Importance of Corporate Training for employees and the organization

Complicated tasks have become much easier to manage with the introduction of high-end technologies in corporate organizations. A large number of private as well as public institutions are introducing full-fledged corporate training, particularly in the Human Resource Division. Human Resource Managers can handle the workplace more effectively with the benefit of maximized resource utilization. The information is centralized on a single server which allows access and modification is much simpler manner.

In the last few decades, the corporate training programs and orientations introduced and conducted by human resources managers have dramatically changed in order to synchronize with organizational objectives. Any organization’s human resources department also plays a vital role in decision making. A growing number of human resource managers are opting for specialized corporate training to ensure staff have a better understanding of their duties and are more effective in achieving their professional goals.


Organizational decision making through corporate training is a very long process. Therefore, there is a great need for careful monitoring to get clear feedback on what follows after a corporate training program has been introduced. This will allow us to make suitable changes wherever required. For evaluation of corporate training program, the use of critique sessions, appraisal of change efforts, and comparison of pre- and post-training behavioral patterns are quite effective.

The highlighting characteristics and major steps in corporate trainings and decision making include

  • System Orientation
  • Collaborative approach
  • Problem Solving
  • Experimental Learning
  • Human Values
  • Contingency Orientation
  • Levels of Interventions
Advantages of Corporate Training
a) Increase in productivity

It takes a seasoned employee 3 to 5 years upon joining a company to become productive. Therefore, equipping an existing employee to handle the emerging business challenges will accelerate your productivity than just hiring new hands. Also, the more updated your workforce is with the latest industry trends, the better their productivity and output.

b) Reduction in employee attrition

Some corporate training courses are certificate courses that are well recognized and thus increase the value of the employee. It also shows the employee that he is appreciated and that the company is willing to invest in him. As a direct result, he will be happier staying on in the same company instead of looking for opportunities outside.

c) Gain a competitive business advantage

A better-skilled workforce can make a huge difference, especially in a saturated industry. They become capable leaders who take responsible decisions and also competent subject matter experts who can contribute better towards everyday business. This will make your company a better performing company, thus providing you an edge over the competition.


Training programs help show how individuals, teams, and departments unite together as a single organizational structure. Employees who know how their job role supports the overall mission and goals of their company can draw a line between “my work” and “my company’s success.”

E) Reduced turnover

Surveys have shown that today’s young professionals want more than just a paycheck. Millennials (aged 22-37 years old) particularly value employers that offer flexibility, professional development opportunities, and a sense of purpose. They are likely to change jobs if they are unhappy with their current role.

Facts and Figures

When it comes to employee training, some small businesses are torn. They want their workers to be well equipped and productive, but they fear that these newly trained folks will desert them for higher-paying jobs at larger companies. That’s a narrow view, and a potentially dangerous one. Companies that fail to develop their employees could be doing damage not only to morale, but to the bottom line as well. HR Magazine reports that companies investing $1,500 or more per employee per year on training average 24 percent higher profit margins than companies with lower yearly training investments. The American Society for Training and Development (ASTD) collected training information from over 2500 firms and found that companies that offer comprehensive training:

  • Have 218 percent higher income per employee than those with less comprehensive training,
  • Enjoy a 24 percent higher profit margin than those who spend less on training, and
  • Generate a 6 percent higher shareholder return if the training expenditure per employee increases by $680.
Not Investing in Corporate Training Is Risky Business

Starbucks recently announced what must be a coffeehouse first: low-cost college degrees for its employees, including part-timers. The caffeinated beverage giant is rolling out a program for employees who work at least half time to earn an online degree from Arizona State University. The tuition is deeply discounted, and employees can choose from a number of educational tracks. What’s more, Starbucks does not require workers to remain at the company upon completion of their degree.

Starbucks is taking a risk here, but it is one that’s calculated. Offering training of this type engenders goodwill, further solidifying the company’s position as an employer of choice and attracting college-minded young people. Starbucks is betting that, for however long they have these employees, they will serve the organization well. And that some of them will actually stay with the company and move into management positions.

IBM recently did a study to examine the percentage of capabilities that companies lose over time. When internal and external turnover, new technology and changes in businesses were factored in, the results were staggering. The study found that a company loses 10 to 30 percent of its original capabilities every year. Within three years, each company loses 41 percent of its staff. By year six, only 24 percent remain. Any business that doesn’t believe in training, evolving, and moving their people forward is paying a much steeper price than it realizes.


Investing in a corporate training program is a win-win for both the business and the employee. The employee can upskill and enrich his career path and use what he has learned to be more productive. This in turn, can help the business retain employees and thus see an increase in their overall productivity. Although corporate training includes both formal and informal learning and development initiatives, it ultimately turns an employee into a more efficient organizational professional.
So, to summarize it, we may conclude that corporate training is likely to be an investment where the return is a big business profit if the investment is done in a proper way and on suitable employees. And the program is conducted in a proper way.

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