The Impact of Training on Employee Performance

Introduction

The modern business environment is characterized by increasing competitiveness, growing global markets, and constant demand for lowering costs and enhanced productivity. Therefore, the investments to training are aimed to increase employee performance, job satisfaction, and company revenue. Employee training is one of the key components that might influence the success of an organization. Still, most companies underestimate the benefits of training employees to increase their performance. The research topic of this paper is the impact of training on employee performance differs depending on the company approaches and values. The purpose of the research is to evaluate the positive and negative impact of various types of training.

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In this paper, I will review ten articles related to the impact of training. I will organize them according to four themes related to the findings. The themes identified after the research include the employees who benefit from training, aspects that influence training results, effects of training programs, and approaches to training.

The Employees Who Benefit from Training

Training Match and Mismatch as a Driver of Key Employee Behaviors

Employee training is one of the most important parts of human resource management. Lack of training has negative outcomes resulting in incompetent behaviors whereas overtraining has both positive and negative impacts on employees. Some researchers state that “undertraining refers to a situation in which firms provide the inadequate quantity or quality of training in contrast to that required by an employee to perform his/her job adequately, whereas overtraining refers to an opposing situation” (Lee, 2015, p. 478).

Matching of training with the job and the requirements improves employee behavior responses and secures the theoretical and practical development of skills. This study is oriented to discovering the possible impact of matching and mismatching of employee training according to job requirements. It proves the statement that any training should be selected after a detailed analysis of the work environment and needs of an organization.

Therefore, role tasks should be explored thoroughly to assure adequate performance of the workers with higher skills. This article is chosen as related to the topic because it shows how the match of training requirements and job responsibilities increase positive behaviors and job satisfaction. Thus, training should secure the matching of an employee to the job one performs and assist in self-realization and career development in the organization.

The Effect of Corporate Investment in Human Capital on Employee’s Performance: Major Korean Financial Corporation Examined

The value of employee training is also dependent on the education level of the workers in a certain organization. Internal training is not very effective for jobs that require academic degrees. Some researchers emphasize that “the mismatch between employees’ level of education and their current official duties can be regarded as a problem” (Bae & Patterson, 2013, p. 57). This study is concentrated on the evaluation of various Korean companies and the impact of training on the employees occupying diverse job positions. It revealed significant job dissatisfaction among the employees if their education level exceeds the requirements of the occupied position.

The employees with academic degrees showed little feedback after training, and their performance depended on financial rewards and job grades. Still, employees with basic school education who work in offices are believed to gain career advantages. They experience increasing in performance after appropriate training. This article is chosen as related to the topic because it gives advanced insight into the problem of positive and negative effects of employee training depending on education level. Therefore, training is an inseparable part of human resource management and should be used together with other practices.

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Role of Human Resource Practices in Employee Performance and Job Satisfaction with the Mediating Effect of Employee Engagement

The researchers with the opposite point of view argue that training and empowerment of workers contribute to performance and employee satisfaction more than any kind of reward and financial motivation. Although, rewards play a crucial role to secure employee participation in organizational activities. It is noted that employee performance is linked with job satisfaction which depends on such factors as tolerant attitude, professional behavior and approach to the job, emotional values, and organizational commitment (Sattar, Ahmad, & Hassan, 2015). Interventions made by human resource management include any kind of training and education.

They are connected with the development of an organization through the motivation of the workers to achieve the highest level of performance. The findings of the described study emphasize the need for training for younger employees to reach their full engagement and retain them in the current organization. This article is chosen as related to the topic because it shows how training is utilized to prepare the employees for organizational commitment and increase their abilities to participate in the development of the organization. Thus, human resource practices should include training as a key aspect of the strategy of enhancing employee performance.

Aspects That Influence Training Results

The Impact of Training and Development and Transformational Leadership Over Organizational Commitment Among Academic Staff in Public Tertiary Institutions: The Buffering Role of Coworker Support

It is also crucial to create a positive environment in the organization which utilizes a training strategy. Coworker support plays a significant role in training, employee development, and transformational leadership. The individuals who experienced high support from their colleagues and management showed better performance results after training than the employees who were not provided with any kind of support in the organization.

High commitment is crucial for employee performance because one works harder and shows a positive attitude towards the company if one is properly motivated and trained (Ahmad, Bibi, & Majid, 2017). This research analyzes the influence of training and development on organizational commitment in tertiary institutions. They positively influence the system of education and enhance economic development.

The results of the study provided some practical and theoretical implications related to organizational commitment, training, and development, as well as transformational leadership. This article is chosen as related to the topic because it shows how training strategy in organizations is applied to achieve positive employee behavior and performance. Therefore, when an individual receives appropriate training combined with supportive leadership and approval from one’s coworkers, the organizational commitment and performance are usually higher.

Do Organizations Spend Wisely on Employees? Effects of Training and Development Investments on Learning and Innovation in Organizations

Company investments in employee training and development have an impact on the innovative performance of this organization. Corporate costs of internal training are compensated by experiencing diverse learning practices which increases innovation level. The development of highly motivated and competent employees is a key factor for possible innovations to gain a competitive advantage in the market. It is noted that “the training and development investments of an organization create a climate for constant learning that facilitates the exchange of knowledge and ideas among employees, thereby promoting the generation of new knowledge and innovation” (Sung & Choi, 2014, p. 394).

This research is focused on studying the role of training practices as a mediating tool to increase the innovative level of employee performance. The internal training had a positive influence on learning practices and performance in the organizations with innovative traditions while financial support of outside education had negative effects. This article is chosen as related to the topic because it shows which approaches to employee training are better to utilize in an organization to achieve positive effects from training. Thus, the differences between the investments in internal and external training of employees were revealed.

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Improvement of Employees’ Performance Through Training Intervention in the Digital Era

The development of information technologies made it possible to organize training more effectively. At present, it is possible to train employees anywhere and anytime. The popular approach is to practice remote training sessions via the Internet, which helps to save time and costs. Many companies recognize the benefits of implementing remote training. It is stated that “training is usually costly, not only from the cost to send the employees to participate in the training, but more importantly that the employees have to leave their tasks” (Budiningsih, Dinarj, & Ashari, 2017, p. 639). It explains why many organizations used to be reluctant to spend money on training.

Due to the newest approaches to training, this process has become simple and cost-effective. This study also emphasizes that differences in training impact on employees are caused by the set goals such as improving certain skills or enhancing professional knowledge of the workers. This article is chosen as related to the topic because it shows how training influences employee performance and the contribution of the workers to the company’s success and competitive advantage. Therefore, a successful training program depends on such variables as senior management support, program quality, and motivation of the participants.

Effects of Training Programs

Employee Post‐Training Behavior and Performance: Evaluating the Results of the Training Process

Although organizations intensively invest in training programs, they might fail to reach the desired result in increasing company performance and revenue. Training is supposed to improve the skills of an employee, as well as positively alter one’s behavior and enhance knowledge. Some researchers emphasize that “after the completion of the training process, trainees have to transfer the acquired knowledge and/or skills to their daily job activities, to improve their job performance progressively” (Diamantidis & Chatzoglou, 2014, p. 150).

It is noted that employees should be properly motivated to apply the obtained skills and knowledge in their every-day job. Otherwise, the impact of training will be rather low, and the performance of employees will remain at the same level. The behavior of employees after training is determined by such factors as the design of the program, self-efficiency of the participant, and requests for job feedback. This article is chosen as related to the topic because it shows how the practical application of training content impacts the changing of employee performance. Thus, the training program should encourage the trainees to use the obtained knowledge and skills in their everyday work, which helps to increase training efficiency.

Investigating the Impact of Training Influence on Employee Retention in Small and Medium Enterprises: A Regression‐Type Classification and Ranking Believe Simplex Analysis on Sparse Data

Available training alternatives greatly influence employee retention in medium and small businesses. This research reveals the positive influence of training programs available for the companies to increase the performance of their employees and keep them loyal. Medium and small businesses practice inferior training, which results in a lack of work-based training and a small number of qualified specialists due to lower participation in training schemes provided at the federal level and utilized by large corporations (Beynon, Jones, Pickernell, & Packham, 2015). Such businesses need knowledge and skills to increase their efficiency and productivity as they continue to play a significant role in economic growth. Training is essential for these companies to obtain highly-motivated and qualified employees.

It also assists in decreasing the level of employee turnover to retain specialists who perform better after gaining the skills that are relevant to their job position. This article is chosen as related to the topic because it shows how the attitude of the employees towards training is related to organizational commitment and performance in small businesses. Thus, the management of some small companies is concerned by the possibility to lose the employee to competitors as training might result in a potential wish to change an employer.

Approaches to Training

Effects of SF Training on Productivity and Leadership Behavior

Solution-focused training is widely utilized by organizations to improve management and leadership skills and achieve changes in productivity and behavior. The latest trend is to use this method in a business environment. The major advantage of such training is in the small steps of its influence, which result in visible significant changes after a short period (Hoffman, Lueger, & Luisser, 2014). This method assists in creating solutions and opportunities for management development in organizations. The research aimed to evaluate the influence of the mentioned approach on employee performance and behavior.

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The employees related to the production area are coached and educated to apply solution-focused ideas and methods. This approach is effective in improving the performance of human resources and increasing production figures.

The participants report feeling more confident as team leaders and improved their skills in time management, communication, and problem solution. This article is chosen as related to the topic because it shows how training results are utilized in decreasing product waste and reducing production costs due to the ideas suggested by the workers and the appropriate management approach. Thus, this kind of training has a positive impact on employee performance and behavior.

How to Empower Employees: Using Training to Enhance Work Units’ Collective Empowerment

The psychological empowerment of employees through training is also highly recommended to organizations to achieve the proper involvement of employees in the process. Such motivation enhances employee performance level and job effectiveness.

Appropriate training assists in building a positive organizational environment. Some researchers state that “individuals within the work unit develop a shared sense of empowerment in that they attach the same meaning to their work and feel a similar sense of potency, autonomy, and impact” (Voegtlin, Boehm, & Bruch, 2015, p. 358). This study evaluates the impact of an empowerment training program on the motivation of collective empowerment at the workplace. It consists of various dimensions of empowerment that influence employee performance and behavior.

The rates of participation in the training program significantly influence the enhance of collective empowerment in the company. The relation between individual training and motivation of the whole work unit was established as well. Practical application of such programs might increase self-assessment of employees, assist in teaching communication skills, and offer information about company goals and values. This article is chosen as related to the topic because it assists in investigating the influence of training on performance through the empowerment of the workers. Thus, the described training approach helps an employee to understand what kind of contribution one makes to the company performance.

Themes of Literature Review

Therefore, such themes as the employees who benefit from training, aspects that influence training results, effects of training programs, and approaches to training were covered. The theme related to the employees who benefit from training contains similar articles such as “Training match and mismatch as a driver of key employee behaviors”, “The effect of corporate investment in human capital on employee’s performance: Major Korean financial corporation examined”, and “Role of human resource practices in employee performance and job satisfaction with mediating effect of employee engagement”.

The theme related to aspects that influence training results contain similar articles such as “The impact of training and development and transformational leadership over organizational commitment among academic staff in public tertiary institutions: The buffering role of coworker support”, “Do organizations spend wisely on employees? Effects of training and development investments on learning and innovation in organizations”, “Improvement of employees’ performance through training intervention in the digital era”.

The theme related to the effects of training programs contains similar articles such as “Employee post‐training behavior and performance: Evaluating the results of the training process” and “Investigating the impact of training influence on employee retention in small and medium enterprises: A regression‐type classification and ranking believe the simplex analysis on sparse data”. The theme related to approaches to training contains similar articles such as “Effects of SF training on productivity and leadership behavior” and “How to empower employees: Using training to enhance work units’ collective empowerment”.

Conclusion

The review of the scholarly studies made it possible to claim that the impact of training on employee performance differs depending on the company approaches and values. Utilizing training programs in certain organizations have both positive and negative consequences. It is crucial to differentiate the groups of employees that will benefit from training. The skills and education of employees should match the job they perform.

Overtraining might have a negative effect and cause low productivity and turnover. It was found that young specialists and employees without academic degrees usually show higher performance rates after training while employees with higher education usually do not have a significant difference in performance and might be overtrained. The aspects of successful training strategies such as coworkers’ commitment and management support were recognized by some studies to have a positive influence on training outcomes.

The key findings are that information technology greatly assists in implementing successful and cost-effective training programs. Remote training increases employee performance nowadays. The study of long-term results of training showed that employees should use the skills they obtained in their job to benefit from training. Still, the effect of training on retaining staff in medium and small businesses is recognized to be positive.

The most innovative approaches to training are solution-focused training and empowerment training. They have a positive impact on employee performance. The reviewed sources will be used in further research on the impact of training on employee performance to identify the most effective approaches to training.

References

Ahmad, A., Bibi, P., & Majid, A. H. A. (2017). The impact of training and development and transformational leadership over organizational commitment among academic staff in public tertiary institutions: The buffering role of coworker support. International Journal of Economic Perspectives, 11(1), 417-432.

Bae, S. O., & Patterson, L. (2013). The effect of corporate investment in human capital on employee’s performance: Major Korean financial corporation examined. Academy of Strategic Management Journal, 12(2), 55-76.

Beynon, M. J., Jones, P., Pickernell, D., & Packham, G. (2015). Investigating the impact of training influence on employee retention in small and medium enterprises: A regression‐type classification and ranking believe simplex analysis on sparse data. Expert Systems, 32(1), 141-154.

Budiningsih, I., Dinarj, T., & Ashari, Z. (2017). Improvement of employees’ performance through training intervention in digital era. European Research Studies Journal, XX(4B), 637-654.

Diamantidis, A. D., & Chatzoglou, P. D. (2014). Employee post‐training behaviour and performance: Evaluating the results of the training process. International Journal of Training and Development, 18(3), 149-170.

Hoffman, K., Lueger, G., & Luisser, P. (2014). Effects of SF training on productivity and leadership behaviour. InterAction – The Journal of Solution Focus in Organisations, 6(2), 33-44.

Lee, G. J. (2015) Training match and mismatch as a driver of key employee behaviours. Human Resource Management Journal, 25(4), 478-495.

Sattar, T., Ahmad, K., & Hassan, S. M. (2015). Role of human resource practices in employee performance and job satisfaction with mediating effect of employee engagement. Pakistan Economic and Social Review, 53(1), 81.

Sung, S. Y., & Choi, J. N. (2014). Do organizations spend wisely on employees? Effects of training and development investments on learning and innovation in organizations. Journal of Organizational Behavior, 35(3), 393-412.

Voegtlin, C., Boehm, S. A., & Bruch, H. (2015). How to empower employees: Using training to enhance work units’ collective empowerment. International Journal of Manpower, 36(3), 354-373.

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