Effective Training & Development (Edexcel GCSE Business)

• Businesses need to make sure that new and existing staff are trained and developed appropriately
• • Training is the teaching of new skills
  • Development is the improvement of existing skills
     

•  A well-trained workforce is important for several reasons
  • Well-trained staff are likely to be more productive
  • Staff may feel valued if a business invests in training and development
  • Staff are more likely to be flexible and resilient in the face of change

 

Formal & Informal Training

• Businesses have a range of formal and informal training options for employees
• The type of training employees undertake will depend upon the finance and timescale available as well as the specific needs of the business and employee

 

Formal and Informal Training

Type of Training	Explanation	Benefits	Drawbacks
Formal	Training that is structured and has specific objectives Examples include certificated courses and apprenticeships It is likely to be delivered outside of the business by experts	Experts are likely to deliver high-quality training Employees can focus on learning if they are away from the workplace	It is likely to be expensive A member of staff is taken away from the workplace
Informal	Training that is less structured and takes place as and when required Examples include observing or shadowing other employees It is usually delivered during working hours within the business by colleagues	It is focused on the specific skills needs of the business It is quick and inexpensive to implement Trainees are able to ask questions and ask for demonstrations to be repeated	It relies on the expertise and communication skills of the trainer Productivity of both the trainee and the trainer is likely to be lower during training

  

Self Learning

• Improvements in technology and the increasing availability of vocational courses has made self learning an attractive option for businesses
• • It involves workers studying or practising skills without the presence of a teacher of trainer
  • It can take place outside of normal working hours and if online it can be undertaken anywhere
  • Workers can learn at their own pace
  • Feedback is unlikely to be immediate and trainees cannot easily ask questions

  

Induction Training

• Induction training is usually delivered as soon as possible after new workers join a business and can involve several elements
    

Common elements of induction training
  

Ongoing Training

• Ongoing training is provided to workers throughout their career and is a key way to continuously improve productivity as they understand how to fulfil their job roles effectively
  • It ensures that workers stay up to date with working practises
  • It allows skills to be improved
  • It reminds employees of business priorities

  

Target Setting & Performance Reviews

• Training and development is usually linked to targets for employees to aim for and is a key part of the performance management process
  • Targets may be negotiated between an employee and their supervisor who ensures that training targets support business objectives
  • Progress towards targets and further training needs are discussed during performance review meetings which are usually held annually
  • The successfully completion of training can support a worker's application for promotion or increased pay

• Businesses invest time and money into training and developing workers for several sound business reasons
   

Reasons for training and development

 

• As technology develops, ongoing training is essential to ensure workers are able to use it effectively

• • Specialist staff may attend technology-specific external courses some of which may be provided by the supplier of the technology
  • Employees may be encouraged to keep up to date by following technology news and blogs, attending conferences or joining industry groups and forums
      

Training, Motivation & Retention

• Businesses use training and development to motivate their employees and improve retention of workers
  
  
• The staff retention rate is calculated using the formula and is expressed as a percentage
  
  

 

• A high percentage indicates that a business is successful in retaining its workers

 

• Well-trained employees are likely to be motivated because they recognise that their employer is spending money on their development
  
  
• Motivation theory (Section 2.5.4) suggests that employees work more enthusiastically at the things they’re good at 

• • For example, if employees are trained in managing quality they are more likely to think about how to improve the standard of the goods they produce
     

• If motivation is improved through better training labour retention is also likely to increase

• • If an employee feels they’re becoming better at their job they are far more likely to stay with the business even if another employee is offering higher rates of pay because they want to keep developing in the job they have