A recent paper published in the Journal of Applied Psychology suggests that corporate training programs can be damaging to an organization if employees lack opportunities for advancement.

The American Society for Training and Development (ASTD) estimates that American companies spent $134.1 billion on training and education in 2008.

Opportunities do not always need to consist of promotions or raises. Managers can offer longer-range opportunities for career growth that enable staff to have increased autonomy and greater involvement in decision making, the researchers note. “Career opportunities are perceptual in nature, so raising [perceptions]…may be largely a matter of letting employees know more about the range of possibilities that are already available within the organization,” the researchers write.

The research findings differentiates between formal and informal training, where formal training includes executive management programs, workshops, job rotations, and tuition reimbursement programs that let staff complete their degrees. In contrast, informal training is based on personal relationships like career mentoring and interactions between supervisors and subordinates. Mentoring can include coaching, being exposed to senior colleagues, and recommending a mentee for challenging assignments.

The researchers found that both forms need to be supplemented with a perception that employees have a clear path up the corporate ladder.  When employees believed that attractive career moves were possible, their participation in training programs translated into higher job performance and a greater likelihood they would stay.

Bottom Line:
Given the high costs of staffing and turnover, employee development is necessary, but only if employees perceive that their company offers career opportunities. Otherwise, traditional, off-the-shelf, canned training programs may backfire for the company, giving employees the credentials to be hired somewhere else.

What do you think? When did a corporate training program or development initiative prepare you in your role.  I’d really like to know what you think about development program, please write a comment in the space below.

CEO’s contact Mary Hladio, (513) 984-9333 for a 30-minute complimentary consultation to discuss a better way to increase performance in your organization with the FUEL™ process.

Strategy+Business (07/22/11)

Web: www.embercarriers.com|Twitter: www.twitter.com/embercarriers|LinkedIn: www.linkedin.com/in/mhladio

Related articles

• Get a Return on Your Spending on Training (embercarriers.com)
• Developing Millennials into Future Leadership (embercarriers.com)
• What is the corporate education (wiki.answers.com)
• The 10 Things You Need to Know About Training and Management Development: An Analysis of The Best Investment Managers Can Make in Business (bizcovering.com)
• Employee Training in Small to Mid-size Companies (themaxpoint.net)