How much does your company invest in training and development for your employees? Is the ROI positive? Many executives scrutinize training and development programs closely. They want to know if the payoff justifies the investment. Typically, people measure ROI by examining the impact on the employees undergoing the training. We ask questions such as: Are they more productive? Are they more engaged? Do they stay at the firm longer?
A new study examines another potentially important impact of training and development programs. Miguel Espinosa and Christopher T. Stanton studied 526 frontline workers and 129 managers in Columbia who had undergone a 120-hour, 16-week training program. According to HBS Working Knowledge, the scholars concluded:
"Goal achievement among frontline workers increased by roughly 10% after training. Managers completed 3% more of their goals related to strategic tasks. Supervisors who worked most closely with trained workers benefited the most, boosting productivity by about 8%. An examination of email data explains why: After the training, frontline workers sent fewer emails to their managers—an indication that the training had given them the knowledge and confidence to pursue their work independently. Trained employees enjoyed additional benefits, including career stability and growth. For example, they were more likely than their non-trained counterparts to remain with the organization over the next three years. And they were about twice as likely as their untrained counterparts to receive promotions."
Now this study examined frontline workers. Other research should examine development programs for employees at higher levels of the organization to examine the productivity benefits. Perhaps the benefits will not be as widespread. However, this study certainly provides food for thought. Executives may be looking at ROI all wrong when it comes to leadership development programs at all levels.
No comments:
Post a Comment