What Is Training and Development in HRM? Complete Guide
We've all heard the saying, "employees are a company's greatest asset." If that’s the case, it only makes sense to take care of your greatest asset, right? Additionally, preserving your assets is good, but being able to grow them is better. The same goes for employees in your company.
As you'll soon find out, investing in your employees will lead to growth in many other areas as well. This includes cash flow, productivity, and product quality.
Employee training might just be the key to your company’s sustained success. That’s exactly why we put together this guide to training and development in in your human capital management system.
What is training and development in HRM?
Training and development in Human Resource Management (HRM) refers to a system of educating employees within a company. It includes various tools, instructions, and activities designed to improve employee performance. It's an opportunity for employees to increase their knowledge and upgrade their skills.
History of training and development
To understand training and development a bit better, let's go back in time and look at it through a historical lensOpens in a new tab. It all started during the World War II period in the United States. All of a sudden, the need for skilled workers started growing.
It was at this time that the U.S. labor movement was established. This movement largely contributed to the rise of employee training and development.
In the early 1900s, corporation schools were formed to provide production workers with the needed skills for their tasks. It was also at this time that people started using personal computers to train employees.
This computer-based training became the foundation of today's modern employee training systems.
Trends in training and development
After getting to know its past, you're probably curious about the current state of training and development. Is it any different than it was a century ago? Are there any significant changes in the way training is conducted, including approaches like train the trainer?
If you agree with those questions, it's time to get updated on the latest trends in training and development. Let's take a glance at what's currently happening in the field. We'll also get a sneak peek at where our current training programs are headed for the future.
Here are some training and development trends to watch out for:
- Self-paced online employee training and development programs
- Training on the management of virtual teams
- Personalized training programs based on employees' needs
- Mobile app training programs
- Usage of knowledge-sharing systems for all employees
- Retraining and reskilling to keep up with changing technology
- The widespread availability of online learning courses
- Training for first-time managers and leaders
- Training on diversity and inclusionOpens in a new tab
- Collection of employee data to improve training programs
- Interactive training programs and walkthroughs
- Training with real-time feedback from employees
Purpose of training and development in HRM
An organization that invests in its employees will most likely reap the rewards of improved financial performance. One significant statisticOpens in a new tab from the Association for Talent Development (ATD) proves this.
Their research shows that the companies with higher employee training expenditures reported 218% more income per employee. They also experienced 24% higher profit margins.
Employee training and development isn't just for earnings growth, though. Below are the purposes of training and development in HRM:
1. Increase company productivity
You might want to consider upskilling your employees. Training them to use advanced tools and technology might improve their efficiency. Moreover, being more confident in their abilities will make them more motivated to work.
Also, they'll be able to face challenges and adapt to changes quickly. Aside from that, you’ll also be promoting a culture of learning in your workplace. The act of learning together can help your employees bond with each other better.
All of these factors might contribute greatly to your company's productivity.
2. Improve product or service quality
Training and development programs are an opportunity for experts within your organization to share their techniques. Within a short span of time, employees will get to learn tips and best practices for their work.
This will allow them to create better products or provide more satisfying services. Additionally, adequate training of employees involves giving them the same set of instructions. This leads to uniformity in their methods and output.
3. Lessen employee turnover
Research has shown that training and development has a positive impactOpens in a new tab on employee turnover. Workers will surely appreciate your company's investment in their development. This will strengthen their sense of job satisfaction, belongingness, and commitment.
Training and development programs might also lead them to have a better relationship with the organization. As a result, it’ll decrease their intentions to leave and increase your company's workforce retention. It's a win-win situation for everyone.
4. Decrease costs and errors
If your company has highly trained employees, there are few to no mistakes being made every day. As a result, less time and resources are spent on redoing incorrect work.
Also, product malfunctions and improper delivery of services are generally frowned upon. They might involve additional expenses, too. Properly trained employees know how to use materials efficiently. Thus, your company will spend less because waste and spoilage are minimal.
This applies to machinery as well. A trained employee will know how to take care of equipment. This will lead to lesser breakdowns and a longer lifespan for your machinery.
What is the role of HR in training and development?
The role of HR in training and development is to assist employees in reaching their highest potential.
This vital role can be fulfilled through the following functions:
- Employee guidance and mentorship
- Monitoring employee performance
- Gathering feedback and interpreting data collected
- Providing enhancement activities and educational platforms
- Supplying sufficient on-the-job training
- Boosting employee morale and motivation
- Ensuring employees' overall well-being
Furthermore, HR’s role not only involves initiating training programs. They also have to make sure that the programs are adequate and useful.
For this reason, employees’ unique learning styles must be considered in crafting programs and activities.
What are the 5 processes in training and development?
Training and Development consists of 5 related processes. These processes do not have a distinct beginning, middle, and end. Instead, they overlap with each other to fulfill their intended purpose.
The processes are:
- Assessment of training needs and resources
- Motivation of trainers and trainees
- Design of training programs and materials
- Delivery of training
- Process and outcome evaluation
When done correctly, each process can lead to significant growth in your employees. Take note, no two employees or organizations are exactly alike.
Thus, you might want to allow some flexibility and personalization when planning the training. Also, try to consider varying backgrounds, cultures, and perspectives in implementing the processes.
Examples of training and development in HRM
So, are you ready to organize your own training and development program? Not so fast! You need to decide on training programs that are best for your employees and your company's training needs.
It's worth mentioning that 92% of workersOpens in a new tab stated that the right type of training programs positively impact their job engagement. For this reason, it's best to ensure that your training and development program will be a good fit. You might want to go over these examples, first:
1. Etsy
Etsy is a company that uses an all-around approach when it comes to training and development.
According to the company's official siteOpens in a new tab, its learning and development process is based on teachings from sociology, adult learning theory, and organizational psychology, as well as its own values and culture.
Like Etsy, you too can utilize a variety of disciplines to craft a specialized form of training and development. The company also emphasizes the importance of employee feedback. In 2015, they took a step further and developed their own feedback collection program named Sonar.
2. Amazon
This successful e-commerce company has committed to upskilling more than 300,000 of its own employees. Amazon's Upskilling 2025 pledge is meant to provide workers with the training that they need to secure new and high-growth jobs for the future.
Some of the programsOpens in a new tab offered by the company are as follows:
- Machine Learning University
- Mechatronics and Robotics Apprenticeship
- Amazon Technical Apprenticeship
- User Experience Design and Research Apprenticeship
Additionally, Amazon provides over 750,000 of its operations employees with eligibility for fully funded tuition. In doing so, the company clearly values the education of its employees. It wants to prepare them for the future.
Indeed, Amazon is surely a model company when it comes to training and development.
3. AT&T
AT&T's goal is to develop a culture of continuous education and skills development. To achieve this, the company established its own internal training organization, AT&T UniversityOpens in a new tab.
This award-winning project provides mentoring sessions, career development programs, and personalized training as well. Also, the company offers tuition assistance and external learning opportunities to its employees.
Truly, AT&T's training and development programs are worth imitating.
FAQ
What are the 3 main activities of training and development?
Training, education, and development are the 3 main activitiesOpens in a new tab of training and development. Training is when your employees learn skills for a specific role or field.
Education refers to increasing workers’ knowledge to prepare for future opportunities. Lastly, development is the process of progressing from one level of ability to another.
What are the 4 types of training?
Training can be classified into 4 major types:
- Orientation training: background information and instructions given to newcomers at an organization
- Job training: programs to further enhance employees’ skills and abilities
- Promotional training: preparatory training for employees who will be moving up to higher positions
- Refresher training: training that provides employees with better practices and updated methods for their current roles
What is the difference between training and development vis-a-vis learning and development?
Training and development, usually, refers to an organizational process. It's primarily focused on improving your employees' work performance.
Meanwhile, learning and development is more employee-centric. It deals with your employees' progress and education as a whole, not just within the workplace.
Wrapping up
Congrats on making it this far! You now have a comprehensive understanding of training and development in HR. In this guide, we tackled the meaning, history, trends, and purposes of training and development.
Indeed, observing real-life examples of training programs was an eye-opening experience. We also got a glimpse of the role of HR in employee training as well.
We hope that exploring the world of training and development has enlightened you about its value. Invest in your employees today! You won’t regret it.
Good luck!