Improving employee retention and performance through training and development

Introduction

Globalisation and technology have transformed the nature of work through redefining the competitive landscape. To achieve organisation objectives and maintain competitive advantage, it is important for companies to developed workforce through training and development. The performance of employees in the multifaceted challenging business environment is critical for the enduring success of the organisation (Noe, 2014). The goal is analyses Improving employee retention and performance through training and development

According to Noe and Tews (2014), the continuous changing environment has resulted in need for more skilled, creative, trained, flexible and innovative workforce. Therefore, training and development have two-folded benefits and importance. Employers provide training for operational efficiency and advancement and for employee development is critical for skills development and career advancement.

Background and purpose of research

The organisational need of trained and skilled workforce has forced to investigate the new way of retaining and developing competent and knowledge workforce. Therefore, companies are focusing and thinking to implement training and development activities for employee retention and performance. Training has the direct effect on the performance of the employee through increased productivity and satisfaction that increased employee retention (Bratton and Gold, 2015).

Bhatia and Kaur (2014) elaborated that the two important paradigms for companies are employee turnover and performance. The training improves employee’s competency, expertise and knowledge, and hence, it has a positive and momentous effect on employee retention and high level of performance. Training and development enable the employees to deliver high-quality service to internal and external customers through knowledge and information.

According to Anitha (2016), the employee knowledge and expertise to meet the job description and specification enable to understand regulation, policies, plans and strategies to deliver quality output, which increased employee satisfaction and commitment to the job and ultimately improved the performance of employees. The improved productivity and performance deliver both monetary and non-monetary benefit for the employee. The evaluation of improvement through training and development is useful to understand investment return for training and improve employee skills portfolio for satisfaction and performance (Ford, 2014).

The research statement for this study is

“To evaluate how training and development programme improves retention and performance among the employee in the ABC” . The goal is analyse Improving employee retention and performance through training and development

Research Aim and objectives

The aim of the study is to investigate how training and development in ABC improve employee retention and commitment as well as enhance performance. The objective is to explore the connection between training and development, employee retention and performance. (Saks and Burke, 2016)

The specific research objectives are

  • To analyse the relationship between employee retention and performance dimension in ABC
  • To assess the impact of training and development on employee performance and retention in ABC
  • To investigate mediating impact and consequences of training and development increase employee retention and performance in ABC

Significance of study in ABC context

The employees are the critical resource to achieve the objectives of the organisation and this paradigm becomes more complex in service organisations. The effect of globalisation has validated and justified the human resource development to ensure goal congruence in service organisations. The focus on the quality of service and customer satisfaction has reinforced the need of skilled, knowledge and expertise workforce. The development of employee skills portfolio has a crucial role in retention and performance of the employee. The continuous changing business environment for ABC requires training and employee development to improve knowledge and capabilities, thus, ensure employee retention, and enhance performance. The study contributes towards the improvement of ABC employee and performance through evaluating the human resource development practices. (Noe et al., 2014)

Literature Review

Training and development

According to Berman et al (2015) training involves a systematic process of knowledge and skills development, which is need of individual to perform the job adequately and satisfy the stakeholder’s needs.  In other words, training is a process of skills and knowledge of the organisation employee to perform the particular job. Therefore, training enclosed a systematic process to improve skills, attitude and knowledge in relation to the specific job.

Training upgrades the knowledge and skills to increased employee satisfaction and commitment to the job. The development of employees involves programme to achieve goal congruence through contribution towards employee and organisational effectiveness (Berman et al., 2015).

The development stages are based on reviewing and evaluating resources of organisation and needs of the individual and implementation programmes, which increase performance, and satisfaction of employee. Training and development allow developing knowledge, which enables to perform job quickly through modifying behaviour. It allows developing technical and managerial skills of individual as well as organisational growth that contribute towards profitability and effectiveness of an organisation (Bjerregaard, Haslam and Morton, 2016). The objectives of the training are categorised as follows

Employee objectivesOrganisation objective
This involves achievement of personal goals and skills portfolio development to contribute towards the objectives of the organisation.To achieve goal congruence and develop skills to meet job description and specification to perform task adequately.

Burke and Noumair (2014) explained that the training and development are important for employee and organisation. The reasons for continuous learning of new skills are moral improvement, capital improvement and adaptability to change. The upgrade skills portfolio of employee allows increasing productivity and contributing towards the objective of the organisation. The development of human capital allows increasing employee performance. Moreover, training and development allow the organisation to adapt to changing internal and external business environment (Bolman and Deal, 2015).

Training and development prepare the employees of the organisation to respond to changing business environment as well as helps the new the employees to integrate with organisation strategies and plans. Moreover, employees able to perform based on latest information and techniques in the particular field. Overall, training and development increased the operational efficiency increased productivity and quality of output (Potnuru and Sahoo, 2016).

process - training and development

Types and stages of training and development

According to Mabogunje (2015), there are two training methods which organisation used to provide training to its employees that are ‘on the job training’ and ‘off the job training’. The on-job training involves practices such as job rotation, coaching and apprenticeship.  On the other hand, off-job training includes activities based on stimulation and classroom based instruction. The off-job training activities include seminars, workshops, case studies as well as computer and behaviour modelling. (Green and Piel, 2015) The stages of training and development are enclosed below

stages of training and development

S-OJT system - training and development

Theories on training and development

Attitude and Motivation Theory

Attitudes are an important factor for proceedings and determine the behaviour of consequences to achieve desired results. Attitude theory states that training modifies results through reinforcement by setting direction. The important concepts associated with behaviour theory are congruity and strengthening concept and perception congruence theory (Hultman, Kazeminia and Ghasemi, 2015).

In addition, Claiborne and Sirgy (2015) explained that congruity highlight that assessment helps to set the direction for the common objective of congruity. The perception congruence involves modification of mind based on interrelated attitudes. The objective of attitude theory is to change the response of individual by changing individual environment through altering contingencies reinforcements.

The motivation theory suggest that behaviour is engaged with motivation forces based multiplicative function which includes expectancies about the outcome from the behaviour of individual and how important are valence of the outcome. The employees are provided training to develop skills and knowledge in order to ensure performance meet the expectations. The motivation of training is achieved through specific objective; learn how to achieve these objectives and performance analysis (Saks and Burke, 2016).

Employee perspective – Training and development

Employee retention and satisfaction

Employees are less concerned about the organisation when they feel the organisation is not providing them career advancement and learning opportunities. That is why; companies invest on employee through training and development programmes to increase employee satisfaction and reduce employee turnover. (Bode, Singh and Rogan, 2015)

Training and development ensure that employee recognises their organisation that organisation is spending for career advancement and employee willing to stay with the organisation. Training enclosed intrinsic benefit and employee feels valuable for the organisation, which not only increase employee retention but it also increase the performance of employee through personal and professional development. (Mathieu et al., 2016)

Antecedents and consequences - employee engagement

Employee Performance

Training is important in order to adapt to organisation structure and meet technological changes. Moreover, it allows adjusting with new technologies and improving method to increase the satisfaction of employee and adapt to new business environment. The importance of human resource training and development practices to equip employees with skills and competencies, which is important to perform job effectively. The interventions through training and development aim to provide technical and managerial competencies to sustain and achieve desire level of performance (Performance = ability x motivation) (Shields et al., 2015).

employee development

Organisation perspective – Training and development

Organisational Performance

According to Sheehan et al (2015) the social exchange model suggests that training increases the satisfaction of employee and increase the productivity. The social exchange model highlights that emotional agreement between employee and organisation as a centre to organisation performance. Therefore, when organisation invest in their employees through training and development then employees respond through optimistic attitude and behaviour which result in enhancing productivity and commitment towards organisation.

Habtoor (2016) discussed that the social exchange agreement highlights psychological bond between the employee and organisation. The performance and motivation are based on an ability of employee and motivation of employee and thus, the performance of an employee is combined effect of motivation and ability. The training and development of employee increase the motivation of employee and increase sense of commitment through developing new skills.

Employee retention

According to Jehanzeb et al (2015), the opportunities to learn new skills and gain knowledge enable the organisation to retain its employees. Employee retention and training have a positive relationship because employees are an important asset of organisation and training and development provide the environment, which increases the long-term satisfaction of employee.

Training contributes to the effectiveness and efficiency of the organisation and human resource practices allow to impact attitude and motivation of employees, which result in high-level performance and increase organisational commitment. Therefore, employee-training programme change direction and motivation of employee of employee and resulting increased employee satisfaction (Zumitzavan and Michie, 2015).

HR and Training needs assessment

According to Tobey (2014) training and development in an organisation occur at three levels, which are strategic level, tactical level and operational level. At the strategic level organisation mission and strategy is evaluated, at tactical level middle management needs are evaluated and at operational level employee performance and retention are reviewed.

Training allows identifying the gap between actual and desired level of performance and need assessment allows identifying the gap. The information allows making a decision on training needs and solving performance problems. Training need analysis is useful to assess organisation need analysis, which allows understanding the gap between the knowledge, expertise and attitude of the employee in the organisation (Barbazette, 2015).

HR and Training needs assessment

HR and Training needs assessment

The Process of Planned Training

The Process of Planned Training

ADDIE model

According to Branch (2014) the model is based on five stages that include analysis, design, development, implementation and evaluation. The analysis stage defines the process of learning through problem identification and needs assessment. The design stage is useful to specify the interventions and objectives of the training program.

In addition, development stage enclosed the procedures and materials, which allow the organisation to meet the organisational objective and implementation, highlight the process of conducting the training. The evaluation stage highlight the whether training adequacy meet the needs and expectations of employees (Morrison et al., 2016).

ADDIE model

ADDIE model

Research Methodology

Research approach

According to Creswell (2013), the achievement of research objective depends on upon the design of research. The research design involves the arrangement that contributes towards data collection, analysis and evaluation of data. The objective of this research is to improve the employee retention and performance through training and development. The three approaches to research are exploratory, descriptive and explanatory research. Descriptive research is useful to identify and clarify the problem.

Krishnaswamy, Sivakuma and Mathirajan (2015) discussed that explanatory research is useful to understand the causes and effects of scenario through developing meaning of problem in social context. It is useful to develop an understanding through the in-depth investigation of the problem. On the other hand, exploratory research is useful to develop an initial hypothesis and initial understanding of the problem. It allows developing background of the problem and providing the foundation for further research (Ritchie, Jane Lewis and Ormston, 2013).

To achieve the objectives of this research, descriptive research is used to evaluate how training and development improve employee retention and performance. The benefit of descriptive research is that it would allow describing characteristics of variables in the context of social phenomena as it is explored (Cox et al., 2015).

Research strategy

Yin (2013) stated that case study is useful and effective research strategy to examine the problem in depth because of case study flexible design and holistic perspective for the researcher. The advantage of the case study is that it allows exploring contemporary social phenomena through examining the problem in real life context without controlling the situation. The case study is useful to study social scenario through survey and observations. Moreover, descriptive case study allows exploring variables based on the how and what situation (Stebbins, 2015).

To evaluate how training and development programme improves retention and performance among the employee in the ABC will be better explore through descriptive case study approach. The holistic perspective and case study design would allow conducting in-depth analysis through making a recommendation to improve employee retention and performance of the employee in ABC.

Therefore, the descriptive case study would allow overcoming inconsistencies and examine the practices in the context of the theory. It is useful to identify and evaluating the training and development practices in ABC (Polonsky and Waller, 2016).

Design of research

Quantitative vs. qualitative research

Quantitative research enables to explore the problems and reasons based on the rigid structure and numeric data. The positivist variables and quantitative research are useful through evaluating effect and causes among the variables. The subjective nature and attitude explored through primary data collection, which allows exploring insight from large study population in cost effective and short time. On the other hand, qualitative research allows developing an understanding of a social problem. Qualitative research is useful to conduct research through interpretation of things, metaphor and description of social context (Silverman, 2015).

The advantage of qualitative research enables the researcher to explore the problem through social meaning to the phenomenon. The difference between two is design and methodological approach for research. To achieve the objective of this research, quantitative approach is used to analyse and evaluate the effectiveness of the training and development effectiveness in ABC.

The implicit phenomena will be explored through conducting the survey to evaluate the training and development programme improves retention and performance among the employee in the ABC (Ritchie, Jane Lewis and Ormston, 2015).

Primary Data collection

Research instrument – Questionnaire

According to Blatter and Haverland (2014), the two types of data collection are primary and secondary data. The secondary data is a data, which is already collected for other purposes. The primary data is collected for the specific problem to analyse and explore the problem and questionnaire will be used to collect data for this research. The advantage of primary data collection is that it allows exploring the problem in relevant context and useful to draw consistent results.

The survey is useful to collect data from large sample population in a quick manner. The questionnaires are useful to conduct the survey through an enlisting number of questions from the study population based on perception and experience. To ensure the data reliability and validity, the study population should be biased free and represent large sample population (Amorett and Preyer, 2015).

Sampling and survey population

According to Miller et al (2012) Stratified sampling will be used in this study to collect data from the employee of ABC through the questionnaire. The advantage of this sampling technique is that it enables to select the employee from each sub-section of the population and ensure the study population represent the larger population.

Stratified sampling allows dividing the population based on proportionality and characteristic of the study population. The study population for this study is an employee of ABC from different departments. The sample size for this study will be kept at 50 employees.

In addition, the questionnaire will be managed through ‘Qualtrics’ online survey platform. The ethical consideration will be kept at top priority and personal information will be collected from respondents.

Moreover, employee consent will be asked for participation in the survey. The privacy and confidentiality of the ABC employees are top priority of employees (Hammersley and Traiano, 2015).

 

 

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