Impact of Training and Development on Employee Performance

By Vivianna Saldanha

Employee training and development programs are crucial for a business to succeed. They’re not only beneficial for employees who have a chance to improve their skills and develop new ones, but they’re also beneficial for managers. With training and development programs managers may see enhanced productivity in their team, and an improvement in company culture. 

Furthermore, they can even increase employee retention and lower employee turnover. This is exciting, as employee turnover can be rather costly, and it is perhaps unsurprising that employees who get regular opportunities to develop, learn, and progress into different roles within an organization are more likely to stay. Development and learning are found to be among the top factors in employees remaining engaged in their roles.

But what exactly is employee development? It is the continuous effort to improve work performance through training sessions, coaching, and leadership mentoring. Whereas training is a specific event that passes new information onto employees and teaches them new skills, and is often given to new employees or employees who have recently been promoted. 

Below, we’ll go into more detail about how employee training and development improves the performance of your employees, improves productivity, assists in employee retention and decreases turnover, and how it can even improve company culture. We’ll also discuss how you can create effective training and development opportunities within your organization.

How Employee Training and Development Enhances Employee Performance?

Employee training and development programs are widely found to improve an employee’s performance. Organizations offer many training and development opportunities for their employees, whether that be online courses, or in-person courses.

The most common types of training and development opportunities offered to employees are apprenticeships, management training, mentoring programs, new employee training, and sales training.

But how exactly do these types of programs improve employee performance? 

Prepares employees for new responsibilities: Whether employees are being trained in other roles, so they can better understand the responsibilities of their colleagues and develop a more holistic approach to the organization, or they are being trained, so they can move into new roles, training and development opportunities prepares employees for new responsibilities if they ever need to take them on.

Not only do training and development programs help employees develop the skills needed for their current roles, but can teach them leadership skills and other vital knowledge needed to progress in the future. Apprenticeship is a common form of training that recruits employees as trainees with the goal to progress them to a higher role.

Teaches employees about updates in the industry and technology: Training and development programs also keep employees up to date on changes happening in their industry, and on matters such as safety, ethics, or quality standards.

They can also teach employees about updated technology and new processes, as well as how to stay safe while using these systems, i.e. being aware of cybersecurity. Being up-to-date on what is expected of them within their role and becoming comfortable with new efficient technologies leads to better outcomes all round. 

Prepares employees for remote working: As organizations move away from traditional office working, training and development focusing on working remotely effectively and teaching employees about new processes when working from home can make the transition from office working to home working smoother.

Refreshes employees’ memories: While all new employees will receive training as part of the onboarding process, it is also beneficial for more tenured employees to have refreshers on basic training. What was taught to an employee when they first joined is often easier to understand once they’re familiar with the organization and their role.

These updates also provide opportunities to refresh diversity, equity and inclusion training, and organizations often require annual training courses on issues such as legal compliance and anti-harassment policies.

Gives managers an opportunity to address performance: Training and development programs can assist managers in developing strengths and identifying weaknesses in their performance reviews.

These reviews often make suggestions on knowledge or skills which an employee should look to improve, and this can then be followed up with a training or development program. These programs also help employees identify areas in which they could improve, need support, or learn more.

Helps in developing soft skills: Employee training and development programs help to improve the soft skills that are crucial in adapting to changes in the workplace and wider society. Soft skills relate to people skills and communication skills, and how employees behave in the workplace.

Soft skills training can focus on emotional intelligence and resilience, which in turn contributes to workplace camaraderie and productivity. Which brings us onto our next point…

How Employee Training and Development Improves Productivity?

The benefits of training and development programs can also be seen in how they increase productivity. Employees who participate in effective training and development programs tend to work more efficiently, and to actually evaluate this improved productivity managers and HR departments can incorporate the below measures into their analyses.

Measure performance results: Evaluate outcomes of different tasks to determine how much an individual has improved.

Pre-training assessments and post-training assessments: Here you would have a discussion with your team members about what they expect from training and development problems, what they would like to get out of them, and how your organization can meet those expectations.

Analyzing data: You can consult data to see how much time was spent on a course, and how many people dropped out of the course to see how much employees are engaging with the programs offered. 

Polls and tests: Organising polls and competitions within training programs can gauge how much employees are engaging and learning. 

So now we know how we can measure the effectiveness of training, let’s take a closer look at how exactly training and development programs increase productivity. 

Improves task management: Training and development programs can help employees better manage tasks, both as individuals and within a team, and can also help them to develop a better understanding of processes. Once employees have developed the skills needed to perform effectively, they can spend less time trying to figure out how to complete a task.

Targets important skills: Training and development programs lets employers emphasize the skills and knowledge their employees need to have. These programs can also teach employees new skills or provide updates on existing skills that can boost productivity. 

Promotes continuous improvement: Technology is moving rapidly and bringing more demands for upskilling. Training and development meets these demands and gives employees the opportunity to learn. This also encourages innovation among employees and encourages them to take risks and make suggestions to improve processes with less supervision.

Makes individuals more confident: Not only does training and development programs make employees more confident and sure of their knowledge and skills, but it instills confidence in their managers too. This makes for a more enthusiastic team, and encourages employees to be more accountable.

Clearly defines expectations: Training and development programs can help clarify the expectations that managers and the organization at large has for its employees. It encourages a culture based on performance, where employees are set achievable goals based on clear organizational objectives.

Promotes employee engagement: When an employee feels supported by their employer, it is unsurprising that they are more engaged in their role, enthusiastic, and motivated to work to a high standard. By providing training and development programs to their employees, an organization shows it is eager to support its employees in their careers. 

How Employee Training and Development Helps To Retain Employees?

We have already mentioned how costly employee turnover is, and organizations are always eager to keep good employees on board. Providing training and development programs helps to reduce employee turnover.

Employees are more likely to move on from an organization if they feel like their employer is not engaged or invested in their training and development, and a lack of training and development is often what drives employees to seek new opportunities elsewhere. Let’s take a closer look at how training and development opportunities reduce employee turnover and encourage employee retention.

Shows commitment to employment development and promotion: Providing regular and empowering training and development opportunities helps to keep employees motivated and satisfied in their roles, and opens up opportunities for promotion. A lack of career opportunities is a big factor in why many individuals leave their current jobs for new roles. Plus, investing in training and development programs is often less costly than hiring a new employee. 

Promotes self-worth and reduces boredom: Providing opportunities is key in retaining employees. It is recommended to regularly train managers in how to keep their team members engaged and motivated, and how to make them feel appreciated. Training and development programs also help to reduce burnout, especially among long-serving employees. Providing opportunities for employees to grow and develop can rejuvenate your team and give them a fresh perspective on their work.

Promotes training as a benefit of the role: Training and development should always be seen as a huge benefit for employees, as it helps employees to feel part of the organization and develops their skills. Organizations who promote training and development programs as a benefit while recruiting are more likely to attract the best talent, encourage seasonal employees to return, and establish a positive workplace that is focused on praising others.

Employees who are given clear guidance about a role and what its processes and procedures are more likely to stay. Training and development programs help to provide this information clearly and make sure employees have the skills to carry out their roles accordingly and stick to the guidelines of the organization. 

Creating Effective Employee Training and Development Opportunities

For training and development opportunities to be effective, employers should start by determining what skills and knowledge employees need in order to meet the goals of the organization. Once these have been determined the organizations can customize their training and development plans in line with the learning styles of their employees. Below we’ll break down ways to create training and development programs that will get the best out of your employees.

Evaluate the impact on the organization: Managers should consider what effect they hope training and development programs will have on the organization. This will then determine the goals of these programs, and help organizations develop a strategy to support them.

Identify gaps in skills: Managers should also investigate how the performance of their employees is affecting the organization achieving its goals. Training should then address any gaps in skills that are impeding the progress of the organization. 

Choose learning methods: Organizations should take into account factors such as the backgrounds of their employees, their experiences, and learning preferences when creating their training and development programs. There are a couple of learning method options for training and development programs such as classroom learning, coaching and mentoring, online learning, simulations, and providing reading materials.

Assist in remote learning: Remote working is becoming more and more common and organizations need to make sure they are adjusting to that and providing training and development programs that can take place out of the office. Webinars, video conferences, and online forums help employees to learn no matter what they are. To reduce confusion, organizations should clearly outline what they expect from these experiences and set clear goals.

Assess the outcomes of training: Organizations should review their training and development programs after each activity. Assessing how employees experienced the training program and how they perform after it can help to improve these programs and encourage further learning.

Final Thoughts

Regardless of what training and development programs an organization has in place, they won’t be effective unless continuous learning is accommodated and encouraged. Organizations should support a constant-development culture that can adapt to changes in their industry and provide appropriate relevant training that arises from that.

The benefits of training and development programs have a domino effect throughout the organization. Senior management are instilled with confidence in their team and can directly influence employee performance, and employees gain more skills and become more engaged, which leads to more efficient working and job retention, and the organization sees more monetary gains because of it. 

Training and development should be forward-looking, aligning with skills needed in the workplace in the future, and that will help the organization achieve their objectives. They should also be delivered in an innovative way that aligns with updates in technology.