It’s not a secret that today the employee professional development or, in other words, corporate training, is the key to a company success. Corporate competitiveness increasingly depends on the employee qualification level. One of the very first steps any company has to take in order to optimize its activity is professional development of its employees. According to the American Society for Training and Development (ASTD), investments in staff training significantly increase the company's financial performance.
The article was last updated on August 24th 2016.
With a training investment of $ 860 per employee the profit will grow by 6%. Based on data from 575 companies within a 3-year period researchers discovered an interesting fact. Companies that make large contribution in employees training, have an average of 36% total revenue as compared to 25% return in other companies. Such income is 45% more than a market average. Larger profits therefore lead to bigger income of the company employees and higher stock prices (see Howard Community College for the details).
Well, what is corporate training?
It’s not a secret that today the employee professional development or, in other words, corporate training, is the key to a company success. Corporate competitiveness increasingly depends on the employee qualification level. One of the very first steps any company has to take in order to optimize its activity is professional development of its employees. According to the American Society for Training and Development (ASTD), investments in staff training significantly increase the company's financial performance.
With a training investment of $ 860 per employee the profit will grow by 6%. Based on data from 575 companies within a 3-year period researchers discovered an interesting fact. Companies that make large contribution in employees training, have an average of 36% total revenue as compared to 25% return in other companies. Such income is 45% more than a market average. Larger profits therefore lead to bigger income of the company employees and higher stock prices (see Howard Community College for the details).
Well, what is corporate training?
In brief its improvement of employees professional knowledge and skills that the company needs to conduct for its business success and development.
Many companies invest 2-10% of payroll in training their employees. At the end of the training period they expect return on investment, increase in productivity, and hence, sustainable profit growth.
What should an effective corporate training include?
- Study of theoretical material. This unit is used to provide the necessary information and describe how to solve a particular problem. It should include not just text information, but different graphics and pictures that illustrate the material.
- Practical tasks. This unit allows the employee to solve problems in action, applying the knowledge from the studied theoretical material.
- Knowledge control. This unit used to monitor the level of employee’s theoretical knowledge and practical skills. It allows the employer to find out how well the material has been learnt.
- Final grading, teachers’ reviews, and certification of employees depending on the results achieved.
Theoretical block should be brief but informative and interesting, consist of only necessary information with images, audio and video materials.
Practical tasks should be diverse, include everything from training exercises for developing the individual skills of the employee to business games and group discussions. It can also include different individual projects. Analyzing the results the company can evaluate the employee’s level of knowledge and skills in the field of study.
Tests are the easiest way to control the knowledge. But the teachers can also do an interview or combine both of these methods.
Grading and certification of employees is desirable on completion of the training. To encourage the employees several levels of assessment can be created (with different certificates).
One powerful way to improve training process and its monitoring is Learning Management System (LMS). LMS is a system for managing learning processes online. After users log on to LMS under their own accounts, they can look through the theoretical material, carry out individual assignments and tests, study the additional material in the online library, consult with teachers, participate in online conferences and discussions, and much more.
Would you like to know the benefits of using LMS system for improving your employee’s qualification? Here are just several possibilities:
- Test employees’ professional knowledge level
- Provide graded training and plan training stages
- Monitor the training process and reveal its weak points
- Control the completion of practical tasks
- Control the completion of individual tasks
- Conduct final tests on completion of the course or its different sections
- Creation forum discussions
- Certify employees
- Use SCORM courses that can be easily created with the help of any SCORM creation tool
- Hold corporate webinars
- Collaborate on projects
LMSs have many different features not only for employees education, but also for creation of professional LMS-based company portals.
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