Running Head: HRM
Employees Training and Development Program
Introduction
For the productivity and efficiency of the organization, the training and development of employees are most important term for the HR management of the organization because of its direct impacts in the performance of the organization. HR management of each team makes the strategy of training and development of the employees on the basis of the some consideration (Dearborn, 2013). In this context, this paper will examine the impact of employee training and development on organizational profits and the budgetary considerations in human resources. For this, I have selected my organization XYZ, which has tried to convert its business processes from a small organization to a larger organization. For this, HR management of the organization has asked by the top management to explore about the benefits and advantages of the employees training and development program for the employees and the budgetary consideration for the initial training process to ensure the regular development of the employees till the growth and development of the employees.
Benefits of Employee Training and Development
Followings are some benefits of the training and development for the employees that are given below:
- New knowledge and skills can be gained;
- Employees can enhance the existing level of knowledge and skills. Through the help of this, the employees can be able to enhance or update them to improve their strengths and address the weakness in a positive manner (Wexley & Latham, 2002);
- Training and development improve the competency, capability and confidence level of employees and change their workplace learning (Dearborn, 2013);
- Employees feel supportive environment for their career (Wilson, 2005);
- Employees can enhance the performance within and outside of the organization that also enhances the individual and team performance;
Impact of Employee Training and Development on Organizational Profits
Training and development program of my organization gives some organizational profits that are given below:
Keep up employeesā performance with changes in industry:
Each business industry is facing drastic growth and changes within the internal and external environment due to the changes in the rules and regular made by the government and other governing bodies, changes in the competition level and changes in the customersā demand (Wexley & Latham, 2002). Therefore, XYZ has to change existing performance level of employees by improving their learning level. This situation also needs the changes in the organizational practices to keep business activities to avoid the situation of being left behind competitors (Dearborn, 2013). This situation also makes affect the profitability of the organization. Therefore, the organization gives the ongoing training to each employee of the organization which makes sure that the knowledge and skills of employees should be up-to-date an employee may be ready to face changes in the industry in a profitable manner (Wilson, 2005).
Improve their skills and competencies:
Employees of XYZ are facing issues in doing performance within change working environment. Therefore, the training and development plan of my organization should have to include the training to the employees that can help them to match with the needs to handle the new technology within the organization. Through this, the employees of organization may ensure that the internal environment of the organization is in favor to adopt advanced technology that may not only help the organization to rung with the changes in the external business environment (Stern & Ritzen, 2012). It will also help in improving efficiency and efficacy of the employees that make positive impacts on their performance and engagement level (Wexley & Latham, 2002). Through this, the organization may increase its output as well as the profits because both are mutually interrelated.
Increase in productivity:
The training and development program of the XYZ does not only facilitate the employees to understand more and to do more but it also helps them to gain confidence over their tasks and given responsibilities that reflect the improvement in the competency (Wexley & Latham, 2002). Through this, the organization may be able to produce quality products that will satisfy the customersā needs and desires.
Understand organizational expectations
XYZ wants to ensure that each employee of the organization will work in the favor and the best interest of the business as well as customers. In this context, the training and development of employees facilitates the HR management of the organization to motivate the employees to understand the expectations of the owner from them and how they can help the owner by serving the customers. It is also a process that can be helped an organization to the minimize the feeling of the employees related to the disappointment that can increase the employee’s loyalty because development program of employees help the employees to address their expectations (Stern & Ritzen, 2012). As a result the employee can be able to meet the needs of the organization as soon as possible.
Attract new talent
Employee training and development facilitate the organization to provide an effective workplace environment to the organization. Through the help of this, the organization can provide a progressive environment in which each employee can ensure the best possible career to the employees (Wilson, 2005). At present, the flow of employees within XYZ is high. Through the help of this, the employees make the positive image of the organization in the market. On the basis of this, the organization will not face the high flow of the employees. Through the help of the reduction in flow of employees, the organization may also face the positive growth of the employees which also makes positive impacts on the profits of the organization (Pruitt & Condit 2014). This is because the low flow of employees does not require a huge investment on the new employees such as training to define the organizational expectations from them.
Maintain skills and knowledge
Due to the changes in the organization, the employees of XYZ need to manage the skills and knowledge level. In this context, training and development facilitates the employees to get the new learning and knowledge related to the job responsibilities given by the organization to them. With the help of this, the employees cannot only maintain their skills and required knowledge but also help the employees to retain their existing performance level (Wexley & Latham, 2002). Through the help of this, the employees can also retain their engagement in the organizational practices that impacts positively on the performance of the organization.
Job satisfaction
For the profits of the organization, it is most important that employees should take complete engagement in the organizational activities. In this context, the training and development of employees helps the HR managers to increase the job satisfaction level of the employees. Job satisfaction positively improves the employee’s motivation towards the best performance (Wilson, 2005). On the other hand, XYZ feels the reduction in the productivity because of the poor job satisfaction because of the changes in the organizational environment. Therefore, XYZ has to change existing performance level of employees. It is also an aspect to reduce employeesā turnover and make increment in the productivity level that also improves the organizationās profitability. With the help of this, the organization can retain itself in the competition of the market.
Budgetary Considerations in Human Resources
It is a well known fact that the formulation of the right employee training and development program increases the engagement of employee, retention, and productivity. It also reduces the needs of supervision, reduces workplace absenteeism; makes improvement in customer service, reduces the employeeās complaints, and also ensure the positive growth of sales.
The funds which are allocated by the HR department demonstrate the return on investment which issued by the organization to fulfill its mission. It means, the HR budget articulates the overall performance of the organization under the process of the mission of the company. If the HR budget for the training and development of the employees meets the each possible criteria of the management, it is a very tough task for the management of the decision makers of the organization to reject the plan (Wilson, 2005). Further, the theory of employee development defines that the trained employees do not make mistakes in their work and also helps other employees in dealing with the customers.
And because trained employees feel appreciated and valued, then it can be stated that the regular training and development may increase the personal confidences and commitment of the employees towards the job (Sims, 2002). Hence, it can be stated that the employees training and development process within the organization help the HR management to create an effective and appealing workplace environment that will minimize the turnover of the staff. In this context, followings are some training and development process with the possible expenses that are given below:
Training and Development Budget for Employees
Budgeting consideration for training and development of employees does not indicate using additional money to the organization when this money is available to the organization. Instead, the organization should have to make a separate segment of the budget for attaining the objectives such as accommodating the need for employee training into the yearly budget (Wilson, 2005). In this context, budget consideration will include the following functions that are given below:
Training delivery
This function may include the classes on related subject areas, video tutorials related to technology adaptation, e-learning, and other types of courses. These are some methods that can help the organization to deliver training and development of the employees.
Training materials
Each training program will need the training materials that can be included printed materials, videos, and handout. These materials cannot need a huge cost as per the comparison of its profits to them. It will also help employees to develop their understanding towards their performance and the expectations of the organization.
Staff time
Each training and development program will need time. It may reduce the organizational productivity. Therefore, the organization should also have to make a training plan in which the employees will attain the training process after their job or at the workplace during the job. For this, the organization may compensate for them because their productivity will improve the performance of the organization also (Sims, 2002). HR management should provide the training to employees in the batches that will help in the management of the organizational productivity as well as the productivity of the employees.
Instructorās Hiring
An employee training and development plan may not be possible without the hiring of the instructor. Therefore, the organization should have to hire an instructor for that the organization should need to make the payment. After hiring, HR management will not face the issues because the trainer will train the employees as per the rules and regulations of the company. Hiring of a trainer will need to time and budget (Stern & Ritzen, 2012). Therefore, HR managers should have to make the list of the trainers who will help the organization in achieving their objectives.
Travel, lodging and meal expenses
Budget consideration for the training and development also includes the expenses that should have to spend the budget on lodging, travelling, and meal and without these expenses; the organization may not get the involvement of the employees in organizational work (Sims, 2002). These are some important part of the training related accommodation that facilitates the employees to attract the employees to take participation in the training activities after the job.
Ongoing trainings
These training methods are also helped the organization to follow up the performance level of the organization as per the needs of the industry. In this context, the organization may also plan the regular improvement in the performance of the training as well as development that cannot be possible through the help of additional type of the training method (Wilson, 2005). In this process, the organization may also prepare a pool of trained employees for achieving the future objectives.
| Training and development | Relative cost |
| Coaching and monitoring (on-the-job) | $… |
| Self-directed study | $…. |
| Video presentations | $…. |
| e-learning | $…. |
| In-house training (Consultant training) | $…. |
| Seminars | $….. |
| Group workshops | $…… |
Figure: 1 Features of Training and Development of Employees
(Source: Stern & Ritzen, 2012)
Conclusion
On the basis of above discussion, it can be stated that the training and development played positive impacts on the organizational profits because of its positive influences on the productivity, performance, and efficiency. Training and development budget also reduced the possibilities of error within the workplace and enhances the accuracy and quality of the outputs of the organization such as products and services. For the development of the training and development program for the employees, the HR management of the organization considered several aspects related to the organization to ensure the effective planning and maximum utilization of resources to enhance organizational outputs.
References
Dearborn, J. (2013). Redefining Workplace Learning For The 21st Century. Forbes.
Pruitt, J.D. & Condit, R. (2014). Level Headed: Inside the Walls of One of the Greatest Turnaround Stories of the 21st Century. USA: Wheatmark, Inc.
Sims, R.R. (2002). Organizational Success Through Effective Human Resources Management. London: Greenwood Publishing Group.
Stern, D. & Ritzen, J. (2012). Market Failure in Training?: New Economic Analysis and Evidence on Training of Adult Employees. London: Springer Science & Business Media.
Wexley, K.N. & Latham, G.P. (2002). Developing and Training Human Resources in Organizations. Prentice Hall.
Wilson, J.P. (2005). Human Resource Development: Learning & Training for Individuals & Organizations. London: Kogan Page Publishers.
