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Instituting a Corporate Training Program

By Elizabeth M. Rice, SPHR

In today's fast-paced business world, employee training has become an essential component to maintaining a competitive edge. Training programs not only benefit the organization as a whole but help boost employee morale through enrichment of their professional development. We interviewed Norm Kamikow, editor in chief of Workforce Performance Solutions and Chief Learning Officer magazines to learn more about the benefits and implementation of corporate training programs.

While there are many reasons why an organization would choose to implement an employee training program Kamikow points out that the main impetus for doing so is to improve the capabilities of the company's workforce, thereby improving overall productivity. Specific reasons can include the introduction of a new product or service, a change in the organizational structure or the introduction of a new employee. Although the decision of whether or not to implement training programs depends on the organization, Kamikow points out that structured or unstructured training occurs in all organizations from the first day of employment to the exit interview, typically in one of four ways:

• Self-directed learning - the learner chooses the subject matter to learn and the method of learning.
  
  
• Other-directed learning - learning material and methods are chosen by someone other than the learner. For example, supervisors often times will mandate that employees attend training on diversity, company policies or sexual harassment in the workplace.
  
  
• Informal training - training with no predetermined form. For example, reading books to learn about a certain subject, talking to friends about the subject or attending a presentation.
  
  
• Formal training - training with a predetermined form. This training includes a requirement of learning results, learning objectives and activities that will achieve the results, and a measurement of the training. Examples include college courses, workshops, seminars, etc.
  
  

Traditionally training has been conducted in a physical location, however, online training courses, or e-training, has become increasingly popular. While e-training can be more affordable and convenient, factors such as the high cost of equipment, lack of face-to-face interaction and lack of honesty from online students have kept 50% of training in the traditional classroom.

Most companies take responsibility for their training programs however, some choose to outsource it to third party firms. Outsourcing the training function is attractive for some companies because it reduces operating costs thereby providing the monetary and physical resources to better manage training programs. Research conduced by The Chief Learning Officer projected that the market for training outsourcing alone will grow to $20 billion of the total $90 billion dollar training market. Whether in-house or outsourced, the average expenditure for training is roughly 2.4 percent of a company's yearly revenue.

Implementing a training program is a wise decision for any company, regardless of size. According to Kamikow, the first step you should take is to appoint a champion for the program. Often times HR takes responsibility for training but the VP of sales can also be an excellent person to lead the effort. This person should then assess the company and find where there are competency gaps and develop a plan to fill these gaps. It is also essential that your company have some basic training programs for new employees who join the company so that they can get up to speed quickly and easily.

There are many factors to consider when starting a training program; however, there is no dispute that the benefits of employee training are invaluable says Kamikow. The times are changing and people are not only looking for a paycheck, especially amongst our newest contributors to the workforce. According to a recent nationwide survey by WiseWork, a management consultant firm, 77% of Gen Xers say they'd quit in a minute if offered "increased intellectual stimulation" at another company. By providing training programs and giving employees the ability to improve their skills, they will have be happier at work, boost productivity and stay at the company longer. These benefits trickle down to the employer who will feel the effects of training programs on their bottom line.