Effective Training & Development (Edexcel GCSE Business)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
How Businesses Train & Develop Employees
Businesses need to make sure that new and existing staff are trained and developed appropriately
Training is the teaching of new skills
Development is the improvement of existing skills
A well-trained workforce is important for several reasons
Well-trained staff are likely to be more productive
Staff may feel valued if a business invests in training and development
Staff are more likely to be flexible and resilient in the face of change
Formal & Informal Training
Businesses have a range of formal and informal training options for employees
The type of training employees undertake will depend upon the finance and timescale available as well as the specific needs of the business and employee
Formal and Informal Training
Type of Training | Explanation | Benefits | Drawbacks |
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Formal |
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Informal |
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Self Learning
Improvements in technology and the increasing availability of vocational courses has made self learning an attractive option for businesses
It involves workers studying or practising skills without the presence of a teacher of trainer
It can take place outside of normal working hours and if online it can be undertaken anywhere
Workers can learn at their own pace
Feedback is unlikely to be immediate and trainees cannot easily ask questions
Induction Training
Induction training is usually delivered as soon as possible after new workers join a business and can involve several elements
Common elements of induction training
Ongoing Training
Ongoing training is provided to workers throughout their career and is a key way to continuously improve productivity as they understand how to fulfil their job roles effectively
It ensures that workers stay up to date with working practises
It allows skills to be improved
It reminds employees of business priorities
Target Setting & Performance Reviews
Training and development is usually linked to targets for employees to aim for and is a key part of the performance management process
Targets may be negotiated between an employee and their supervisor who ensures that training targets support business objectives
Progress towards targets and further training needs are discussed during performance review meetings which are usually held annually
The successfully completion of training can support a worker's application for promotion or increased pay
Why Businesses Train & Develop Employees
Businesses invest time and money into training and developing workers for several sound business reasons
Reasons for training and development
As technology develops, ongoing training is essential to ensure workers are able to use it effectively
Specialist staff may attend technology-specific external courses some of which may be provided by the supplier of the technology
Employees may be encouraged to keep up to date by following technology news and blogs, attending conferences or joining industry groups and forums
Training, Motivation & Retention
Businesses use training and development to motivate their employees and improve retention of workers
The staff retention rate is calculated using the formula and is expressed as a percentage
A high percentage indicates that a business is successful in retaining its workers
Worked Example
B&G Fabrics has a total workforce of 1,020 employees, of whom 68 are expected to leave in 2024. Calculate B&G's expected staff retention rate for 2024. (2)
Answer:
Step 1 : Calculate the number of employees remaining during the period
Step 2: Divide the number of employees remaining during the period by the total number of employees
(1 mark)
Step 3: Multiply the outcome by 100 to find the percentage
(1 mark)
93.33%
Well-trained employees are likely to be motivated because they recognise that their employer is spending money on their development
Motivation theory (Section 2.5.4) suggests that employees work more enthusiastically at the things they’re good at
For example, if employees are trained in managing quality they are more likely to think about how to improve the standard of the goods they produce
If motivation is improved through better training, labour retention is also likely to increase
If an employee feels they’re becoming better at their job, they are far more likely to stay with the business even if another employee is offering higher rates of pay because they want to keep developing in the job they have
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