Based on various definitions presented in the literature, it can be concluded that training and development are the facilitation of the employees in learning competencies that are job-related. Training allows the employees to improve their knowledge, skills, and behaviors so that these can be applied in the daily activities of the organization. However, the situation of the marketplace is changing rapidly that have made organizations review the policies on training.
Organizations are putting continuous efforts to invest in employees that require human, time, and financial resources which results in meeting the growing demands to boost productivity, manage technology and retain talent. For these reasons, training and development programs enable organizations to sustain a competitive advantage over competitors even in periods of recession.
Training and Development
The employees have to be delivered training programs that involve more than basic skills development. These programs should present a broader perspective towards intellectual capital creation that enables the employees to develop basic skills required to perform a task and advanced skills such as the use of technology for information sharing. Training programs also make the employees understand the needs of the customers.
There is the scarcity of talent in the labor market that has made organizations consider talent management in a different manner. Employees have to understand the customers, products, and services as well as the methods of sharing knowledge.
They also need to understand the ways to creatively use the knowledge so that the customers can be served in the right manner and products can be modified based on their needs.
The whole world has recently faced an economic downturn and corporations went through massive cutbacks in budgets and spending. One of the first items in pulling back from discretional spending is training and development. After the emergence of an economic crisis, profitability declines rapidly, and production cost increases.
As such, businesses increased their emphasis on employee training and focus on developing innovative ways for delivering the training. Furthermore, to maintain profit, businesses curtail their workforce and try to perform operations with a limited workforce.
As a result, it becomes very hard to maintain quality services and satisfy customer needs. After a recession, it becomes a significant challenge for business firms to manage the cost of employees. Therefore, by implementing training and development programs, firms try to enhance employees’ productivity and efficiency.