The productivity of a company is strongly related to its people and its strategies. The Employees bring along a wide range of qualifications, abilities and knowledge, which might as well be useless to the company needs. Some of them identify with the company and are motivated in helping reaching goals, while others see the company as a vehicle meant to satisfy their own targets. This paper touches upon the importance of retention of the employees and human capital investment.
This paper will highlight the impact of these issues based on the employee’s performance, motivation and the ultimate benefit for the organization. This discussion paper is based on a research conducted in “Telecommunication sector in Pakistan” Impact of training on employee performance and an academic journal on “Impact of employee retention on performance. ” During my research I have found that organizations invest a huge capital on employee development, but due to transfer or termination of the trained staff after the training the organization could not get the return on their investment.
This is because of a poor retention system of the organization. With this if those who are already employed leave the organization in high numbers the organization will suffer in response. In order to increase the productivity of the organization it is important to have an efficient labor force. Efficient labors need to create by the organization by providing them the relevant trainings they require. Thus training involves changing skills, knowledge, attitude, or behavior. Determination of the organization need, the work to be done and the skill necessary to complete this work, training program should naturally.
A proper system of training and learning is important for the human resource development. The learning and enhancement of knowledge of the labors creates a healthy and productive labor force. If this is proper managed by the HR then the retention of these skilled training staff will be motivated and loyal toward the organization. 1- Summarization of the Academic Journal 1 1. 1 Impact of training on employee performance This research was conducted in the telecommunication sector of in Pakistan among among the employees of five telecom companies.
This was a 360 study; the information was extracted through questionnaires which were distributed among the employees. It has been observed that most organizations meet their needs for training in an ad hoc and haphazard way while others set about identifying their training needs, then design training activities in a rational manner and finally assess the results of training. The study concludes that if organizations invest in right type of employee training it can enhance employee performance as well as competencies and skills.
In addition, training is seen as a useful means of coping with changes fostered by technological innovation; market competition, organizational structuring and most importantly it plays a key role to enhance employee performance. A complementary relationship was found between receiving informal training and receiving on-the-job or off-the-job training. Training generates benefits for the employee as well as for the organization by positively influencing employee performance through the development of employee knowledge, skills, ability, competencies and behavior (April, 2010).
Organizations that are dedicated to generating profits for its owners, providing quality service to its customers and beneficiaries, invest in the training of its employees. The more highly motivated a trainee, the more quickly and systematically a new skill or knowledge is acquired. That is why training should be related to money, job promotion, and recognition etc, i. e. something which the trainee desires (Flippo, 1976). There are four prerequisites for learning: Motivation comes first. Cue is the second requirement. The learner can recognize related indicators (cue) and associate them with desired responses with the help of training.
Response comes third. Training should be immediately followed by positive reinforcement so that the learner can feel the response. Last is the feedback; it is the information which learner receives and indicates in the quality of his response. This response must be given as quickly as possible to make sure successful learning (Leslie, 1990). Issues and recommendation 1. 2 ISSUES Organizations are installing latest technologies hardware and software to remain competitive in the global market. Same is the case with the employees they do want to improve their skills, competencies and capabilities by training programs held by the organizations.
In the absence of adequate Training and development opportunities employee will feel dissatisfied and de-motivated as technology is changing rapidly and everyone wants to keep himself up-to-date according to new technology and techniques. Employees returning to work after some years caring for children or after a long break may feel anxious about the new job, even when they may have worked for the company in the past. They may feel out of touch with developments, and in need of re-establishing themselves. These are also an issue which needs to be considered.
Offering training and extra help to settle in and become valuable members of the organization is an important role in human resource development. (Sultana 2012) Employees who are committed to their job assignments, they have high level of job involvement and there is a very constructive relationship between job involvement and performance. Research studies show that there is not a compulsion that the workforce who is more committed to the job is also expected to remain in the organization for the long time period. Such type of workforce is more successful and beneficial for the organization as ompared to the workforce who is not genuinely committed to the organization and remains in the organization for life If the organization fails to conduct training to the development employees, employees will not be confident enough to adopt the advancement brought into working style. The flexibility to adopt these changes will be very slow resulting a less confident, slow and inefficient labor force. The impact of this issue for the organization would be difficult to survive with the technological changes in the market and to gain a favorable market share.
This could be a very harmful threat if the organization has already a large number of competitors in the market. 1. 3 RECOMONDATION I would recommend conducting training would be the best solution this will keep the employees informed regarding the changes. Organization can conduct induction program for the new recruiter. The best way for the existing hardworking labors would be to conduct on the job trainings. The employers can conduct refresher trainings quarterly. This will lead them to motivation that they are continuously learning and organization is giving them opportunities to develop themselves.
The factors which influence the capacity of an employee to become competitive are the skills, intrinsic abilities and levels of motivation. An effective training and development program provides learning opportunities to the employees, develop their capabilities and competencies, polish their personality and skills and make them Confident. Developments of skills encourage employees to deal with difficulties and enhance their efficiency (Deckop et al. , 2006). This retains the employee within the organization and leads him toward higher organizational commitment and loyalty and optimum performance.
In addition after training and development employee becomes more competent, and useful for the organization. Training is an important task of Human resource practices which can be used for the retention and development of employees, training and development also has a dual relationship. In the absence of adequate Training and development opportunities the employees will be lacking confidence in facing new thing in the organization. This will create and unproductive labor force by reducing the production speed by generating less quality product which leads to loss of the company. Summarization of the Academic Journal 2 2. 4 Impact of employee retention on performance This paper suggests that a retention plan is important for each organization in order to have a productive labor force. The paper further more discuss that an effective retention plan attains employee loyalty and in addition brings motivation, satisfaction and involvement in the tasks and assignments which ultimately optimize employee performance as well as organizational productivity.
Talented employees and knowledge workers are difficult to attain, expensive to train and essential to retain in the world of global competition and talent shortage. Retained employees possess high level of loyalty with the organization and perform their work task not only physically but emotionally and cognitively as well (M. Rizwan, et. al. 2011). Motivated employees focus on their end goals and attempt to achieve them; they never bother constraints and limitations (Zareen, M. , Razzaq, K. , Mujtaba, B. G. , 2013).
All the employees cannot be retained by any specific compensation plan even being on the same hierarchical levels. Some employees strive for monetary rewards others want performance appraisal, some desire for authority and involvement in decision making process with their new ideas and concepts. All these types of employees should be managed and retained by different compensations plans which better fit to their psychological requirements so they feel satisfied with their needs, tend to be more effective, productive and helpful for the organization for achieving their own goals and organizational outcomes.
In this paper the researcher discuss about the skilled and trained staff leave the organization if there is no retention plan retains them in the organization. And further more discuss that training is expensive, if the organization has a huge turn over than the human capital investment will not be affordable for such organization. The more the organization spends on training employees the less they gain through the productivity of the employees due to high turnover. As solution for this issue the paper has suggested to motivate the employees.
Motivation is a psychological process that causes the arousal direction, and persistence of voluntary actions that are goal directed. Valued employees are very important to retain with the organization by monetary and non-monetary rewards, making them involved in decision making and by providing them opportunities for their learning and development of their capabilities. But this cannot be generalized because of the fact that different employee show different behaviors towards compensation and their loyalty cannot be achieved by any rule of thumb. Sultana, 2013) Motivation is a psychological process that causes the arousal direction, and persistence of voluntary actions that are goal directed. Employees behave in a purposive way, they tend to show positive behavior by performing work related activities timely, on the contrary they behave negatively as well when feel dissatisfied and de-motivated by their work or when they feel ignored by their top management. Human nature wants to be rewarded and praised for all positive deeds, actions and activities.
Employees want to be appreciated, they wish for returns on their investment of physical emotional and cognitive energies, and all the extra efforts they did to accomplish organizational goal. 2. 1 Issues and recommendation 2. 2 ISSUES Retention of employees within the organization has become an issue of great importance in the business world of huge competition during the last few decades. If the employees within the organization are not satisfied and motivated there is high chance of losing the employees in a highly competitive market.
To reduce the risk of losing the trained and experience employees the organization should have to be involved in motivating them by considering their needs. (Zareen, 2013) Due to the development of the competitive firms there are many attracting opportunity for the skilled and experienced labors, and if these employees are not happy within the organization then there is chance of losing them. If there are not retained on the job then organization losing up the investment they made to develop and train them. This will lead to a less efficient labor by less quality products.
World is suffering from shortage of talent, talented workers are difficult to attain, expensive to train and highly important to retain. With this if those who are already employed leave the organization in high numbers the organization will suffer in response. Retention of employees with the organization optimizes their performance and increase organizational productivity 2. 3 RECOMMONDATION As a solution for the issues employee retention and reduce the turnover by getting the return for the investment an organization invested to training and development their employees, I would suggest to keep the employees motivated.
Motivation is the next stage of satisfaction and necessary for the long term goals of the organization. An effective reward system can retain the employees but an ineffective reward system leads them to higher turnover (Hafiza, N. S. , et. al. 2011) the decision of effectiveness or ineffectiveness of the reward system can only be taken according the psychological. Motivating the employees can help to increase the performance of the employees resulting with numerous benefits to the organization. Motivation will help to retain the employees within the organization.
In order to retain the staff the management can come up with a successful retention plan. Since employees of the organization are viewed as an asset of the organization it is very important to identify the purpose of labor in an organization, and to facilitate them to perform their task. Therefore it is no doubt that human resource development has a very huge connection with the performance of the employees. An efficient labor force would be able to generate high profit to the organization. And also will help to provide quality products.
Therefore performance of the employees determines the level development of skills and competency is required to perform the job 3- Conclusion Training is a key element for improved performance; it can increase the level of individual and organizational competency. It helps to reconcile the gap between what should happen and what is happening between desired targets or standards and actual levels of work performance. Training need is any shortfall in employee performance, or potential performance which can be remedied by appropriate training.
There are many ways of overcoming deficiencies in human performance at work, and training is one of them. To fully capture the value training can provide, organizations should develop a training plan that matches user preferences to training modalities and training needs. The training plan should include an instrument to measure the return on investment in categories such as productivity gains, reduced equipment usage, reduced product failure, improved customer service, compliance, increased employee morale/retention and revenue gains.
Human resource development plays a very important role in development of the employees. They facilitate them to learn and develop them self. This help to produce committed employees who work to achieve the organizational goals. These employees will be motivated which leads to quality performance by increasing the organization revenue. These motivated employees will loyal towards the organization and this will help to retain them in the organization. Losing a trained and experience staff will be a huge lose for the organization.
The human capital investment process will be carried thought the organization life. But with this process the management should have to make sure that the return o this investment is being gained through quality performance by the employees. If this is process is overlooked them the company is waiting the money.
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