Paradise, (2007) in his report stated that U.S. organizations alone spend quite $126 billion annually on employee training and development.
In an environment where there's high uncertainty tends to present organizations with high risk, the knowledge of business and market intelligence present organizations with a reliable competitive advantage over people who don't have such (Jelena, 2007). The success of organizations is however hooked in to its knowledgeable, skilled and experienced workforce. Therefore, in order to maintain sustainability, organizations must see continuous employee training and development as a matter of importance.
Training and development is extremely essential in the least employee levels, thanks to the rationale that skills erode and become obsolete over a period of your time and has got to be replenished (Nishtha and Amit (2010).
Training has been invaluable in increasing productivity of organizations. It doesn't only enhance employees resourcefully, but also provides them with a chance to virtually learn their jobs and perform more competently. Hence, increasing not only employee’s productivity but also organizations’ productivity.
Various researches indicate the positive impact of training on employees’ productivity. Training as a process is among the foremost pervasive methods to enhance the productivity of individuals and communicating organizational goals to personnel (Ekaterini & Constantinos-Vasilios, 2009). Rohan & Madhumita (2012) also supported that investing in training employees on decision making, teamwork, problem-solving and interpersonal relations has beneficial impact on the organizations’ level of growth, as well as impacting on employees’ performance. Training affects employees’ behavior and their working skills which results into employees enhanced performance as well as constructive changes (Satterfield & Hughes, 2007). Training is most effective way of motivating and retaining high quality in human resources within an organization (Kate Hutchings, Cherrie J.Zhu, Brain K, Cooper, Yiming Zhang & Sijun Shao, 2009). Also added by Lowry, Simon & Kimberley (2002), training is a way of enhancing employee commitment and maximizing employee potential.
However, the optimum goal of each organization is to get high revenue and maximize profit.Thus, a workforce is merely efficient and effective if training and development is provided for such and thus resulting in productivity.
In conclusion, training and development ultimately upgrade not only the productivity of employees but also of the organization. It has rightly been said, employee development is the key to organizational sustainability. Organizations must have employees who are ready to quickly adapt to an ever-changing world market. Companies got to invest in on-going employee training and development so as to both keep employees and achieve success.
The 21st century is going to be favorable to those organizations, which are ready to learn faster and adapt to changes than their competitors.
Training enhances employees’ initiative and quality of labor, thereby assisting them to be more committed to achieving the organizational goals and objectives and successively enhancing employees’ effectiveness within the organization.