Training and Development - Current or Future Skills

Training Definition: Efforts to increase skills, knowledge and attitudes that lead to superior work performance in an employee's current role in the business as it is currently structured. Educational programs can be delivered internally or externally.

Development Definition: Efforts focused upon enhancing skills and qualities to upgrade employee capability in line with changing needs and future strategic direction of the business. Identify and develop star employees to move into higher roles.

The business environment is constantly changing. If the skills and capabilities within the firm lag behind those in the external business environment, this will lead to a loss of competitive edge, market share, revenue and profitability.

Training and development of staff is expensive; but necessary for long-term success.

The training and development requirements of a firm depend upon the industry (fast-moving?), the size of the firm (global leader?), and the existing capabilities of human capital within the firm (on leading edge / driving change?).

Businesses must use a systematic process to:

• Identify the needs of the firm (what internal capabilities are missing?)

• Determine employees to undertake training (how measure performance?)

• Identify employees demonstrating leadership potential (how to measure?)

When to apply this strategy:

• When rival firms are gaining a competitive edge; 

• When specific aspects of a firm’s operations is underperforming; 

• When a firm requires the application of new ideas / approaches to existing practices and processes; 

• When a firm needs to plan for succession of leadership roles in the firm; training and development can also lift employee morale, motivation and overall workplace culture.