Journey of Retention Through Training and Development

In the innovative environment of information and technology, employees are more motivated to learn about new innovations and knowledge. As technology obsolescence is a great danger to employees, the employees are always committed to continuous learning and development. Change introduction, change management and leading change are not easy processes for the organisations. This study will discuss about:

Data analysis will show real-life survey about T&D and conclusion will summarize the entire study.

Training need analysis:

Training need analysis (TNA) is done before every training to identify the objectives of the training secession. TNA is to judge the objectives and scopes of the future training. Why is training needed? It covers the gaps and lacking. It benefits both employees and employers. It reduces mistakes and maximizes efficiency. Training is an important concept in short-term as well as in long-term development. Training affects the employees efforts as well as employee turnover (Natalie et al., 1997). In the high technological institutes like software houses, the software developers are more committed to get maximum training and developmental opportunities. Software developers would see their dark future without growth opportunities as the software houses are the high technology sensitive institutions.

Survival Game:

The training objectives must be tied up with the objective of the business. That is why, the software developers are given up to date training about the upcoming technologies. The fear of obsolescence is very common among the software developers. Training employees is publicly good (OECD, 1993). Training provides regular and ongoing feedback to employees. Managers predict greater future as the value of training (Natalie et al., 1997). Due to training, there is flexibility to change with changing requirements. Continuous development is ensured due to regular and ongoing training. Training programs are targeted in economic uncertainty due to high employee turnover (OECD, 1993). In the high technology sensitive institutes, employees’ turnover is the main reason there is no upcoming technology training. 

Improvement in shared efficiency and quality:

As training teaches both tasks and principles at the workplace, training not only improves efficiency and quality, it is also able to improve social interaction, top to bottom communication and supervision among employees. The research proved that the untrained workers change their jobs more frequently than the trained ones (OECD, 1993; Lynch, 1991) specifically in high technology organizations. Training is the source to reduce the continuous supervision and a great source to improve quality and effectiveness. On the job as well as off the job training depends upon the nature of need.  Natalie et al. (1997) argued that in best economic conditions an organization must decide the budget for on the job training and learning. He also concluded if the firm within industry fails to train, then the whole economy suffers. In the modern environment, there is a third kind of training program that is introduced in the name of decision making training. Decision making training program is introduced for the purpose of limited empowerment for employees at the workplace.  As trained workers produce higher rates (Natalie et al., 1997), by having limited empowerment they are more able to decide and perform in the competitive working environment. All these three kinds of training programs are imperative now a day in the software houses. The software houses want to have the best and up to date technical resource with the full ability.

Training and employee turnover:

Trained workers can migrate easily between competing firms (Natalie et al., 1997) if required. The contribution level of the employees improves after training (Natalie et al., 1997), in other words the empowerment improves Software house has the threat from their competitors. The trained and talented staff is often stolen by the competitors. Dynamics in the training and turnover creates organizational and employee level dilemmas (Natalie et al., 1997). The training and turnover are inversely proportional to each other. The negative correlation is found between training and turnover of employees (Hequet, 1993). The investments in the training are imperative among the high technology organizations. The organizations have improved their retention rate by improving the investments in the training (Natalie et al., 1997). The best training and development provider in the high technology market is the best retainer of employees. The employees themselves are very committed with the training and developmental opportunities. 

Continuous evaluation:

Training programs must be properly designed to improve performance and efficiency of employees. Training programs must be imaginative and introductive in the initial stages for the new techniques and ideas to be understood. Continuous evaluation must be there for the training programs. Continuous evaluation is the agent of continuous and positive change.  (Walter & Francis, 1981). Training evaluation is actually based on the content validity of training and its implementation (Kauffeld et al., 2010). So it must be properly managed to achieve an excellent result. Khawaja (2012) proposed that the increased satisfaction and employee development is the catalyst for job satisfaction. He also suggested that employee development is dependent factor to job satisfaction. The training and developmental need among employees of high technology organizations is rising with the sense of information and knowledge growth among employees. Training is the pathway of learning; learning creates a sense of progression that leads towards organizational commitment (Armstrong, 2009). Training and development is the true evaluator of job satisfaction, job involvement, job commitment and job retention among employees. 

Organizational Growth:

Choo & Bowley (2007) found that training improves productivity. It shows the complete involvement and commitment of the employees towards the organization. The employees specifically in the IT industry want to keep them-selves up to date with the new and innovative behaviours to manage their job. The training and developmental opportunities are very important and also improves the employees’ performance. Vemić (2007) argued that employee education and training is the best possible answer to the intricate new challenges of information and technology. He also suggested that training and development provides consistent knowledge and innovation, experience exchange, proactive behaviour, competitive edge and satisfaction to all the employees of organization. The success of the learning organizations is dependent on the level of training and development provided to employees. Training can reduce the probability of failure and affects performance (Michael & Combs, 2008). The learning organizations pay much emphasis on the training and development needs for employees. Learning comes either from experience or from training (Truelove, 2006). In the dynamic high-tech environment, the training input is imperative as food for survival. Sadler-Smith (2006) described learning as an indefinable phenomenon in many fields but training is identified for those fields. Training is systematic and a step by step process. Training shows the current level skills and needs of employees (Khawaja, 2012). In the study of the MacDonald training process, Eaglen et al. (2000) identified that the systematic training approach is to achieve the strategic organizational objectives. Training is in the direct benefit for the organizations. Learning faster than competitors may be the only chance of survival and competitive edge for the organizations (Burden & Proctor, 2000). The IT organizations which make the training and developmental needs necessary for their employees have lower chances of obsolescence in the near future. The one who is not willing to change wants to kill it-self. Acton & Golden (2003) compared the two types of firms committed with the training sessions and not committed with training sessions. The results showed that training is good to control job performance and a good motivator to control the level of stress. 

Continuous improvement:

Ahsan (2009) proposed that organizational wide training is required in the software-houses of Pakistan. He suggested that unfortunately, Pakistan software-houses are lacking in training and development programs for the employees; this lack leads towards confusion among employees to use quantitative methods. Training and development is the name of continuous improvement. The training principles must be followed in order to make the training program more meaningful and rewarding (Rocky, 2004). Lack of training and development increases employee turnover.  If there is improved and efficient input by the employers in the learning organization, then there would be enhanced effective output by employees. Therefore, the better results can be achieved through training and development strategic initiatives for  human capital.

Structure and Data Analysis

There is a structure which shows the impact of training and development for the employees. This structure (figure 1.1) is showing how training and development has directly related to improving job satisfaction, involvement and job commitment. This also has direct as well as indirect impact on employee retention. 

(figure 1.1) Impact of T&D on retention rate

Data is collected from the software houses of Pakistan to calculate the impact of training and development. Sample size is 260. A 5-scaled Likert scale is used to record the responses; strongly agree, agree, neutral, disagree and strongly disagree. Table 1.1 is showing the research questions and the frequency of the responses.

Results shows that averagely 72.84% employees of software houses are satisfied with the training and development provided by their organizations. 17.2% responded neutrally. 9.9% responded negatively about their satisfaction in training and development.

Table 1.2 is showing the correlation analysis of training and development with job satisfaction, job involvement, job commitment and employees job retention.  

The results of correlation analysis shows that training and development are highly and strongly correlated with job satisfaction, job involvement, job commitment and job retention; as the results are more towards +1. In short, the model of training and development (figure 1.1) is highly significant. 

The significance of training and development can never be ignored to achieve the desired employees growth. employees’ growth is directly linked to the employees’ job associations.

Conclusion

Training and development is a hot topic in dynamic high tech organizations. Sometimes, the instant results of training and development are difficult to explain. The alignment of training and development with shared organizational vision needs strategic initiatives. Training and development helps to attain employees job satisfaction, job involvement and job commitment. These satisfaction and involvement and commitment has an indirect impact on the employees retention in the long-run. But in the era of modern globalization, this training and development may have a direct impact on employees’ job retention. ‘What is in it for me?’ is the question of capitalization but now this question has become more imperative for employee retention. If the employees do not find any personal growth in any organization, they are less motivated and less involved. This lack may affect employees’ long run behaviours and result in employees’ job turnover. Training and development has highly and positively correlation with the employees’ satisfaction, involvement, commitment and retention rate. This correlation also signifies the long term impact of training and development and its implementation for organizational growth. 

References 

Acton, T., & Golden, W. (2003). Training the knowledge worker: a descriptive study of training practices in Irish software companies. Journal of European Industrial Training, 27(2), 137-46.

Ahsan, A. (2009). Organization Development for Revitalization of Information Technology Sector of Pakistan.

Armstrong, M. (2009). Armstrong Handbook of Human Resource Management Practice (11th ed.). London: Kogan page.

Burden, R., & Proctor, T. (2000). Creating a sustainable competitive advantage through training. Team Performance Management: An International Journal, 6(5/6), 90-6.

Choo, S., & Bowley, C. (2007). Using training and development to affect job satisfaction within franchising. ournal of Small Business and Enterprise Development, 14(2), 339-52.

Eaglen, A., Lashley, C., & Thomas, R. (2000). The benefits of training in leisure retailing: a case study of McDonald’s restaurants. Strategic Change, 9(6), 333-45.

Hequet, M. (1993). Can training stop turnover? Trianing, 30(10), 82-87.

Khawaja, F. (2012). An integrated model of training effectiveness and satisfaction with employee development interventions. Industrial and Commercial Training, 44(4), 211 – 222.

Lynch, L. (1991). the impact of private sector training on the race and the gender wage differentials and the career patterns of young workers. Final report submitted to the U.S. Department of labour, Bureau of labor statistics.

Michael, C., & Combs, G. (2008). Entrepreneurial failure:the case of franchisees. Journal of Small Business Management, 46(1), 73-90.

Natalie, S., Tad, H., & Bernardo, A. (1997). Training and Turnover in the Evolution of Organizations. Organization Science, 8(1), 84-96.

OECD. (1993). Employment Outlook. Washington, DC: OECD Publications.

Rocky, J. (2004). Employee development using adult education principles. Industrial and Commercial Training, 36(2), 79-85.

Sadler-Smith, E. (2006). Learning and Development for Managers, Perspectives from Research and Practice. Blackwell Publishing, Oxford.

Truelove, S. (2006). Training in Practice. London: CIPD.

Vemić, J. (2007). Employee training and development and the learning orgnization. Economics and Organization, 4(2), 209 – 216.

Walter, P., & Francis, W. M. (1981). A successful training program in Brazil. American Water Works Association, 73(6), 288-293.

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