Training, How Important is it Really?
I came across the report Gearing for Growth: Future Drivers of Corporate Productivity, recently released by RICOH (a global copier company originally from Japan – they purchased IKON in 2008). The report is based on a survey of over 350 senior executives. It is not surprising that those companies overwhelmingly see managing human capital as the most important way to improve productivity. The report also suggests that managing human capital presents challenges. Executives especially in Europe cite a lack of engagement and motivation as their biggest challenge. Doesn’t seem that different here! It is interesting to note that those same executives ranked using the best available technology as only the third most important factor in improving productivity, behind human capital and good strategic decisions.
So what is the answer? This report says Functional Training is seen as a key tool for improving productivity. Training is not usually seen in as something we want to spend a good deal of money on in our area. After all it is difficult to prove any return on investment. When the economy was booming the standard excuse for not investing in any training was ‘why bother they will just leave anyway’.
Dr. Laurie Bassi is the CEO of McBassi & Company, a consulting firm that specializes in human capital analytics. She is an economist, author, speaker and researcher. According to her; Companies that fail to invest in employees jeopardize their own success and even survival. She writes that organizations that make large investments in people typically have lower employee turnover, which is associated with higher customer satisfaction, which in turn is a driver of profitability. A second driver is manager proficiency — good managers determine if people stay or go, and this is also influenced by training and development. She further writes that the education and training variable is the most significant predictor of an organization’s success. Bassi puts her theories to the test — her and a fellow partner launched an investment firm that buys stocks in companies that invest heavily in employee training. From what I understand it is very successful.
You don’t have to go far to find excellent employee and management training in our area. If you are interested send me an email at firstname.lastname@example.org and I will point you in the right direction.
Productivity is a measure of how much – work, time, effort, money, or energy – you have to put into something to get the desired outcome. For more tips and tools on how to get more productive please visit Blue Collar Consulting Inc. at http://www.bluecollarconsulting.ca/.
Posted on October 14, 2011, in Business Productivity, motivating employees, productivity, productivity tools, training and tagged Business, Human capital, Human resources, management training, Productivity, training, value of training. Bookmark the permalink. Leave a comment.