IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE RETENTION ON AN EMPLOYEE
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IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE RETENTION ON AN EMPLOYEE
CHAPITRE ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Over the years, strong rivalry among diverse organisations has compelled corporate management to strategically align its people resources in order to achieve organisational goals. The need of training and development is evident, given the increasing complexity of the work environment, rapid organisational change, and technological improvement, among other things.
Training and development serve to ensure that organisational members have the information and skills necessary to execute their jobs effectively, take on new responsibilities, and adapt to changing situations.
Despite management professionals and the government’s understanding of the necessity of training and development, as indicated in white papers on various reforms in Nigeria,
the experience of personnel training and development and development in the Nigerian public sector has been more deception and waste. Until recently, there was widespread scepticism about investing in training and development in the public sector,
owing to the belief that “employees hired under a merit system must be presumed to be qualified, that they were already trained for their job, and that if this was not so, it was their fault” (Dessler, 2005).
Employee retention is extremely crucial in the global setting. The majority of businesses are evaluated based on their turnover rate. The rate of turnover has an impact on an organization’s performance.
Low turnover guarantees that organisations keep their competent personnel by providing them with a superior environment, which promotes individual employee performance.
Few firms have a lower turnover rate than SASGeneral Mills, which has a 2% turnover rate, and SC Johnson & Sons, Intel, Meridian Health, and National Instruments, which has a 3% turnover rate. It means that big international corporations are keeping their employees while also maintaining their great performance.
One of the most essential aspects in retaining staff in these organisations is training and development. Knowing the retention variables or the influence of training and development on retention might assist organisations retain personnel who have a high turnover rate.
In today’s competitive market, businesses are working hard to devise the best approach for increasing retention and decreasing turnover. Organisations have realised that employee talents can provide a competitive advantage.
Many retention techniques are established that are related to the supply of training and development to employees, as well as salary, among other things. According to Fheili (2007), organisations are not interested in delivering generalised training and development.
They are concentrating on specialised training and development that is pertinent to a certain role and renders personnel unfit for use by competitors. They restrict employees’ freedom to change jobs within an industry.
Organisations are looking for ways to make their staff more specialised rather than generalised, although the majority of organisations see training and development as an investment in their employees, with a return in the form of commitment and retention (Danlami Sani Abdul kadir et al 2012).
1.2 STATEMENT OF THE PROBLEM
High workforce turnover harms the organisation by increasing recruitment and selection expenses, delaying service delivery, and lowering staff morale. According to Kabungaidze et al. (2013), such actions have a significant impact on organisational success in today’s competitive economy due to their failure to retain the correct quality of people.
Most studies on the impact of training and development on employee retention have yielded inconclusive results (Coetzee and Schreuder 2013; Terera and Ngirande 2014).
Another factor is that, while numerous studies have been conducted on the impact of training and development in organisations, there has not been enough research in higher learning institutions to provide empirical support for the impact of training and development on attitudinal factors such as organisational commitment and employee retention, particularly among administrative staff in higher learning institutions.
As a result, the study intends to look into the impact of training and development on staff retention.
1.3 OBJECTIVES OF THE STUDY
The study’s major goal is to objectively assess the impact of training and development on employee retention in an organisation. The following are the study’s specific objectives:
Identifying the elements that contribute to significant staff turnover in an organisation.
Determine the impact of training and development, including the type and duration, on employee retention in an organisation.
To determine the extent to which managerial support and incentives influence employee retention.
1.4 RESEARCH QUESTIONS
The following research questions will be utilised for the study in order to steer it and achieve its objectives:
What variables contribute to significant staff turnover in an organisation?
What impact does training and development have on staff retention?
What effect do management support and rewards have on staff retention?
1.5 RESEARCH HYPOTHESIS
Ho: There is no substantial association between employee retention and training and development/development in an organisation.
Hi: Training and development/development have a substantial impact on staff retention in an organisation.
1.6 SIGNIFICANCE OF THE STUDY
The study will assist businesses in understanding the value of training and development programmes. It will also allow them to structure their training and development programmes to make them more efficient in terms of improving worker efficiency and resulting in lower employee turnover.
This also secures the presence of a skilled labour pool that can be used for national growth. Labour is a significant contributor to the company’s success. If labour is efficient, the company’s performance will improve.
Companies that perform well can increase output and contribute more to the economy. They are also able to expand and recruit more workers, which helps to reduce unemployment. Companies that do well are able to compete more effectively, allowing the economy to remain vibrant.
The study will also be useful to student researchers who want to learn more about the impact of training and development on overall employee performance in diverse organisations.
The study will act as a guide for these students, who will get additional insights into the study’s recommendations and conclusions, building an empirical literature for them.
1.7 SCOPE OF THE STUDY
The study is limited to the role and influence of training and development on the performance of First Bank personnel, with a focus on their branch office in Umuahia, Abia State. The branch office is an important First Bank site with a significant employee population.
1.8 DEFINITION OF TERMS
Training and development can be viewed as an organisational effort aimed at assisting an employee in acquiring basic skills required for the efficient and effective execution of the job for which he or she is engaged.
Planning: Is a technique by which an organisation guarantees that the appropriate amount of individuals with the appropriate talent/skill occupy the appropriate position within the organisation. It is a concerted effort made to achieve a specific goal.
Efficiency refers to an input-output relationship that achieves the most work in the least amount of time or space. It is a ‘Optimisation’ concept in which maximal satisfaction is delivered for a given outlay of resources.
Effectiveness refers to how frequently and perfectly a human or machine can carry out a task, resulting in a needed output that always results in an Organisational efficiency. “Effectiveness is thus a means to an end.”
Organisation is defined as two (2) or more people working together in a coordinated fashion to achieve group results.
Performance: The completion of a given work as judged against known predefined standards of correctness, completeness, cost, and speed. In a contract, performance is defined as the fulfilment of an obligation in such a way that the performer is released from all liabilities under the contract.
Productivity is the ratio of output to inputs in production; it is an average indicator of production efficiency. Production efficiency refers to a company’s ability to generate income, which is calculated using the formula real output value minus real input value.
Output: The term output refers to either an exit or modifications that exit a system and activate/modify a process. It is an abstract idea that is utilised in modelling, system(s) design, and system(s) operation.
Employee: An employee is somebody who has consented to be hired under a service contract to labour for a wage. Wages, salaries, commissions, and piece rates are all examples of compensation.
Employee Retention: This refers to an organization’s capacity to keep its staff.
Employee turnover is the amount or proportion of employees who leave a company and are replaced by new employees.
Seminar: In general, this is a type of academic teaching provided by an academic institution or a commercial or professional organisation. Its purpose is to bring together small groups for repeated sessions, each time concentrating on a different subject, in which everyone present is asked to actively participate.
Workshop: a small group of people together for an academic conference or job training and development.
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