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Training

Training is the systematic process by which employees learn the knowledge, skills, and/or attitudes (KSAs) necessary to do their jobs. Because training is systematic, it is distinct from other ways in which employees acquire new KSAs, such as through experience or serendipitous learning.

Training is different than employee development. Training addresses KSAs in one's current job, whereas developmental efforts enable employees to target KSAs that may be useful in some future job. This distinction, though, is sometimes fuzzy. A training course on basic supervisory skills may be both a training experience for new supervisors and a developmental experience for entry-level employees seeking promotion.

Training is ubiquitous. Whenever a new employee is hired, that individual is likely to go through some form of orientation, formal training on core job responsibilities, and informal training to learn the ropes from a supervisor or more proficient coworkers. All of these activities are considered training. Several professional organizations, including the American Society for Training and Development (ASTD), publish periodic reports on training-related activities by U.S. employers. According to their reports, the average number of hours of formal learning by employees ranges from 25 to 30 for smaller organizations to 35 to 40 for larger organizations. These organizations typically spend about $800 to $1,300 per employee (depending on the size of the organization).

Training Activities

Classic models of training development generally include four steps in the training process:

  • Needs assessment. During this step, the organizational need and support for training is identified and the training content is defined.
  • Training development. During this step, the training content is determined and decisions are made about the appropriate training method (e.g., how should material be conveyed? How long should the training last?).
  • Training delivery. During this step, trainees complete the training program. Training may be on-the-job, in a classroom, online, or through workbooks, or offered in some other format.
  • Training evaluation. During this step, the organization evaluates the effectiveness of the training program during training and/or back on the job.

Value of Training

Recently, several researchers have begun to investigate the impact of various human resource practices, including training, on financial indicators of organizational performance. The financial impact of training was the focus of a recent multiyear study by ASTD of more than 2,500 organizations. Organizational effectiveness was assessed by total shareholder return (TSR)—a composite of change in stock price and dividends issued. Their study offered strong support for the impact of training, reporting the following findings:

  • When firms were ranked on training expenditures, firms in the upper half had a TSR 86% higher than firms in the lower half, and 45% higher than the market average.
  • When firms were ranked on per-employee expenditures, firms in the upper fourth of the distribution had higher profit margins (by 24%) and higher peremployee income (by 218%) than firms ranked in the lower fourth.

Although more research is necessary to establish causal relationships between organizational performance and investments in training or training quality, research to date demonstrates the value of training to organizations.

Training Effectiveness

Given preliminary evidence that training works, it is important that training be designed to maximize employee learning of job-related KSAs. Psychological research over the years has resulted in a number of principles related to effective training. These include the

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