Friday, May 14, 2010

Value of training

According to Jim Harris in his book The Learning Paradox, a number of issues would begin to appear, if company employees did not receive on-going training. In a down economy – like the one we are currently experiencing – one of the areas that is subject to cutback is training and development. This means, I think, that HR people need to know how to measure the strategic value of training in business terms. Harris suggests the following outcomes when training goes away; I suggest that these outcomes should be the basis of how we measure the value of the training we deliver:

1. Fewer skilled employees
2. Lower-quality work
3. Poor customer service
4. Higher customer turnover
5. Increased marketing costs
6. Slow corporate growth
7. Higher employee turnover
8. Higher recruitment costs
9. Reduced attraction for new employees
10. Increased IT support
11. High informal training costs
12. Increased workload
13. Increased burnout
14. Slow response to bids
15. Slow response to competition
16. Turf battles, office size and politics are valued