Should companies invest in the education of the employees?

 

“Training has the distinct role in the achievement of an organizational goal by incorporating the interests of organization and the workforce” (Stone, 2002 as in Khan et al., 2011, p.63). Training programs are essential to organizational survival and competitiveness (Knoke & Kalleberg, 1994; Liu, 2002; Wang, 2001). Thus, training programs are often the first to go activity (Young, 2008 as in Boadu et al., 2014). “One of the most frequently encountered human capital development interventions is training” (Campbell & Kuncel, 2001, p. 278).

Without a reasonable cost, there can be no profit. According to Lloyd (2002), managers are less likely to pursue training because of its high cost. Most managers consider training to be more of a cost than an investment. The claim is that it is challenging to prove a direct causal link between training and productivity. According to them, benefits are immeasurable and difficult to quantify whereas costs are real (Tremlett & Park, 1995).

Why Educating employees is necessary?

Education and training are among the most significant investments in human capital for businesses. Even while staff education and training are a typical component of the operations of many businesses, all businesses should be conscious of its significance and give it continuous attention. Education helps an organization grow by enhancing the workforce's quality, managerial expertise, and general level of knowledge at all levels of administration, manufacturing, and service within each enterprise. Businesses need to keep their workforce's skills and abilities up to date (B. Dugasová, Ľ. Bartóková, E-learning - the opportunity for SMEs, [in:] ERENET Profile, Corvinus university of Budapest, Budapest 2014).

Also, higher productivity and profit are the results of staff education and training. Additional years of education and income have a link that is among the topics in economics with the most research. Below chart displays this association, which shows that, on average, better educated workers Both salaries are higher, as are employment rates. Researchers found that higher education, whether at the postsecondary level or the elementary and secondary levels, has benefits (Angrist and Krueger 1991; Card 1995; Kane and Rouse 1995; Ashenfelter and Rouse 1998; Card 1999; Zimmerman 2014).

                                                            Source: 2015–19, American Community Survey

The main advantages of Educating staffs.

• Long-term unemployment is less likely for trained personnel.
• It has a favorable effect on the employee's reputation and position both now and in the future.
• Employees with training are less likely to be fired and terminated.

Employee training metrics.

You can make data-driven judgments by using employee training metrics in training evaluation. It eliminates bias and prevents irrational conclusions from being made. From an organizational standpoint, it establishes procedural fairness and validates any financial investment made in training. Financial performance can be measured, performance can be tracked over time, competitors' training can be benchmarked, and employees can be communicated with openly. One of the main reasons employees leave an organization is for a lack of training. It can occasionally be easy to demonstrate to staff members the worth of the investment put in them by using training measures. Sometimes, what is done matters less than how its value is expressed.

 

 

                                                                    Source: AIHR (Academy of innovate HR)

 

Conclusion

Maintaining a strong ability to adapt, competitive spirit and high performance depends on high quality staffs. All these skills can be gained by education also. Training may improve a company's image, customers' satisfaction, management succession plan, and risk management. However, training and development improves workers' abilities, attitudes, and knowledge; it also offers chances for professional advancement in the cutthroat job market. As a result, they feel appreciated, encouraged, and different from others, which encourages more commitment to their everyday tasks.

https://www.youtube.com/watch?v=Bu75iPiejio

References

Khan, R.A.G., Khan, F.A. & Khan, M. A. (2011). Impact of Training and Development on Organizational Performance. Global Journal of Management and Business Research, Vol.11, No.7, Pp.63-68.

Knoke, D., & Kalleberg, A. L. (1994). Job training in U.S. organizations. American Sociological Review, Vol.59, Pp.537-546.

Young, C. (2008 as in Boadu et al., 2014). Five tips for improving employee training and development during a recession or economic downturn, maximize possibility blog. Retrieved 01/03/2015 from http://www.ijern.com/journal/May-2014/42.pdf.

Campbell, J. P., & Kuncel, N. R. (2001). Individual and team training. In N. Anderson, D. S. Ones, H. K. Sinangil & C. Viswesvaran (Eds.), Handbook of industrial, work, and organizational psychology. London, England: SAGE.