbursement –38% salaried employees participated –9% salaried employees earned a degree

Participation in Tuition Reimbursement and Voluntary Turnover N = 12,360 Those who earned a degree split by receiving reward afterward

Promotion, Tuition-Reimbursement and Voluntary Turnover N = 12,360 χ 2 (p <.001)

Findings Tuition-reimbursement contributes to retention while taking classes and voluntary turnover after graduation. Earning a degree interacts with promotions. –Makes promotion a more powerful retention tool. –Integration with performance management and career systems is crucial. If well managed, tuition-reimbursement can: –Attract high-quality employees –Strengthen employee capabilities –Reduce turnover

Managing General Skills Development Before development –Feature development in recruiting –Clear career pathways with defined competencies –Integrated with performance management During development –Apply course material and projects to work problems –Managers should follow-up regularly with employees After development –Put the employees’ new skills to use –Reward employees for new skills –Challenge employee to apply new skills –Lateral moves and stretch assignments

When to Develop General Skills? Desired length of relationship with employee –Permanent employees and mostly full-time –Career progression Type of relationship with employees –High-involvement workplaces –“People are our most important asset” Type of skills required –High-skilled workforce –Unique skills that are not readily available Degree of technological change and innovation –“Half-life” of knowledge –Need to support change initiatives