Business Training Works

High-Impact . High-Energy . Business Training Solutions

Understanding the Benefits of Training

Why We Do It, Why We Dont, and Why We Should
Business Training Works www.businesstrainingworks.com 9015 Katie Court Port Tobacco, MD 20677 Telephone: (301) 934-3250 Facsimile: (208) 445-5379

Understanding the Benefits of Training 2002 Business Training Works, Inc.

www.businesstrainingworks.com

About This Guide

Understanding the Benefits of Training Why We Do It, Why We Dont and Why We Should was initially presented by Kate Zabriskie, owner of Business Training Works, Inc., as a handout to a host of human resources professionals during a discussion forum which focused on the benefits of onsite training. It may be downloaded and distributed for free from www.businesstrainingworks.com.

Understanding the Benefits of Training 2002 Business Training Works, Inc.

www.businesstrainingworks.com

Self Assessment Quiz

Critical Thinking Exercise Take a few moments to answer the questions on the following quiz. The purpose of the exercise is to help you to identify your current training strengths and opportunities.

Self Assessment Quiz 1. T F Training in our organization is tied to business objectives.

2.

We have a method of identifying employees who have career development needs and a plan in place for meeting those needs.

3.

Our management understands the long-term benefits of employee training.

4.

Training is viewed as an integral part of our business.

5.

We follow up on training to ensure that objectives were met and to eliminate/reduce any remaining skill/behavior gaps.

Understanding the Benefits of Training 2002 Business Training Works, Inc.

www.businesstrainingworks.com

Training Basics
Reasons for Employee Training and Development Teaching Technical Functions Teaching Supervisory Functions Outlining Behavioral Expectations and Consequences Building Teams Indoctrinating New Staff Promoting Change Rewarding Past Performance Reducing Skill Gaps

Typical Training Blunders Distributing company policies in lieu of formal training. Relying on training that was delivered three or four years ago. Having a noninstructor deliver the training. Using a video or web-only solution. Lack of follow through. Lack of planned training. Misdiagnosis of issue. Lack of management participation.

Why We Dont Train Not Enough Time No Buy-In from Upper Management Not Enough Money Cant Measure the Results Dont Know How to Assess Needs

Benefits of Effective Training Increased Employee Motivation, Satisfaction, and Morale Increased Efficiency Reduction in Employee Turnover Increased Innovation in Strategies and Products Risk Management (e.g., Training About Sexual Harassment, Diversity Training, etc.)

Understanding the Benefits of Training 2002 Business Training Works, Inc.

www.businesstrainingworks.com

Making Training Effective A Three Step Approach

Before Training Selecting the right program to solve a specific business problem or need is critical to achieving an effective training result. Programs with limited buy-in, limited participation, or that lack a connection with a business objective are often doomed before they begin. 1. What business problem are you trying to solve? 2. Will all levels of the organization be included in the process? 3. What behaviors are you expecting to observe after the training? 4. What are you trying to preserve? 5. What obstacles will the instructor potentially face? 6. What obstacles will potentially hinder the implementation of skills learned? 7. How will you know when the training has been effective? 8. What are the consequences for employees who do not participate in the training? 9. What are the consequences for employees who do not adopt desired behaviors/show proficiency in skills taught?

During Training Even with effective pre-training planning, if the training itself lacks certain key components, it is highly unlikely that the desired objectives will be achieved. 1. Does the instructor fully understand the business problem and desired results? 2. Is the instructor a member of senior management or an experienced outside source?

Understanding the Benefits of Training 2002 Business Training Works, Inc.

www.businesstrainingworks.com

Making Training Effective A Three-Step Approach (continued)

3. Does the training start and end on time? 4. Does the training incorporate job-related practice exercises? 5. Do the participants understand that they are responsible for part of the learning process? 6. Does the instructor deliver the information in an interesting way that involves the participants? 7. Are the participants required to select and determine which concepts they will apply to their work after the training is over?

Post Training 1. Do the course evaluations reflect that learning objectives were met? 2. Do post-tests indicate that concepts were learned? 3. Are the desired skills/behaviors being exhibited and recognized on the job? 4. What gaps in performance still exist. Why?

Possible Reasons for Performance Gaps The reason for training was not properly identified and/or communicated. Training tried to be all things to all people. The needs of the participants were not met during the training. The training was impractical and examples unrealistic or unrelated. The supervisor was not involved before, during, or after the training.

Understanding the Benefits of Training 2002 Business Training Works, Inc.

www.businesstrainingworks.com

Understanding Potential Savings Generated by Training

1. 2. 3. 4. 5. 6. Reduced Errors Reduced Equipment Downtime Reduced Customer Turnover Reduced Employee Turnover Reduced Grievances Increased Revenue Collection

To calculate potential savings, it is important to set post-training goals. The following model illustrates one way to quantify training savings. Current Level of Performance 100 Customers 30% Turnover per Week $100 Average Customer Ticket 100 x 30% x $100 = $3,000 Lost Income Per Week Total Revenue Lost Per Year = $156,000

Change That Training Could Produce Goal: Reduce Customer Turnover by One Third 100 Customers 20% Turnover per Week $100 Average Customer Ticket 100 x 20% x $100 = $2,000 Lost Income Per Week Total Revenue Lost Per Year = $104,000

Potential Savings Pre-Training Total Revenue Lost Per Year = $156,000 Post-Training Total Revenue Lost Per Year = $104,000 Cost Savings = $48,000
Understanding the Benefits of Training 2002 Business Training Works, Inc. 6 www.businesstrainingworks.com

Benefits of Outsourcing Onsite Training

The Training Company Develops Program Content A Skilled Facilitator Delivers Program Content Through a Thorough Needs Assessment and Customized Program Content, Training Is Focused on Your Staff and Business Problem Cost Per Participant is Less Than Public Training Courses Instructor is Usually Available for Additional Follow Up Sales Are Not Part of the Program

Understanding the Benefits of Training 2002 Business Training Works, Inc.

www.businesstrainingworks.com

Primary Needs Assessment

1. Turnover at our organization is lower than the average for our area and industry. Strongly Agree Disagree Agree Strongly Disagree

2. Supervisors and managers know how to give constructive feedback and do it regularly with their staff. Strongly Agree Disagree Agree Strongly Disagree

3. Our hiring decisions are usually good and new employees successful at their jobs. Strongly Agree Disagree Agree Strongly Disagree

4. Our supervisors and managers follow a standard hiring procedure. They know what questions they legally can and cannot ask. Strongly Agree Disagree Agree Strongly Disagree

5. Our meetings are run efficiently and waste little time. Strongly Agree Disagree Agree Strongly Disagree

6. Our organization works well together. There is little conflict between departments. Strongly Agree Disagree Agree Strongly Disagree

7. Employees know what is expected of them and receive regular feedback regarding their performance. Strongly Agree Disagree Agree Strongly Disagree

8. Our organizations projects are usually completed on time and within the budget. Strongly Agree Disagree Agree Strongly Disagree

9. Our top performers stay with our organization and rarely leave to pursue other opportunities. Strongly Agree Disagree Agree Strongly Disagree

10. Employees who leave us rarely state poor management as their primary reason for going. Strongly Agree Disagree Agree Strongly Disagree

11. Employees are empowered to solve problems on their own without checking every detail with their managers. Strongly Agree Disagree Agree Strongly Disagree

Understanding the Benefits of Training 2002 Business Training Works, Inc.

www.businesstrainingworks.com

Primary Needs Assessment (continued)

12. Our organization is customer focused, and exceptional customer service is practiced on all levels. Strongly Agree Disagree Agree Strongly Disagree

13. Sexual harassment prevention is part of our regular training. Strongly Agree Disagree Agree Strongly Disagree

14. Our organization has a comprehensive training plan in place. Strongly Agree Disagree Agree Strongly Disagree

15. Our organization could benefit from an in-depth needs assessment. Strongly Agree Disagree Agree Strongly Disagree

Ideally, an organization answers strongly agree to each question. Onsite training can improve discrepancies.

For additional information about the benefits of onsite training, contact Business Training Works, Inc. or visit www.businesstrainingworks.com.

Understanding the Benefits of Training 2002 Business Training Works, Inc.

www.businesstrainingworks.com