Ideas & Insights
Paywings's perspective on Payroll & Related
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In an ever changing and fast paced corporate world, the significance of training and development is increasing manifold.
Training and development is one of the lowest things on the priority list of most companies. When it’s organized, it is often at the persistence of the human resources department. There is, however, enormous value in organizing proper training and development sessions for employees. Training allows employees to acquire new skills, sharpen existing ones, perform better, increase productivity and be better leaders. Since a company is the sum total of what employees achieve individually, organizations should do everything in their power to ensure that employees perform at their peak.
Here are a few reasons that demonstrate the importance of training and development.
Orientation for the new hires
Training is particularly important for new employees on the day when they join. This can be conducted by someone within the company and should serve as a platform to get new employees up to speed with the processes of the company and address any skill gaps.
Every individual has some shortcomings and training and development helps employees iron them out. For example, in a company called RateGain , the entire headcount has been divided into several groups to provide focused training which is relevant to those groups – sales training, first time managers, middle management, senior leadership, executive leadership.
Helps improve employee performance
If shortcomings and weaknesses are addressed, it is obvious that an employee’s performance improves. Training and development, however, also goes on to amplify your strengths and acquire new skill sets. It is important for a company to break down the training and development needs to target relevant individuals.
Brings in Employee satisfaction
A company that invests in training and development generally tends to have satisfied employees. However, the exercise has to be relevant to the employees and one from which they can learn and take back something. It will be futile if training and development become tedious and dull, and employees attend it merely because they have to. As a company, we stress on industry specific training and send many employees for international seminars and conferences that can be beneficial to them.
Help scale up productivity
In a rapidly evolving landscape, productivity is not only dependent on employees, but also on the technology they use. Training and development goes a long way in getting employees up to date with new technology, use existing ones better and then discard the outdated ones. This goes a long way in getting things done efficiently and in the most productive way.
Imbibe a self-driven culture
Employees who have attended the right trainings need lesser supervision and guidance. Training develops necessary skill sets in employees and enable them to address tasks independently. This also allows supervisors and management to focus on more pressing areas.
To transform the company into a learning organization and encourage a culture of continual learning among employees, a programme has been launched for training and development initiative called ‘RateGain Lighthouse’. It is called as lighthouse, as it symbolizes strength, guidance and direction. We conduct various in-house training sessions on knowledge-building and skills & process.
Training and development programs can have a huge impact on a company. Like every other function in your company, training and development should be focused on producing targeted and tangible results for the business. The key is to treat it seriously and consider it a capital investment and make it results-driven.
Training and Development in SMEs in Indian Context
Strengthening the internal capabilities of SMEs has become a top priority nowadays and is positioned as an alternative or supplementary strategy for SME development. Training is recognized as an important tool for developing the internal capabilities of SMEs. However, research in the Western countries has shown that even though trainers, consultants and policy-makers consider training as an important tool for SME development, the SMEs themselves do not feel so. a survey in Bangalore (India) to assess the training needs of SMEs, as perceived by themselves .This study is especially relevant as there are no other similar studies undertaken in India so far. The survey was conducted among 300 randomly selected SME units in Bangalore. The survey questionnaire enquired about the perceived need for training and the preferences for the topics, duration, timings, costs, training providers, etc. The findings show that the training-related attitudes and behaviour of SMEs are not very different from what is observed by the Western researchers. The overall finding of positive relationships of enterprise characteristics and the ‘acquired’ characteristics of entrepreneurs with the perception of training need suggests that training need perception is more a function of the developmental stage of the enterprise than the personal preferences of the entrepreneur. Specific findings of the study are discussed and their theoretical and practical implications .
Small and Medium Enterprises (SMEs) play a very important role in the development of the Indian economy. This sector contributes nearly 40% to the GDP and employs about half of the labour force of the country. With the ongoing liberalization and globalization of the Indian Economy, SMEs face an increasing competition from the Global markets. Today’s global market expect reasonably priced, high quality products delivered on time. To meet this requirement, SMEs need an educated and well-trained work force. It is believed that training is a powerful agent to facilitate a firm’s expansion and the development of its capabilities, thus enhancing profitability (Cosh, Duncan, and Hughes, 1998). Hence, there is a need to provide training to the employees of Small and Medium Enterprises. Both policy makers and academicians believe that enhancing the competency of employees through Training and Development in SMEs can lead to a marked improvement in their business performance. To determine whether training programs produce real benefits for Small and Medium-size enterprises (SMEs), there is a need to evaluate the effectiveness of the training programmes. Even though the evaluation is a very important stage for a successful Training and Development (T&D) programme, this activity is the most neglected and problematic. As a result, T&D has been considered in many organizations as a waste of money and time. Despite the growing importance of SME research during the last decade, very little attention has been paid to the evaluation of the effectiveness of training programs in SMEs.