Importance of Training and the Bottom Line and How It Effects on Turnover - Essay Example

IMPORTANCE OF TRAINING AND THE BOTTOM LINE AND HOW ITS EFFECT ON TURNOVER In global perspective, retention of employees is considered as one of the most important elements of human resource management. Many firms are judged on the basis of their rate of turnover. The turnover rate influences the organization’s performance. Therefore, organizations focus a lot on retaining employees. The turnover of employees also reflects how the firm treats and values the human resource (Abbasi, & Hollman, 2000). So, if the firm has higher turnover, it makes difficult for a firm to hire new and quality employees. If the organization has low turnover then this means that the organization has been successful in retaining its employees by giving them better atmosphere and working environment. High turnover of employees negatively influences the organization and the organization is not able to smoothly plan things and manage their operations. Thus, turnover of employees is a critical aspect in the success of the organization (OConnell, & Kung, 2007). Human resource management is responsible for formulating different strategies in managing the human resource and in retaining them. Training is one of the strategies that human resource uses in order to retain the employees (Carraher, 2011). Employees analyze and identify career growth, skill development and several other factors to continue their job with the organization. If employees do not see a bright future with the organization then it is likely that they would switch to an organization that can offer them higher growth and career development. Training is therefore critical in building and developing the skills of employees. Training is an important aspect and function of human resource department and human resource management. Training helps the employees of the organization to learn new things as well as enhance their existing skills (Pencavel, 1972). Training is a sort of investment that the organization makes on the employees and the returns on training are basically the higher productivity, more consistency in the performance of employees, overcoming the issues, problems and weaknesses in the employees of the organization, increases the satisfaction level of employees, reduces the pressure and work of the supervisor and several other benefits. Therefore training has a lot to offer to the employers and the organization. Training is one of the key elements linked to employee satisfaction in a specific firm. There are different aspects that result in retaining of employees and the satisfaction of employee is among one of these factors. Therefore it can be said that employee satisfaction leads to employee retention. So, if the organization focuses on increasing the employee satisfaction level, then it is likely that the turnover of the employees will be reduced. Otherwise, if the employees are dissatisfied, then it is likely that the turnover of employees would be high and they would be looking for better organizations that can offer better career growth, skill development and more learning. Thus, it makes training an important part of human resource plan and in retaining employees. The opportunities for career growth and training directly affect the retention of employees. HR professionals need to create and discover the strategies for career growth and train the employees which will develop the employee’s dedication and they would sense that they are given value. There is a direct relationship of training with the retention of employees (Bartlett, 2001). The employee retention increases and turnover reduces if a proper training is being given by the organization (Bartlett, 2001). During the process of training, employees feel valued by sensing that organization is showing interest in them and the organization wants to build up their career. The employees feel that their employer is investing on them because the employer believes that a particular employee is important and competent. This increases the motivation of employees as well. Moreover, employees learn more about the job and thus it makes their routine tasks easier and all these factors result in employee retention. Training is important at every stage of the career of an employee. However, training should be given more during the early phase of the career. Training can be in different forms. Organizations should not only give training in formal ways, but the organizational culture should also support training at every stage. This means that the managers and supervisors should also train the sub-ordinates. Organization should also encourage on-job training and employees should be trained about different tasks and different aspects of doing work. Moreover, it is important that training should not only be restricted to the skill of the employees, but training can be given on general different domains such as general work ethics, time management, communication skills, presentation skills, workplace safety, team building and team work and several other things that can improve the productivity and performance of the employees in daily routine. Training employees therefore would assist the organization in enhancing its overall productivity. Training further should be well supported by the management; the management should show keen interest in supporting the employees on their job. Such an organizational culture would lead to employee retention. The most important determinant of employee motivation and retention is training, for making employees stay in the organization, compensation should be reasonable enough. The retention of employees is an essential element for every company to be effective and thus to be a good employer, training should be effective to keep the turnover rate low (Brum, 2007). Employees may observe some practices of human resource as a ‘gift’. Training is one of those strategies which the employees may see as a gift. The outcome of this gift is that employees put more efforts, turn out to be more creative and possesses a better sense of debt to the company. Through this gift employees could also feel that they are the insiders into the company. An insider is probably more dedicated and loyal towards a company. The principle is that an employee would make efforts to help organization if the organization makes efforts to help an employee. Employees have some wants and expectations in the workplace and when the organizations try to reach and go beyond these wants and expectations then retention of employees is likely to be improved (Hassan et al., 2013). To conclude, human resource is considered as the most important asset of an organization and as organizations invest on different assets to make sure that they perform well and to retain them, thus, the employers should also invest in employees by giving them training and this will result in higher productivity, higher performance and in retaining them. References Abbasi, S. M., & Hollman, K. W. (2000). Turnover: The real bottom line.Public Personnel Management, 29(3), 333-342. Bartlett, K. R. (2001). The relationship between training and organizational commitment: A study in the health care field. Human Resource Development Quarterly, 12(4), 335-352. Brum, S. (2007). What impact does training have on employee commitment and employee turnover. In Schmidt Labour Research Centre Seminar Research Series (pp. 1-13). Carraher, S. M. (2011). Turnover prediction using attitudes towards benefits, pay, and pay satisfaction among employees and entrepreneurs in Estonia, Latvia, and Lithuania. Baltic Journal of Management, 6(1), 25-52. Hassan, W., Razi, A., Qamar, R., Jaffir, R., & Suhail, S. (2013). The Effect of Training on Employee Retention. GJMBR-A: Administration and Management, 13(6). OConnell, M., & Kung, M. C. (2007). The Cost of Employee Turnover.Industrial Management, 49(1). Pencavel, J. H. (1972). Wages, specific training, and labor turnover in US manufacturing industries. International Economic Review, 53-64. Read More