2.5.5

Training a Workforce

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The Importance of Training a Workforce

Training staff is very important for a business. It can have many positive effects:

Increased productivity

Increased productivity

  • Training a workforce means that they are likely to become more skilled at what they do.
  • In factories or services industries, if staff are more productive, this will be beneficial for the company by increasing output or reducing costs.
    • Investment Banks like Goldman Sachs start their graduate schemes with training programmes where employees learn about different investment products and the industry.
Ability to deal with change in technology

Ability to deal with change in technology

  • Training is needed for employees to know how to use new technology. In the digital world we live in this is more important than ever.
Increased motivation

Increased motivation

  • If staff feel that they are learning and progressing in a firm, then they are likely to be happier and more motivated.
High quality output

High quality output

  • Training staff usually makes them more skilled at the job they do. This will lead to higher quality output and this is usually beneficial for the firm’s profitability.
Staff retention

Staff retention

  • If employees are happier and more motivated then they are likely to stay at a firm for a longer period of time.
  • Reduces the costs involved with recruiting and training new employees.
    • Staff tend to get better at their job with more experience within the same business.

Methods of Training

A business' workforce can be trained in 3 main ways:

Induction training

Induction training

  • Induction training happens when employees first arrive at a firm. It introduces them to the firm and provides initial training for their role. Benefits include:
    • Employees feel comfortable in their surroundings and meet their new co-workers (colleagues), which may increase happiness, confidence, motivation and productivity.
    • Induction training is likely to make employees less likely to make basic mistakes.
On-the-job training

On-the-job training

  • This is the most common type of training. The employee learns how to do the job to a high standard while actually doing the job.
  • This usually involves an employee being shown how to do something and then practicing and improving over time.
    • On-the-job training is low cost.
    • It is best suited to jobs involving practical skills.
  • The main drawback is that the teaching is done by other employees, so bad habits could be passed on from others.
Off-the-job training

Off-the-job training

  • Off-the-job training happens away from the workplace, allowing employees to be taught a wider range of skills. They get to learn skills that aren’t just related to one specific task.
    • For example, it is common for managers to get training on leadership (what makes a good leader).
  • Off-the-job training is often taught by specialist instructors and this means that it may be higher quality training. But, this can make it more expensive than on-the-job training.
Jump to other topics
1

Investigating Small Business

1.1

Enterprise & Entrepreneurship

1.1.1The Dynamic Nature of Businesses1.1.2Risk & Reward1.1.3The Role of Business Enterprise1.1.4The Role of Business Enterprise 21.1.5The Role of the Entrepreneur1.1.6End of Topic Test - Dynamic Nature of Business1.1.7Grade 9 - Dynamic Nature of Business
1.2

Spotting a Business Opportunity

1.2.1Customer Needs1.2.2Market Research1.2.3Market Segmentation1.2.4The Competitive Environment1.2.5Primary & Secondary Market Research1.2.6End of Topic Test - Business Opportunities1.2.7Application Questions - Business Opportunities1.2.8Exam-Style Questions - Market Segmentation1.2.9Diagnostic Misconceptions - Competition
1.3

Putting a Business Idea into Practice

1.3.1Business Aims1.3.2Business Objectives1.3.3Business Revenues & Costs1.3.4Costs - Calculations1.3.5Revenue - Calculations1.3.6Business Profits & Break-Even Analysis1.3.7Profits & Losses - Calculations1.3.8Interest - Calculations1.3.9Cash & Cash Flow1.3.10Cash & Cash Flow 21.3.11Cash Flow - Calculations1.3.12Sources of Business Finance1.3.13End of Topic Test - Business in Practice1.3.14Grade 9 - Business in Practice1.3.15Exam-Style Questions - Business in Practice1.3.16Diagnostic Misconceptions - Profit1.3.17Diagnostic Misconceptions - Company vs Business1.3.18Diagnostic Misconceptions - Economies of Scale1.3.19Diagnostic Misconceptions - Cash Flow1.3.20Diagnostic Misconceptions - Break-even1.3.21Diagnostic Misconceptions - Fixed Costs
1.4

Making the Business Effective

1.4.1The Options for Start-Up & Small Businesses1.4.2Limited Liability1.4.3Franchising & Not-For-Profits1.4.4Business Location1.4.5The Marketing Mix1.4.6Business Plans1.4.7End of Topic Test - Effective Business1.4.8Application Questions - Effective Business1.4.9Exam-Style Questions - Business Plans
1.5

Business Stakeholders

1.5.1Business Stakeholders1.5.2Technology & Business1.5.3Legislation & Business1.5.4Legislation & Business 21.5.5The Economy & Business1.5.6External Influences1.5.7End of Topic Test - Business Stakeholders1.5.8Grade 9 - Business Stakeholders1.5.9Diagnostic Misconceptions - Recessions
2

Building a Business

2.1

Growing the Business

2.1.1Business Growth2.1.2Finance2.1.3Changes in Business Aims & Globalisation2.1.4Ethics & Business2.1.5The Environment & Business2.1.6End of Topic Test - Growing a Business2.1.7Application Questions - Growing a Business2.1.8Exam-Style Questions - Business Growth
2.2

Making Marketing Decisions

2.2.1Product2.2.2Product Life Cycle2.2.3Price2.2.4Pricing Methods2.2.5End of Topic Test - Product & Price2.2.6Grade 9 - Product & Price2.2.7Promotion & Advertising2.2.8PR & Sales Promotions2.2.9Sponsorship & Product Placement2.2.10Promotional Mix2.2.11End of Topic Test - Promotion2.2.12Application Questions - Promotion2.2.13Exam-Style Questions - Promotional Mix2.2.14Place & Wholesalers2.2.15Direct to Consumer2.2.16E-commerce & M-commerce2.2.17Diagnostic Misconceptions - Decreasing Price2.2.18Diagnostic Misconceptions - Advertise vs Promote2.2.19Diagnostic Misconceptions - Social Media
2.3

Making Operational Decisions

2.3.1Job Production2.3.2Batch & Flow Production2.3.3Working with Suppliers2.3.4Effective Supply Chains2.3.5Just In Time & Just In Case2.3.6Managing Quality2.3.7Total Quality Management2.3.8The Sales Process2.3.9End of Topic Test - Operational Decisions2.3.10Grade 9 - Operational Decisions2.3.11Exam-Style Questions - Managing Stock2.3.12Diagnostic Misconceptions - JIT vs JIC
2.4

Making Financial Decisions

2.4.1Gross Profit & Net Profit - Definitions2.4.2Gross Profit - Calculations2.4.3Net Profit - Calculations2.4.4Rate of Return2.4.5Rate of Return - Calculations2.4.6Research & Financial Data2.4.7Marketing Data2.4.8Percentage Change - Calculations
2.5

Making Human Resource Decisions

2.5.1Organisational Structures2.5.2Organisational Structures 22.5.3Recruitment2.5.4Effective Recruitment2.5.5Training a Workforce2.5.6Motivating a Workforce2.5.7End of Topic Tests - Human Resources2.5.8Application Questions - Human Resources2.5.9Exam-Style Questions - Human Resources2.5.10Diagnostic Misconceptions - Owners vs Shareholders2.5.11Diagnostic Misconceptions - Internal Recruitment2.5.12Diagnostic Misconceptions - Employee Motivation

Practice questions on Training a Workforce

Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.

  1. 1
    Which of these is unlikely to be an effect of increased staff productivity in service industries?Multiple choice
  2. 2
    How does training affect a workforce?True / false
  3. 3
    Which of these does not increase when employee training increases?Multiple choice
  4. 4
    What are the different methods of training?Fill in the list
  5. 5
    Which type of training is often done by a specialist instructor and tends to be more expensive?Multiple choice
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Effective Recruitment

Motivating a Workforce