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C H A P T E R 7 Retention and Motivation DISSATISFACTION ISN’T ALWAYS ABOUT PAY As an HR consultant, your job normally involves reviewing HR strategic plans and systems of small to medium size

companies, then making recommendations on how to improve. Most of the companies you work with do not have

large HR departments, and they find it less expensive to hire you than to hire a full-time person.

Your current client, Pacific Books, is a small online retailer with forty-seven employees. Pacific Books has had

some challenges, and as the economy has improved, several employees have quit. They want you to look into this

issue and provide a plan to improve retention.

Pacific Books currently has just one person managing payroll and benefits. The individual managers in the or-

ganization are the ones who handle other HR aspects, such as recruiting and developing compensation plans. As

you speak with the managers and the payroll and benefits manager, it is clear employees are not happy working for

this organization. You are concerned that if the company does not improve its employee retention, they will spend

an excessive amount of time trying to recruit and train new people, so retention of the current employees is

important.

As with most HR issues, rather than just guessing what employees want, you develop a survey to send to all

employees, including management. You developed the survey on SurveyMonkey and asked employee satisfaction

questions surrounding pay and benefits. However, you know that there are many other things that can cause

someone to be unhappy at work, so to take this survey a step further, you decide to ask questions about the type of

work employees are doing, management style, and work-life balance. Then you send out a link to all employees,

giving them one week to take the survey.

When the results come in, they are astounding. Out of the forty-seven employees, forty-three selected

“dissatisfied” on at least four or more areas of the five-question survey. While some employees are not happy with

pay and benefits, the results say that other areas of the organization are actually what are causing the dissatisfac-

tion. Employees are feeling micromanaged and do not have freedom over their time. There are also questions of fa-

voritism by some managers for some employees, who always seem to get the “best” projects. When you sit down

with the CEO to discuss the survey results, at first she defends the organization by saying the company offers the

highest salaries and best benefits in the industry, and she doesn’t understand how someone can be dissatisfied.

You explain to her that employee retention and motivation is partly about pay and benefits, but it includes other

aspects of the employee’s job, too. She listens intently and then asks you to develop a retention and motivation

plan that can improve the organization.

turnover

Replacement of employees who are fired or quit. The term is normally expressed as a percentage: the ratio of the number of workers who had to be replaced in a given period to the average number of workers at the organization.

voluntary turnover

The type of turnover that is initiated by the employee for many different reasons.

involuntary turnover

Turnover in which the employee has no choice in his or her termination—for example, employer-initiated due to nonperformance.

Beyond Compensation and Benefits Introduction

The author introduces the chapter on retention and motivation strategies.

1. THE COSTS OF TURNOVER

L E A R N I N G O B J E C T I V E S

1. Be able identify the difference between direct and indirect turnover costs. 2. Describe some of the reasons why employees leave. 3. Explain the components of a retention plan.

According to the book Keeping the People Who Keep You in Business by Leigh Branham,[1] the cost of losing an employee can range from 25 percent to 200 percent of that employee’s salary. Some of the costs cited revolve around customer service disruption and loss of morale among other employees, burnout of other employees, and the costs of hiring someone new. Losing an employee is called turnover.

There are two types of turnover, voluntary turnover and involuntary turnover. Voluntary turnover is the type of turnover that is initiated by the employee for many different reasons. Volun- tary turnover can be somewhat predicted and addressed in HR, the focus of this chapter. Involuntary turnover is where the employee has no choice in their termination—for example, employer-initiated due to nonperformance. This is discussed further in Chapter 9.

It has been suggested that replacement of an employee who is paid $8 per hour can range upwards of $4,000.[2] Turnover can be calculated by

separations during the time period (month)/total number of employees midmonth × 100 = the percentage of turnover.

For example, let’s assume there were three separations during the month of August and 115 em- ployees midmonth. We can calculate turnover in this scenario by

3/115 × 100 = 2.6% turnover rate.

This gives us the overall turnover rate for our organization. We may want to calculate turnover rates based on region or department to gather more specific data. For example, let’s say of the three separations, two were in the accounting department. We have ten people in the accounting depart- ment. We can calculate that by

accounting: 2/10 × 100 = 20% turnover rate.

View the video online at: http://app.wistia.com/embed/medias/0a9e3894a9

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direct turnover cost

Includes the cost of leaving, replacement costs, and transition costs.

indirect turnover cost

Includes the loss of production and reduced performance.

retention plan

A plan that outlines the strategies the organization will use to reduce turnover and address employee motivation.

The turnover rate in accounting is alarmingly high compared to our company turnover rate. There may be something happening in this department to cause unusual turnover. Some of the possible reas- ons are discussed in Section 1.

FIGURE 7.1 United States Yearly Turnover Statistics, 2001–11

Source: Data from Bureau of Labor Statistics, “Job Openings and Labor Turnover Survey,” accessed August 11, 2011, http://www.bls.gov/jlt/#data.

In HR, we can separate the costs associated with turnover into indirect costs and direct costs. Direct turnover costs include the cost of leaving, replacement costs, and transition costs, while indirect turnover costs include the loss of production and reduced performance. The following are some ex- amples of turnover costs:[3]

< Recruitment of replacements < Administrative hiring costs < Lost productivity associated with the time between the loss of the employee and hiring of

replacement < Lost productivity due to a new employee learning the job < Lost productivity associated with coworkers helping the new employee < Costs of training < Costs associated with the employee’s lack of motivation prior to leaving < Sometimes, the costs of trade secrets and proprietary information shared by the employee who

leaves < Public relations costs

To avoid these costs, development of retention plans is an important function of the HR strategic plan. Retention plans outline the strategies the organization will use to reduce turnover and address em- ployee motivation.

TABLE 7.1 Turnover Costs

Direct Indirect

Recruitment costs Lost knowledge

Advertising costs for new position Loss of productivity while new employee is brought up to speed

Orientation and training of new employee Cost associated with lack of motivation prior to leaving

Severance costs

Testing costs

Time to interview new replacements

Time to recruit and train new hires

Cost associated with loss of trade secrets

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Costs of Turnover in Hospitality

This video provides an excellent illustration of how to measure the cost of employee turnover in the hospitality industry.

1.1 Reasons for Voluntary Turnover Before we discuss specific details on retention planning, it is important to address the reasons why people choose to leave an organization to begin with. One mistake HR professionals and managers make is to assume people leave solely on the basis of their unhappiness with their compensation pack- ages. Many factors can cause demotivated employees, which we discuss in Section 2.

Once we find out what can cause voluntary turnover, we can develop retention strategies to reduce turnover. Some of the common reasons employees leave organizations can include the following:

1. A poor match between the job and the skills of the employee. This issue is directly related to the recruitment process. When a poor match occurs, it can cause frustration for the employee and for the manager. Ensuring the recruitment phase is viable and sound is a first step to making sure the right match between job and skills occurs.

2. Lack of growth. Some employees feel “stuck” in their job and don’t see a way to have upward mobility in the organization. Implementing a training plan and developing a clearly defined path to job growth is a way to combat this reason for leaving.

3. Internal pay equity. Some employees, while they may not feel dissatisfied with their own pay initially, may feel dissatisfaction when comparing their pay with others. Remember the pay equity theory discussed in Chapter 6? This theory relates to one reason why people leave.

4. Management. Many employees cite management as their reason for leaving. This can be attributed to overmanaging (micromanaging) people, managers not being fair or playing favorites, lack of or poor communication by managers, and unrealistic expectations of managers.

5. Workload. Some employees feel their workloads are too heavy, resulting in employees being spread thin and lacking satisfaction from their jobs, and possibly, lack of work-life balance as a result.

We know that some people will move or perhaps their family situation changes. This type of turnover is normal and expected. Figure 7.2 shows other examples of why people leave organizations.

View the video online at: http://www.youtube.com/v/YQsTzbd9P24

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FIGURE 7.3

Cost of employee turnover can be high for both the bottom line and employee morale.

FIGURE 7.2 Common Reasons for Employee Turnover

As HR professionals and managers, we want to be sure we have plans in place to keep our best people. One such plan is the retention plan, which we will discuss in Section 2.

Human Resource Recall

Do you feel your current or past organization did a good job of reducing turnover? Why or why not?

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high-performance work system (HPWS)

A set of systematic HR practices that create an environment where the employee has greater involvement and responsibility for the success of the organization.

K E Y T A K E A W A Y S

< Retaining employees is an important component to a healthy organization. Losing an employee is called turnover. Turnover can be very expensive to an organization, which is why it is important to develop retention plans to manage turnover.

< Voluntary turnover is turnover that is initiated by the employee, while involuntary turnover is initiated by the organization for various reasons such as nonperformance.

< Direct turnover costs and indirect turnover costs can include the costs associated with employee replacement, declining employee morale, or lost customers.

< Some of the reasons why employees leave can include a poor match between job and skills, no growth potential, pay inequity among employees, the fairness and communication style of management, and heavy workloads.

E X E R C I S E

1. Perform an Internet search of average employee turnover cost and report findings from at least three different industries or companies.

2. RETENTION PLANS

L E A R N I N G O B J E C T I V E S

1. Be able to discuss some of the theories on job satisfaction and dissatisfaction. 2. Explain the components of a retention plan.

Effective high-performance work systems (HPWS) is the name given to a set of systematic HR practices that create an environment where the employee has greater involvement and responsibility for the success of the organization. A high-performance work system is a strategic approach to many of the things we do in HR, including retention. Generally speaking, a HPWS gets employees involved in conceiving, designing, and implementing processes that are better for the company and better for the employee, which increases retention. Figure 7.4 gives an example of HR’s part in creating these systems.

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FIGURE 7.4 HR Components of a HPWS

Keeping HPWS in mind, we can begin to develop retention plans. The first step in this process is to un- derstand some of the theories on job satisfaction and dissatisfaction. Next, we can gather data as to the satisfaction level of our current employees. Then we can begin to implement specific strategies for em- ployee retention.

2.1 Theories on Job Dissatisfaction There are a number of theories that attempt to describe what makes a satisfied employee versus an un- satisfied employee. While you may have learned about these theories in another class, such as organiza- tional behavior, they are worth a review here to help us better understand employee satisfaction from an HR perspective.

Progression of Job Withdrawal

The first step to developing a retention plan is understanding some of the theories surrounding job sat- isfaction. One of the basic theories is the progression of job withdrawal theory, developed by Dan Far- rell and James Petersen.[4] It says that people develop a set of behaviors in succession to avoid their work situation. These behaviors include behavior change, physical withdrawal, and psychological withdrawal.

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Within the behavior change area, an employee will first try to change the situation that is causing the dissatisfaction. For example, if the employee is unhappy with the management style, he or she might consider asking for a department move. In the physical withdrawal phase, the employee does one of the following:

< Leaves the job < Takes an internal transfer < Starts to become absent or tardy

If an employee is unable to leave the job situation, he or she will experience psychological withdrawal. They will become disengaged and may show less job involvement and commitment to the organiza- tion, which can create large costs to the organization, such as dissatisfied customers.

FIGURE 7.5 Process of Job Withdrawal

Hawthorne Studies

Between 1927 and 1932, a series of experiments were conducted by Elton Mayo in the Western Electric Hawthorne Works company in Illinois.[5] Mayo developed these experiments to see how the physical and environmental factors of the workplace, such as lighting and break times, would affect employee motivation.

This was some of the first research performed that looked at human motivation at work. His res- ults were surprising, as he found that no matter which experiments were performed, worker output im- proved. His conclusion and explanation for this was the simple fact the workers were happy to receive attention from researchers who expressed interest in them. As a result, these experiments, scheduled to last one year, extended to five years to increase the knowledge base about human motivation.

The implication of this research applies to HR and managers even today. It tells us that our reten- tion plans must include training and other activities that make the employee feel valued.

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motivation factor

Part of a theory developed by Herzberg that says some things will motivate an employee, such as being given responsibility.

hygiene factor

Part of a theory developed by Herzberg that says some things will not necessarily motivate employees but will cause dissatisfaction if not present.

Maslow’s Hierarchy of Needs

In 1943, Abraham Maslow developed what was known as the theory of human motivation.[6] His the- ory was developed in an attempt to explain human motivation. According to Maslow, there is a hier- archy of five needs, and as one level of need is satisfied, it will no longer be a motivator. In other words, people start at the bottom of the hierarchy and work their way up. Maslow’s hierarchy consists of the following:

< Self-actualization needs < Esteem needs < Social needs < Safety needs < Physiological needs

Physiological needs are our most basic needs, including food, water, and shelter. Safety needs at work might include feeling safe in the actual physical environment, or job security. As humans, we have the basic need to spend time with others. Esteem needs refer to the need we have to feel good about ourselves. Finally, self-actualization needs are the needs we have to better ourselves.

The implications of his research tell us, for example, that as long as an employee’s physiological needs are met, increased pay may not be a motivator. Likewise, employees should be motivated at work by having all needs met. Needs might include, for example, fair pay, safety standards at work, oppor- tunities to socialize, compliments to help raise our esteem, and training opportunities to further devel- op ourselves.

Herzberg Two-Factor Theory

In 1959, Frederick Herzberg published The Motivation to Work,[7] which described his studies to de- termine which aspects in a work environment caused satisfaction or dissatisfaction. He performed in- terviews in which employees were asked what pleased and displeased them about their work. From his research, he developed the motivation-hygiene theory to explain these results.

The things that satisfied the employees were motivators, while the dissatisfiers were the hygiene factors. He further said the hygiene factors were not necessarily motivators, but if not present in the work environment, they would actually cause demotivation. In other words, the hygiene factors are ex- pected and assumed, while they may not necessarily motivate.

His research showed the following as the top six motivation factors: 1. Achievement 2. Recognition 3. The work itself 4. Responsibility 5. Advancement 6. Growth

The following were the top six hygiene factors: 1. Company policies 2. Supervision 3. Relationship with manager 4. Work conditions 5. Salary 6. Relationship with peers

The implication of this research is clear. Salary, for example, is on the hygiene factor list. Fair pay is ex- pected, but it doesn’t actually motivate someone to do a better job. On the other hand, programs to fur- ther develop employees, such as management training programs, would be considered a motivator. Therefore, our retention plans should be focused on the area of fair salary of course, but if they take the direction of Herzberg’s motivational factors, the actual motivators tend to be the work and recognition surrounding the work performed.

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theory X manager

According to McGregor, a type of manager who has a negative approach to employee motivation.

theory Y manager

According to McGregor, a type of manager who has a positive approach to employee motivation.

McGregor

Douglas McGregor proposed the X-Y theory in his 1960 book called The Human Side of Enterprise.[8] McGregor’s theory gives us a starting point to understanding how management style can impact the re- tention of employees. His theory suggests two fundamental approaches to managing people. Theory X managers, who have an authoritarian management style, have the following fundamental manage- ment beliefs:

< The average person dislikes work and will avoid it. < Most people need to be threatened with punishment to work toward company goals. < The average person needs to be directed. < Most workers will avoid responsibility.

Theory Y managers, on the other hand, have the following beliefs: < Most people want to make an effort at work. < People will apply self-control and self-direction in pursuit of company objectives. < Commitment to objectives is a function of expected rewards received. < People usually accept and actually welcome responsibility. < Most workers will use imagination and ingenuity in solving company problems.

As you can see, these two belief systems have a large variance, and managers who manage under the X theory may have a more difficult time retaining workers and may see higher turnover rates. As a result, it is our job in HR to provide training opportunities in the area of management, so our managers can help motivate the employees. Training is a large part of the retention plan. This will be addressed in more detail in Section 3.

Human Resource Recall

What are the disadvantages of taking a theory X approach with your employees?

Carrot and Stick

It is unknown for sure where this term was first used, although some believe it was coined in the 1700s during the Seven Years’ War. In business today, the stick approach refers to “poking and prodding” to get employees to do something. The carrot approach refers to the offering of some reward or incentive to motivate employees. Many companies use the stick approach, as in the following examples:

< If you don’t increase your sales by 10 percent, you will be fired. < Everyone will have to take a pay cut if we don’t produce 15 percent more than we are currently

producing. As you can see, the stick approach takes a punitive look at retention, and we know this may motivate for a short period of time, but not in the long term.

The carrot approach might include the following: < If you increase sales by 10 percent, you will receive a bonus. < If production increases by 15 percent, the entire team will receive an extra day off next month.

The carrot approach takes a much more positive approach to employee motivation but still may not be effective. For example, this approach can actually demotivate employees if they do not feel the goal is achievable. Also, if organizations use this as the only motivational technique, ignoring physiological re- wards such as career growth, this could be a detriment as well. This approach is used as a retention method, usually as part of a compensation plan.

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FIGURE 7.6

The carrot approach normally means some incentive will occur if expectations are met. The expectations should be attainable and shouldn’t be the only method used in retention planning and turnover reduction.

exit interview

An interview performed by HR or a manager that seeks information as to what the employee liked at the organization and what they see should be improved.

job descriptive index (JDI)

A standardized and widely used measure of job satisfaction, measuring five facets of job satisfaction.

All the employee satisfaction theories we have discussed have implications for the development of our retention plans and reduction of turnover. These theories can be intertwined into the specific re- tention strategies we will implement. This is discussed in Section 3.

2.2 Sources of Employee Satisfaction Data After we have an understanding of why employees leave and employee satisfaction theories, research is our next step in developing a retention plan that will work for your organization. There isn’t a “one size fits all” approach to retention planning, so the research component is essential to formulate a plan that will make a difference in turnover rates.

Research can be performed in two ways. First, exit interviews of employees who are leaving the or- ganization can provide important retention information. An exit interview is an interview performed by HR or a manager that seeks information as to what the employee liked at the organization and what they see should be improved. Exit interviews can be a valuable way to gather information about em- ployee satisfaction and can serve as a starting point for determining any retention issues that may exist in the organization. However, the exit survey data should be reviewed over longer periods of time with several employees, so we can be sure we are not making retention plans based on the feedback of only a few people.

S A M P L E E X I T I N T E R V I E W Q U E S T I O N S

1. What is your primary reason for leaving?

2. What did you like most about your job?

3. What did you like least about your job?

4. Did you feel there was room for growth in your job?

5. What incentives did you utilize while at our company?

6. Which incentives would you change and why?

7. Did you have enough training to do your job effectively?

The second way to perform research is through employee satisfaction surveys. A standardized and widely used measure of job satisfaction is the job descriptive index (JDI) survey. While JDI was ini- tially developed in 1969 at Bowling Green State University, it has gone through extensive revisions, the most recent one in 2009. JDI looks at five aspects of job satisfaction, including present job, present pay, opportunities for promotion, supervision, and coworkers.[9] Each of the five facets contains nine or eighteen questions; the survey can be given in whole or measure only one facet. The value of the scale is that an HR manager can measure job satisfaction over a period of time and compare current results to past results and even compare job satisfaction at their company versus their industry. This allows the HR manager to consider changes in the organization, such as a change in compensation structure, and see how job satisfaction is impacted by the change.

Any type of survey can provide information on the employee’s satisfaction with their manager, workload, and other satisfaction and motivational issues. An example of a general employee satisfac- tion survey is shown in Figure 7.7. However, a few things should be considered when developing an employee satisfaction survey:

1. Communicate the purpose and goal of the survey. 2. Once the survey is complete, communicate what changes have been made as a result of the

survey. 3. Assure employees their responses will be anonymous and private. 4. Involve management and leadership in the survey development. 5. Ask clear, concise questions that get at the root of morale issues.

Once data have been gathered and analyzed, we can formulate our retention plans. Our plan should al- ways be tied to the strategic goals of the organization and the HPWS previously developed, and aware- ness of motivational theories should be coupled with the plans. Here are the components of a retention plan:

1. JDI survey results, other survey results, and exit interview findings 2. Current retention plans, strengths, and weaknesses 3. Goals of a retention plan (e.g., reduce turnover by 10 percent)

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4. Individual strategies to meet retention and turnover reduction goals. 5. Budgeting. An understanding of how your retention plans will impact the payroll budget is

important. See Video 7.2 for an example on how to calculate turnover costs and compare those to costs saved with an effective retention strategy.

In Section 3, we will discuss the implementation of specific retention strategies.

FIGURE 7.7 A Sample Employee Satisfaction Survey

Source: “Sample Employee Satisfaction Surveys,” Zarca Interactive, accessed August 18, 2011, http://www.zarca.com/Online-Surveys-Employee/sample-employee-surveys.html.

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K E Y T A K E A W A Y S

< A high-performance work system (HPWS) is a set of systematic HR practices that create an environment where the employee has greater involvement and responsibility for the success of the organization. The overall company strategy should impact the HPWS HR develops in regard to retention.

< Retention plans are developed to address employee turnover, resulting in a more effective organization. < The first step in developing a retention plan is to use exit interviews and/or surveys to find out the

satisfaction level of employees. Once you have the data, you can begin to write the plan, making sure it is tied to the organizational objectives.

< A standardized and widely used measure of job satisfaction is the JDI survey, or the Job Descriptive Index. While JDI was initially developed in 1969 at Bowling Green State University, it has gone through extensive revisions, the most recent one in 2009. JDI looks at five aspects of job satisfaction, including present job, present pay, opportunities for promotion, supervision, and coworkers.[10]

< A retention plan normally consists of survey and exit interview analysis, any current plans and strengths and weaknesses of those plans, the goal of the retention plan, and finally, the specific strategies to be implemented.

< There are many motivation theories that attempt to explain people’s motivation or lack of motivation at work.

< The Hawthorne studies were a series of studies beginning in 1927 that initially looked at physical environments but found that people tended to be more motivated when they felt cared about. The implications to retention are clear, in that employees should feel cared about and developed within the organization.

< Maslow’s theory on motivation says that if someone already has a need met, giving them something to meet more of that need will no longer motivate. Maslow divided the needs into physiological, safety, social, esteem, and self-actualization needs. Many companies only motivate based on the low-level needs, such as pay. Development of training opportunities, for example, can motivate employees on high-level self-actualization needs.

< Herzberg developed motivational theories based on actual motivation factors and hygiene factors. Hygiene factors are those things that are expected in the workplace and will demotivate employees when absent but will not actually motivate when present. If managers try to motivate only on the basis of hygiene factors, turnover can be high. Motivation on both of his factors is key to a good retention plan.

< McGregor’s theory on motivation looked at managers’ attitudes toward employees. He found that theory X managers had more of a negative view of employees, while theory Y managers had a more positive view. Providing training to the managers in our organization can be a key retention strategy based on McGregor’s theory.

< The carrot-and-stick approach means you can get someone to do something by prodding or by offering some incentive to motivate them to do the work. This theory implies these are the only two methods to motivate, which of course, we know isn’t true. The implication of this in our retention plan is such that we must utilize a variety of methods to retain employees.

E X E R C I S E S

1. What types of things will motivate you in your career? Name at least five things. Where would these fit on Maslow’s hierarchy of needs and Herzberg’s two-factor theory?

2. How can you apply each of these motivation techniques to motivation theories?

a. Training

b. Employee recognition programs

c. Bonuses

d. Management training for your current managers

e. Profit sharing

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3. IMPLEMENTING RETENTION STRATEGIES

L E A R N I N G O B J E C T I V E

1. Explain the strategies and considerations in development of a retention plan.

As we have addressed so far in this chapter, retention and reduction of turnover is paramount to a healthy organization. Performing research, such as calculating turnover rates, doing exit interviews, and surveying employees’ satisfaction, are the first steps. Once this is done, understanding motivational theories and the application of them in the retention plan can help reduce turnover. Next, we can apply specific retention strategies to include in our plans, while keeping our budget in mind. Some of the re- tention strategies discussed have already or will be discussed in their own chapters, but they are cer- tainly worth a mention here as part of the overall plan.

3.1 Salaries and Benefits As we know from Chapter 6, a comprehensive compensation plan that includes not only pay but things such as health benefits and paid time off (PTO) is the first retention strategy that should be addressed. The compensation plan should not only help in recruitment of the right people but also help retain em- ployees. Utilizing a pay banding system, in which the levels of compensation for jobs are clearly defined, is one way to ensure fairness exists within internal pay structures.

As we know from this chapter, compensation is not everything. An employee can be well paid and have great benefits but still not be satisfied with the organization. Some of the considerations surround- ing pay as a way to retain employees include the following:

1. Instituting a standard process. Many organizations do not have set pay plans, which can result in unfairness when onboarding (the process of bringing someone “on board” with the company, including discussion and negotiation of compensation) or offering pay increases. Make sure the process for receiving pay raises is fair and defensible, so as not to appear to be discriminatory. This can be addressed in both your compensation planning process as well as your retention plan.

2. A pay communication strategy. Employees deserve to know how their pay rates are being determined. Transparency in the process of how raises are given and then communicating the process can help in your retention planning process.[11]

3. Paid time off. Is your organization offering competitive PTO? Consider implementing a PTO system that is based on the amount of hours an employee works. For example, rather than developing a policy based on hours worked for the company, consider revising the policy so that for every X number of hours worked, PTO is earned. This can create fairness for the salaried employee, especially for those employees who may work more than the required forty hours.

Please refer to Chapter 6 for more information on pay and benefits, and analyze how your compensa- tion plans could be negatively affecting your retention.

3.2 Training and Development To meet our higher level needs, humans need to experience self-growth. HR professionals and man- agers can help this process by offering training programs within the organization and paying for em- ployees to attend career skill seminars and programs. In addition, many companies offer tuition reim- bursement programs to help the employee earn a degree. Dick’s Drive-In, a local fast food restaurant in Seattle, Washington, offers $18,000 in scholarships over four years to employees working twenty hours per week. There is a six-month waiting period, and the employee must continue to work twenty hours per week. In a high turnover industry, Dick’s Drive-In boasts one of the highest retention rates around.

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performance appraisal

A method by which job performance is measured.

succession planning

A process for identifying and developing internal people who have the potential to fill positions.

How Would You Handle This?

You work for a small organization in the HR department. One of your web developers schedules a meeting with you, and during the meeting she says that she doesn’t see any career growth for her in the organization. As a result, she confides that she is planning to leave the organization as soon as she can find another job. She is one of the best developers you have and you would hate to lose her.

How Would You Handle This? The author discusses the How Would You Handle This situation in this chapter at: https://api.wistia.com/v1/ medias/1348713/embed.

3.3 Performance Appraisals Chapter 11, addresses performance appraisals. The performance appraisal is a formalized process to assess how well an employee does his or her job. The effectiveness of this process can contribute to em- ployee retention, in that employees can gain constructive feedback on their job performance, and it can be an opportunity for the manager to work with the employee to set goals within the organization. This process can help ensure the employee’s upper level self-actualization needs are met, but it also can ad- dress some of the motivational factors discussed by Herzberg, such as achievement, recognition, and responsibility.

Human Resource Recall

How important is PTO to you? How do you think the amount of PTO would affect your likelihood to accept one job over another?

3.4 Succession Planning Succession planning is a process of identifying and developing internal people who have the poten- tial for filling positions. As we know, many people leave organizations because they do not see career growth or potential. One way we can combat this in our retention plan is to make sure we have a clear succession planning process that is communicated to employees. Succession planning is sometimes called the talent bench, because successful companies always have talented people “on the bench” or ready to do the job should a key position become vacant. The goals of most succession plans include the following:[12]

< Identify high-potential employees capable of advancing to positions of higher responsibility. < Ensure the development of these individuals to help them be “ready” to earn a promotion into a

new position. < Ensure diversity in the talent bench by creating a formal succession planning process.

Succession planning must be just that: planned. This allows clear communication to the employees on how they can further develop within the organization, and it helps them see what skills they should master before that time comes. Chapter 8 will provide more information on how to develop and imple- ment a succession plan.

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https://api.wistia.com/v1/medias/1348713/embed

outcome fairness

The judgment that people make with respect to the outcomes they receive versus the outcomes received by others with whom they associate.

procedural justice

The process used to determine the outcomes received.

Examples of Retention Strategies at Michels Corporation

This video addresses some “real world” retention strategies used at Michels Corporation, a utility contractor services company.

3.5 Flextime, Telecommuting, and Sabbaticals According to a Salary.com survey, the ability to work from home and flexible work schedules are be- nefits that would entice an employee to stay in their job.[13] The ability to implement this type of reten- tion strategy might be difficult, depending on the type of business. For example, a retailer may not be able to implement this, since the sales associate must be in the store to assist customers. However, for many professions, it is a viable option, worth including in the retention plan and part of work-life bal- ance, which we will discuss in Section 3.

Some companies, such as Recreational Equipment Incorporated, based in Seattle, offer twelve weeks of unpaid leave per year (beyond the twelve weeks required under the Family and Medical Leave Act) for the employee to pursue volunteering or traveling opportunities. In addition, with fifteen years of service with the company, paid sabbaticals are offered, which include four weeks plus already earned vacation time.

3.6 Management Training As we discuss in Section 1, a manager can affect an employee’s willingness to stay on the job. In a re- cent Gallup poll of one million workers, a poor supervisor or manager is the number one reason why people leave their jobs.[14] Managers who bully, use the theory X approach, communicate poorly, or are incompetent may find it difficult to motivate employees to stay within the organization. While in HR we cannot control a manager’s behavior, we can provide training to create better management. Train- ing of managers to be better communicators and motivators is a way to handle this retention issue. We will discuss training further in Chapter 8.

3.7 Conflict Management and Fairness Perceptions on fairness and how organizations handle conflict can be a contributing factor to reten- tion. Outcome fairness refers to the judgment that people make with respect to the outcomes they re- ceive versus the outcomes received by others with whom they associate with. When people are deciding if something is fair, they will likely look at procedural justice, or the process used to determine the outcomes received. There are six main areas employees will use to determine the outcome fairness of a conflict:

1. Consistency. The employee will determine if the procedures are applied consistently to other persons and throughout periods of time.

2. Bias suppression. The employee perceives the person making the decision does not have bias or vested interest in the outcome.

3. Information accuracy. The decision made is based on correct information.

View the video online at: http://www.youtube.com/v/rsO8CwFiFxw

CHAPTER 7 RETENTION AND MOTIVATION 159

mediation

When a neutral third party from outside the organization hears both sides of a dispute and tries to get the parties to come to a resolution.

arbitration

When an outside person hears both sides of a conflict and makes a specific decision about how things should proceed.

4. Correctability. The decision is able to be appealed and mistakes in the decision process can be corrected.

5. Representativeness. The employee feels the concerns of all stakeholders involved have been taken into account.

6. Ethicality. The decision is in line with moral societal standards. For example, let’s suppose JoAnn just received a bonus and recognition at the company party for her contributions to an important company project. Another employee, Sam, might compare his inputs and outputs and determine it was unfair that JoAnn was recognized because he had worked on bigger projects and not received the same recognition or bonus. When we look at how our retention strategies are developed, we want to be sure they can apply to everyone in the organization; otherwise it may cause retention problems. Some of the procedures questioned could include the following:

< How time off is requested < How assignments of the “best” projects are given < Division of work < Promotion processes < Pay processes

While some of these policies may seem minor, they can make a big difference in retention. Besides de- velopment of fair policies, we should be sure that the policies are clearly communicated and any pro- cesses are communicated as well. These types of policies should be revisited yearly and addressed in the retention plan if it appears they are causing employee dissatisfaction.

In addition to a sense of fairness within the organization, there should be a specific way (process) of managing conflict. If the organization is unionized, it is likely a grievance process is already in place to handle many types of conflicts. We will discuss this process in greater detail in Chapter 12. There are four basic steps to handle conflict. First, the individuals in conflict should try to handle the conflict by discussing the problem with one another. If this doesn’t work, a panel of representatives from the or- ganization should hear both sides of the dispute and make a recommendation. If this doesn’t work, the organization may want to consider mediation and, in extreme cases, arbitration. In mediation, a neut- ral third party from outside the organization hears both sides of a dispute and tries to get the parties to come to a resolution, while in arbitration, an outside person hears both sides and makes a specific de- cision about how things should proceed.

Fortune 500 Focus

With over nineteen thousand employees in sixty countries, Google has seen its share of retention problems.[15]

In late 2010, Googlers left the organization en masse to work for Facebook or Twitter.[16] Many who left were looking for pre–initial public offering (IPO) organizations to work with, something that Google couldn’t com- pete with, since it went IPO in April 2004. As a result of the high turnover, Google put its mathematical al- gorithms to work to determine which employees were most likely to leave, allowing HR to determine what departments to focus on in their retention plans. In 2011, Google gave every employee a 10 percent pay raise, and it continues to offer a variety of new and old perks, such as free food in any of its cafeterias, 20 percent of time to work on personal projects, and $175 peer spot bonuses. Google also offers free laundry services, climb- ing walls, tuition reimbursement, child-care centers, financial planning classes, and matching funds (up to $3,000 per employee) to nonprofit organizations. For all this, Google ranked number four on Fortune magazine’s list of 100 best companies to work for in 2011.[17] Some say it isn’t the perks, high pay, or bonuses but the company culture that Google creates. A weekly all-hands meeting with the founders, where people are encouraged to ask the founders questions, and a team focus meeting where everyone shares ideas are ex- amples of the company culture Google creates. Google exemplifies the importance of culture in retention of employees.

3.8 Job Design, Job Enlargement, and Empowerment As we have discussed previously, one of the reasons for job dissatisfaction is the job itself. Ensuring we are appropriately matching skills with the job when we do our initial hiring is important. Revisiting the recruitment plan and selection process should be a consideration.

160 HUMAN RESOURCE MANAGEMENT

job enrichment

Adding more meaningful tasks to enhance a job and make the employee’s work more rewarding.

job enlargement

Adding new challenges or responsibilities to a current job.

FIGURE 7.8

Some companies offer unique benefits to reduce turnover. An on-site yoga class is an example of a unique, although expensive, benefit to consider including in a retention plan.

employee empowerment

A way to involve employees in their work by allowing them to make decisions and act upon those decisions, with the support of the organization.

Job enrichment means to enhance a job by adding more meaningful tasks to make the employ- ee’s work more rewarding. For example, if a retail salesperson is good at creating eye-catching displays, allow him or her to practice this skill and assign tasks revolving around this. Job enrichment can fulfill the higher level of human needs while creating job satisfaction at the same time. In fact, research in this area by Richard Hackman and Greg Oldham[18] found that employees need the following to achieve job satisfaction:

< Skill variety, or many different activities as part of the job < Task identity, or being able to complete one task from beginning to end < Task significance, or the degree to which the job has impact on others, internally or externally < Autonomy, or freedom to make decisions within the job < Feedback, or clear information about performance

In addition, job enlargement, defined as the adding of new challenges or responsibilities to a current job, can create job satisfaction. Assigning employees to a special project or task is an example of job en- largement. Be cautioned, though, that some employees may resent additional work, and job enlarge- ment could actually be a demotivator. Otherwise, knowing the employee and his or her goals and adding work that can be an end to these goals is the best way to achieve retention through job enlargement.

Employee empowerment involves employees in their work by allowing them to make decisions and act upon those decisions, with the support of the organization. Em- ployees who are not micromanaged and who have the power to determine the sequence of their own work day, for example, tend to be more satisfied than those who are not empowered. Empowerment can include the following:

< Encourage innovation or new ways of doing things. < Make sure employees have the information they need to do their jobs; for

example, they are not dependent on managers for information in decision making.

< Use management styles that allow for participation, feedback, and ideas from employees.

3.9 Pay-for-Performance Strategies In Chapter 6, we discussed several pay-for-performance strategies we can implement to motivate our employees. A pay-for-performance strategy means that employees are re- warded for meeting preset objectives within the organization. For example, in a merit- based pay system, the employee is rewarded for meeting or exceeding performance during a given time period. Rather than a set pay increase every year, the increase is based on performance. Some organizations offer bonuses to employees for meeting ob- jectives, while some organizations offer team incentive pay if a team achieves a specific, predetermined outcome. For example, each player on the winning team of the 2010 NFL Super Bowl earned a team bonus of $83,000,[19] while the losing team of the Super Bowl took home $42,000. Players also earn money for each wild card game and payoff game. Some organizations also offer profit sharing, which is tied to a company’s overall performance. Gain sharing, different from profit sharing, focuses on im- provement of productivity within the organization. For example, the city of Loveland in Colorado im- plemented a gain-sharing program that defined three criteria that needed to be met for employees to be given extra compensation. The city revenues had to exceed expenses, expenses had to be equal to or less than the previous year’s expenses, and a citizen satisfaction survey had to meet minimum requirements.

To make sure a pay-for-performance system works, the organization needs to ensure the following:

< Standards are specific and measureable. < The system is applied fairly to all employees. < The system is communicated clearly to employees. < The best work from everyone in the organization is encouraged. < Rewards are given to performers versus nonperformers. < The system is updated as the business climate changes. < There are substantial rewards for high performers.

CHAPTER 7 RETENTION AND MOTIVATION 161

As we have already addressed, pay isn’t everything, but it certainly can be an important part of the em- ployee retention plan and strategy.

Pay for Performance: Teachers

This video shows an example of a new pay-for-performance plan for teachers in South Carolina.

3.10 Work-Life Balance Work-life balance discussions originated during the 1960s and 1970s and pertained mostly to working mothers’ meeting the demands of family and work. During the 1980s, the realization that meeting a work-life balance is important (for all, not just working mothers) resulted in companies such as IBM implementing flextime and home-based work solutions. The growing awareness of the work-life bal- ance problem continued into the 1990s, when policies were developed and implemented but not acted upon by managers and employees, according to Jim Bird in Employment Relations Today.[20] Today, work-life balance is considered an important topic, so much so that the World at Work Society offers special certifications in this area. The World at Work certification programs focus on creation of suc- cessful programs to attract, retain, and motivate employees.

Karol Rose, author of Work Life Effectiveness,[21] says that most companies look at a systems ap- proach of work-life balance, instead of a systems and individual approach. The systems approach to work-life balance includes policies and procedures that allow people flexibility, such as telecommuting and flextime options.

According to Rose, looking at the individual differences is equally as important as the systems ap- proach. Brad Harrington, the director of Boston College’s Center for Work and Family, stresses this issue: “Work-life balance comes down, not to an organizational strategy, but to an individual strategy.” For example, a single parent has a different work-life balance need than someone without children. In other words, as HR professionals, we can create work-life balance systems, but we should also look at individual approaches. For example, at Recreational Equipment Incorporated (REI),[22] they use the systems approach perspective and offer paid time off and sabbaticals, but their employee assistance program also offers access to services, referrals, and free consulting for the individual to find his or her perfect work-life balance. For this, REI receives a number nine ranking on Fortune’s list of best com- panies to work for in the area of work-life balance.

The company culture can contribute greatly to work-life balance. Some organizations have a cul- ture of flexibility that fares well for workers who do not want to feel tethered to an office, while some workers prefer to be in the office where more informal socializing can occur. While some companies promote work-life balance on paper, upper management needs to let employees know it is OK to take advantage of the alternatives to create a positive work-life balance. For example, companies place different levels of value on work-life options such as telecommuting. An organization may have a tele- commuting option, but the employees must feel it is OK to use these options. Even in a company that has work-life balance systems, a manager who sends e-mails at 10 p.m. on Saturday night could be sending the wrong message to employees about the expectations, creating an environment in which work-life balance is not practiced in reality. O’Neill, a surf gear company in California, sends a strong message to its employees by offering half-day Fridays during the summer,[23] so employees can get a head start on the weekend.

Jim Bird, in his work-life balance article in Employment Relations Today, suggests implementing a work-life balance training program that is dual purpose (can serve both personal interests and

View the video online at: http://www.youtube.com/v/FBzBPlh-K30

162 HUMAN RESOURCE MANAGEMENT

professional development). In other words, implement trainings in which the employee can develop both personal skills and interests that can translate into higher productivity at work.

Besides the training program, Bird suggests creating a monthly work-life newsletter as an educa- tional tool to show the company’s commitment to work-life balance. The newsletter can include inter- views from respected employees and tips on how to create a work-life balance.

Finally, training managers on the importance of work-life balance and how to create a culture that embraces this is a key way to use work-life balance as a retention strategy.

3.11 Other Retention Strategies According to Fortune’s “100 Best Companies to Work For,”[24] retention strategies that are more un- usual might be part of your retention plan. Some strategies from the list might include the following:

< On-site daycare or daycare assistance < Gym memberships or on-site gyms < Concierge service to assist in party planning or dog grooming, for example < On-site dry cleaning drop-off and pickup < Car care, such as oil changes, on-site once a week < On-site doggie daycare < On-site yoga or other fitness classes < “Summer Fridays,” when all employees work half days on Fridays during the summer < Various support groups for cancer survivors, weight loss, or support in caring for aging parents < Allowance for fertility treatment benefits < On-site life coaches < Peer-to-peer employee recognition programs < Management recognition programs

While some of these options may not work in your organization, we must remember to be creative when our goal is to retain our best employees and reduce turnover in our organizations. The bottom line is to create a plan and make sure the plan is communicated to all employees.

CHAPTER 7 RETENTION AND MOTIVATION 163

K E Y T A K E A W A Y S

< Once you determine the employee’s level of satisfaction through exit interviews and surveys and understand motivational theories, you can begin to develop specific retention strategies.

< Of course, salary and benefits are a major component of retention strategies. Consistent pay systems and transparent processes as to how raises occur must be included in a retention plan (and compensation strategy).

< Training and development meets the higher level needs of the individual. Many companies offer paid tuition programs, reimbursement programs, and in-house training to increase the skills and knowledge of the employee.

< Performance appraisals provide an avenue for feedback and goal setting. They also allow for employees to be recognized for their contributions.

< Succession plans allow employees to see how they can continue their career with the organization, and they clearly detail what employees need to do to achieve career growth, without leaving your organization.

< Flextime and telecommuting options are worth considering as an addition to your retention plan. These types of plans allow the employee flexibility when developing his or her schedule and some control of his or her work. Some companies also offer paid or unpaid sabbaticals after a certain number of years with the company to pursue personal interests.

< Since one of the reasons people are dissatisfied at their job is because of the relationship with their manager, providing in-house training to all management team members to help them become better communicators and better managers can trickle down to the employee level, creating better relationships and resulting in better retention and less turnover.

< Reviewing company policies to ensure they are fair can contribute to better retention. For example, how projects are assigned or the process for requesting vacation time can contribute to dissatisfaction if the employee feels the processes are not fair.

< Review the job design to ensure the employee is experiencing growth within their job. Changing the job through empowerment or job enlargement to help the growth of the employee can create better retention.

< Other, more unique ways of retaining employees might include offering services to make the employee’s life easier, such as dry cleaning, daycare services, or on-site yoga classes.

E X E R C I S E

1. Research two different companies you might be interested in working for. When reviewing their list of benefits, which ones are offered that might motivate someone to stay with the organization?

4. CASES AND PROBLEMS

Chapter Summary

< Retaining employees is an important component to a healthy organization. Losing an employee is called turnover.

< Direct turnover costs and indirect turnover costs can include the costs associated with employee replacement, declining employee morale, or lost customers.

< Retention plans are developed to address employee turnover, resulting in a more effective organization.

< The first step in developing a retention plan is to use exit interviews and/or surveys to find out the satisfaction level of employees. Once you have the data, you can begin to write the plan, making sure it is tied to the organizational objectives.

164 HUMAN RESOURCE MANAGEMENT

< A retention plan normally consists of survey and exit interview analysis, any current plans and strengths and weaknesses of those plans, the goal of the retention plan, and the specific strategies to be implemented.

< There are many motivation theories that attempt to explain people’s motivation or lack of motivation at work.

< Maslow’s theory on motivation says that if someone already has a need met, giving them something to meet more of that need will no longer motivate. Maslow divided the needs into physiological, safety, social, esteem, and self-actualization needs. Many companies only motivate based on the low- level needs, such as pay. Development of training opportunities, for example, can motivate employees on high-level self-actualization needs.

< The carrot-and-stick approach means you can get someone to do something by prodding or offering some incentive to motivate them to do the work. This theory implies these are the only two methods to motivate, which we know isn’t true. The implication of this in our retention plan is such that we must utilize a variety of methods to retain employees.

< Once you determine the employee’s level of satisfaction through exit interviews and surveys and understand motivational theories, you can develop specific retention strategies.

< Performance appraisals provide an avenue for feedback and goal setting. They also allow for employees to be recognized for their contributions.

< Succession plans allow employees to see how they can continue their career with the organization, and they clearly detail what employees need to do to achieve career growth-without leaving your organization.

< Other, more unique ways of retaining employees might include offering services to make the employee’s life easier, such as dry cleaning, daycare services, or on-site yoga classes.

CHAPTER 7 RETENTION AND MOTIVATION 165

Chapter Summary The author provides a video summary of the chapter.

Chapter Case

Turnover Analysis

You recently completed your company’s new compensation plan. You are happy with the results but know there is more to retaining the employees than just pay, and you don’t currently have a retention plan. Your or- ganization is a large staffing firm, consisting of several offices on the West Coast. The majority of employees are staffing recruiters, and they fill full-time and temporary positions for a variety of clients. One of the chal- lenges you face is a difference in geographical areas, and as a result, there are differences in what may motiv- ate employees.

As you initially look at turnover numbers, you have the sense that turnover has increased over the last six months. Your initial thoughts are the need for a better retention strategy, utilizing a bonus structure as well as other methods of retention. Currently, your organization pays a straight salary to employees, does not offer flextime or telecommuting options, focuses on individual performance (number of staffing placements) rather than team performance, and provides five days of vacation for every two years with the organization.

Month Separated Employees Total Number of Employees Midmonth

March 12 552

April 14 541

May 16 539

June 20 548

July 22 545

1. Calculate monthly turnover for the past six months.

2. What are the possible reasons for turnover in your organization and other organizations?

3. What steps would you take to remedy the situation?

Team Activity

1. Following is a list of some possible retention strategies. Rank each one in order of importance to you as an employee (1 being the most important), then share your rankings with classmates:

a. Salary

b. Opportunity for bonuses, profit sharing

c. Benefits

d. Opportunity to grow professionally with the organization

e. Team bonuses

f. More paid time off

g. Option to telecommute

View the video online at: http://app.wistia.com/embed/medias/abe13a6d85

166 HUMAN RESOURCE MANAGEMENT

h. Flextime scheduling

i. Sense of empowerment

j. Tuition reimbursement

k. Job satisfaction

CHAPTER 7 RETENTION AND MOTIVATION 167

6. 7.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

ENDNOTES

Leigh Branham, Keeping the People Who Keep You in Business (New York: American Management Association, 2000), 6.

Noel Paiement “It Will Cost You $4,000 to Replace Just One $8 per Hour Employee,” Charity Village, July 13, 2009, accessed August 30, 2011, http://www.charityvillage.com/cv/research/rhr50.html.

Carl. P. Maertz, Jr. and M. A. Campion, “25 Years of Voluntary Turnover Research: A Review and Critique,” in International Review of Industrial and Organizational Psycho- logy, vol. 13, ed. Cary L. Cooper and Ivan T. Robertson (London: John Wiley, 1998), 49–86.

Dan Farrell and James C. Petersen, “Commitment, Absenteeism and Turnover of New Employees: A Longitudinal Study,” Human Relations 37, no. 8 (August 1984): 681–692, accessed August 26, 2011, http://libres.uncg.edu/ir/uncg/f/ J_Petersen_Commitment_1984.pdf.

Elton Mayo, The Social Problems of an Industrial Civilization (1949; repr., New York: Arno Press, 2007).

Abraham Maslow, Toward a Psychology of Being, 3rd ed. (New York: Wiley, 1999).

Frederick Herzberg, Bernard Mausner, and Barbara Bloch Snyderman, The Motivation to Work (New Brunswick, NJ: Transaction Publishers, 1993).

Douglas McGregor, The Human Side of Enterprise (1960; repr., New York: McGraw-Hill, 2006).

“Job Descriptive Index,” JDI Research Group, Bowling Green State University, ac- cessed July 29, 2011, http://www.bgsu.edu/departments/psych/io/jdi/ page54706.html.

“The Knowledge of Pay Study,” WorldatWork and The LeBlanc Group LLC, 2010, ac- cessed February 26, 2011, http://www.worldatwork.org/waw/Content/research/ html/research-home.jsp.

William J. Rothwell and H. C. Kazanas, Building In-House Leadership and Management Development Programs: Their Creation, Management, and Continuous Improvement (Westport, CT: Quorum Books, 1999), 131.

“Employee Job Satisfaction and Retention Survey, 2007/2008,” Salary.com, 2008, ac- cessed February 26, 2011, http://www.salary.com/docs/resources/ JobSatSurvey_08.pdf.

“No. 1 Reason People Quit Their jobs,” AOL News, Netscape, n.d., accessed July 28, 2011, http://webcenters.netscape.compuserve.com/whatsnew/ package.jsp?name=fte/quitjobs/quitjobs&floc=wn-dx.

“Our Philosophy,” Google, n.d., accessed July 28, 2011, http://www.google.com/ about/corporate/company/tenthings.html.

Ben Popper, “Why Google’s Retention Plan Backfired,” CBS Business Network, September 16, 2010, accessed July 28, 2011, http://www.bnet.com/blog/high-tech/ why-googles-retention-plan-backfired/1172.

“100 Best Companies to Work For,” CNN Money, 2011, accessed July 28, 2011, http://money.cnn.com/magazines/fortune/bestcompanies/2011/snapshots/4.html.

Robert N. Ford, Motivation through the Work Itself (New York: American Management Association, 1969); William J. Paul, Keith B. Robertson, and Frederick Herzberg, “Job Enrichment Pays Off,” Harvard Business Review, March–April 1969, 61–78.

Darren Rovell, “How Much Do Players Get Paid for Winning the Super Bowl?” CNBC Sports, January 18, 2011, accessed July 29, 2011, http://www.cnbc.com/id/41138354/ How_Much_Do_Players_Get_Paid_For_Winning_the_Super_Bowl.

Jim Bird, “Work-Life Balance: Doing It Right and Avoiding the Pitfalls,” Employment Relations Today 33, no. 3 (2006), reprinted on WorkLifeBalance.com, accessed July 29, 2011, http://www.worklifebalance.com/assets/pdfs/article3.pdf.

Karol Rose, Work-life Effectiveness: Bottom-line Strategies for Today’s Workplace (Scottsdale, AZ: World at Work Press, 2006).

“Pay and Benefits: Total Rewards at REI,” Recreational Equipment Incorporated, n.d., accessed July 29, 2011, http://www.rei.com/jobs/pay.html.

“Vans, Quiksilver, and California Top Skate Companies Offer Dream Careers to FIDM’s Graphic Design School Grads,” Fashion News, June 4, 2011, accessed July 29, 2011, http://www.fashionnews.com/2011/06/04/ vans-quiksilver-californias-top-skate-companies-offer-dream-careers-to-fidms-graphic -design-school-grads.

“100 Best Companies to Work For,” CNN Money, 2011, accessed February 26, 2011, http://money.cnn.com/galleries/2011/news/companies/1101/ gallery.bestcompanies_unusual_perks.fortune/5.html.

168 HUMAN RESOURCE MANAGEMENT

http://www.charityvillage.com/cv/research/rhr50.html

http://libres.uncg.edu/ir/uncg/f/J_Petersen_Commitment_1984.pdf

http://www.bgsu.edu/departments/psych/io/jdi/page54706.html

http://www.worldatwork.org/waw/Content/research/html/research-home.jsp

http://www.salary.com/docs/resources/JobSatSurvey_08.pdf

http://webcenters.netscape.compuserve.com/whatsnew/package.jsp?name=fte/quitjobs/quitjobs&floc=wn-dx

http://www.google.com/about/corporate/company/tenthings.html

http://www.bnet.com/blog/high-tech/why-googles-retention-plan-backfired/1172

http://money.cnn.com/magazines/fortune/bestcompanies/2011/snapshots/4.html

http://www.cnbc.com/id/41138354/How_Much_Do_Players_Get_Paid_For_Winning_the_Super_Bowl

http://www.worklifebalance.com/assets/pdfs/article3.pdf

http://www.rei.com/jobs/pay.html

http://www.fashionnews.com/2011/06/04/vans-quiksilver-californias-top-skate-companies-offer-dream-careers-to-fidms-graphic-design-school-grads

http://money.cnn.com/galleries/2011/news/companies/1101/gallery.bestcompanies_unusual_perks.fortune/5.html

C H A P T E R 8 Training and Development TRAINING: NOT LIKE IT USED TO BE Imagine this: You have a pile of work on your desk and as you get started, your Outlook calendar reminds you

about a sexual harassment training in ten minutes. You groan to yourself, not looking forward to sitting in a confer-

ence room and seeing PowerPoint slide after PowerPoint slide. As you walk to the conference room, you run into a

colleague who is taking the same training that day and commiserate on how boring this training is probably going

to be. When you step into the conference room, however, you see something very different.

Computers are set up at every chair with a video ready to start on the computer. The HR manager greets you

and asks you to take a seat. When the training starts, you are introduced (via video) on each of the computers to a

series of sexual harassment example scenarios. The videos stop, and there is a recorded discussion about what the

videos portrayed. Your colleagues in the Washington, DC, office are able to see the same training and, via video

conferencing, are able to participate in the discussions. It is highly interactive and interesting. Once the training is

finished, there are assignments to be completed via specific channels that have been set up for this training. You

communicate about the material and complete the assignments in teams with members of your Washington, DC,

office. If you want to review the material, you simply click on a review and the entire session or parts of the training

can be reviewed. In fact, on your bus ride home from work, you access the channels on your iPhone, chatting with a

colleague in your other office about the sexual harassment training assignment you have due next week. You re-

ceive an e-mail from your HR manager asking you to complete a training assessment located in a specific channel

in the software, and you happily comply because you have an entirely new perspective on what training can be.

This is the training of today. No longer do people sit in hot, stuffy rooms to get training on boring content.

Training has become highly interactive, technical, and interesting owing to the amount of multimedia we can use.

Sun Microsystems, for example, has developed just the kind of software mentioned above, called Social Learning

eXchange (SLX). This type of training allows people across the country to connect with each other, saving both

money and time. In fact, Sun Microsystems received a Best Practices Award from Training Magazine for this innovat-

ive software in 2010.[1] The SLX software allows training to be delivered in an interactive manner in multiple loca-

tions. The implications of this type of software are numerous. For example, SLX is used at Sun Professional Services

division by delivering instructional videos on tools and software, which employees can view at their own pace.[2]

There is also a channel in the software that allows the vice president to communicate with employees on a regular

basis to improve employee communications. In another example, this software can be used to quickly communic-

ate product changes to the sales team, who then begin the process of positioning their products to consumers.

Training videos, including breakout sessions, can save companies money by not requiring travel to a session. These

can even be accessed using application technology on cell phones. Employees can obtain the training they need in

the comfort of their own city, office, or home. Someone is sick the day the training is delivered? No problem; they

can review the recorded training sessions.

employee training and development

The framework used to help employees develop their personal and organizational skills, knowledge, and abilities.

employee orientation

The process used for welcoming a new employee into the organization.

An estimated $1,400 per employee is spent on training annually, with training costs consuming 2.72 percent of

the total payroll budget[3] for the average company. With such a large amount of funds at stake, HR managers must

develop the right training programs to meet the needs; otherwise, these funds are virtually wasted. This chapter is

all about how to assess, develop, implement, and measure an effective training program.

Training and Development Introduction

The author introduces the chapter on training and development.

1. STEPS TO TAKE IN TRAINING AN EMPLOYEE

L E A R N I N G O B J E C T I V E

1. Explain the four steps involved when training an employee.

Any effective company has training in place to make sure employees can perform his or her job. Dur- ing the recruitment and selection process, the right person should be hired to begin with. But even the right person may need training in how your company does things. Lack of training can result in lost productivity, lost customers, and poor relationships between employees and managers. It can also res- ult in dissatisfaction, which means retention problems and high turnover. All these end up being direct costs to the organization. In fact, a study performed by the American Society for Training and Devel- opment (ASTD) found that 41 percent of employees at companies with poor training planned to leave within the year, but in companies with excellent training, only 12 percent planned to leave.[4] To reduce some costs associated with not training or undertraining, development of training programs can help with some of the risk. This is what this chapter will address.

For effective employee training, there are four steps that generally occur. First, the new employee goes through an orientation, and then he or she will receive in-house training on job-specific areas. Next, the employee should be assigned a mentor, and then, as comfort with the job duties grows, he or she may engage in external training. Employee training and development is the process of helping employees develop their personal and organization skills, knowledge, and abilities.

1.1 Employee Orientation The first step in training is an employee orientation. Employee orientation is the process used for welcoming a new employee into the organization. The importance of employee orientation is two-fold. First, the goal is for employees to gain an understanding of the company policies and learn how their specific job fits into the big picture. Employee orientation usually involves filling out employee paper- work such as I-9 and 401(k) program forms.

View the video online at: http://app.wistia.com/embed/medias/12acc0064b

170 HUMAN RESOURCE MANAGEMENT

The goals of an orientation are as follows: 1. To reduce start-up costs. If an orientation is done right, it can help get the employee up to speed

on various policies and procedures, so the employee can start working right away. It can also be a way to ensure all hiring paperwork is filled out correctly, so the employee is paid on time.

2. To reduce anxiety. Starting a new job can be stressful. One goal of an orientation is to reduce the stress and anxiety people feel when going into an unknown situation.

3. To reduce employee turnover. Employee turnover tends to be higher when employees don’t feel valued or are not given the tools to perform. An employee orientation can show that the organization values the employee and provides tools necessary for a successful entry.

4. To save time for the supervisor and coworkers. A well-done orientation makes for a better prepared employee, which means less time having to teach the employee.

5. To set expectations and attitudes. If employees know from the start what the expectations are, they tend to perform better. Likewise, if employees learn the values and attitudes of the organization from the beginning, there is a higher chance of a successful tenure at the company.

Some companies use employee orientation as a way to introduce employees not only to the company policies and procedures but also to the staff. For an example of an orientation schedule for the day, see Figure 8.1.

FIGURE 8.1

Some companies have very specific orientations, with a variety of people providing information to the new hires. This can create a welcoming environment, besides giving the employee the information they need. This is an example of one such orientation.

Source: Sample schedule courtesy of Louis Stokes Cleveland VA Medical Center, http://www.cleveland.va.gov/docs/NEOSchedule.pdf (accessed

September 2, 2011).

CHAPTER 8 TRAINING AND DEVELOPMENT 171

in-house training program

Learning opportunities developed by the organization in which they are used.

mentor

A trusted and experienced advisor who has direct investment in the development of an employee.

Human Resource Recall

Have you ever participated in an orientation? What was it like? What components did it have?

1.2 In-House Training In-house training programs are learning opportunities developed by the organization in which they are used. This is usually the second step in the training process and often is ongoing. In-house training programs can be training related to a specific job, such as how to use a particular kind of software. In a manufacturing setting, in-house training might include an employee learning how to use a particular kind of machinery.

Many companies provide in-house training on various HR topics as well, meaning it doesn’t al- ways have to relate to a specific job. Some examples of in-house training include the following:

< Ethics training < Sexual harassment training < Multicultural training < Communication training < Management training < Customer service training < Operation of special equipment < Training to do the job itself < Basic skills training

As you can tell by the list of topics, HR might sometimes create and deliver this training, but often a su- pervisor or manager delivers the training.

1.3 Mentoring After the employee has completed orientation and in-house training, companies see the value in offer- ing mentoring opportunities as the next step in training. Sometimes a mentor may be assigned during in-house training. A mentor is a trusted, experienced advisor who has direct investment in the devel- opment of an employee. A mentor may be a supervisor, but often a mentor is a colleague who has the experience and personality to help guide someone through processes. While mentoring may occur in- formally, a mentorship program can help ensure the new employee not only feels welcomed but is paired up with someone who already knows the ropes and can help guide the new employee through any on-the-job challenges.

To work effectively, a mentoring program should become part of the company culture; in other words, new mentors should receive in-house training to be a mentor. Mentors are selected based on ex- perience, willingness, and personality. IBM’s Integrated Supply Chain Division, for example, has suc- cessfully implemented a mentorship program. The company’s division boasts 19,000 employees and half of IBM’s revenues, making management of a mentorship program challenging. However, potential mentors are trained and put into a database where new employees can search attributes and strengths of mentors and choose the person who closely meets their needs. Then the mentor and mentee work together in development of the new employee. “We view this as a best practice,” says Patricia Lewis- Burton, vice president of human resources, Integrated Supply Chain Division. “We view it as something that is not left to human resources alone. In fact, the program is imbedded in the way our group does business.”[5]

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FIGURE 8.2

In-house training occurs when someone from within the company is delivering the training information, while external training is usually delivered by someone who does not work for the company and is not physically on-site.

external training

Any type of training that is not performed in-house, such as seminars or conferences.

Some companies use short-term mentorship programs because they find employees training other employees to be valuable for all involved. Starbucks, for example, utilizes this approach. When it opens a new store in a new market, a team of experienced store managers and baristas are sent from existing stores to the new stores to lead the store-opening efforts, including training of new employees.[6]

1.4 External Training External training includes any type of training that is not performed in-house. This is usually the last step in training, and it can be ongoing. It can include sending an employee to a seminar to help further develop leadership skills or helping pay tuition for an employee who wants to take a marketing class. To be a Ford automotive technician, for example, you must attend the Ford ASSET Program, which is a partnership between Ford Motor Company, Ford dealers, and select technical schools.[7]

How Would You Handle This?

To Train or Not to Train

Towanda Michaels is the human resource manager at a medium-size pet supply wholesaler. Casey Cleps is a salesperson at the organization and an invaluable member of the team. Last year, his sales brought in about 20 percent of the company revenue alone. Everybody likes Casey: he is friendly, competent, and professional.

Training is an important part of the company, and an e-mail was sent last month that said if employees do not complete the required safety training by July 1, they would be let go.

It is July 15, and it has just come to Towanda’s attention that Casey has not completed the online safety train- ing that is required for his job. When she approaches him about it, he says, “I am the best salesperson here; I can’t waste time doing training. I already know all the safety rules anyway.”

Would you let Casey go, as stated in the e-mail? How would you handle this?

How Would You Handle This? The author discusses the How Would You Handle This situation in this chapter at: https://api.wistia.com/v1/ medias/1348781/embed.

K E Y T A K E A W A Y S

< Employee training and development is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. Training is important to employee retention.

< There are four steps in training that should occur. Employee orientation has the purpose of welcoming new employees into the organization. An effective employee orientation can help reduce start-up costs, reduce anxiety for the employee, reduce turnover, save time for the supervisor and colleagues, and set expectations and attitudes.

< An in-house training program is any type of program in which the training is delivered by someone who works for the company. This could include management or HR. Examples might include sexual harassment training or ethics training. In-house training can also include components specific to a job, such as how to use a specific kind of software. In-house training is normally done as a second and ongoing step in employee development.

< A mentor form of training pairs a new employee with a seasoned employee. This is usually the third step in employee training. A mentor program for training should include a formalized program and process.

< External training is any type of training not performed in-house; part of the last training step, external training can also be ongoing. It can include sending employees to conferences or seminars for leadership development or even paying tuition for a class they want to take.

E X E R C I S E S

1. Why do you think some companies do not follow the four training steps? What are the advantages of doing so?

2. What qualities do you think a mentor should have? List at least five.

3. Have you ever worked with a mentor in a job, at school, or in extracurricular activities? Describe your experience.

CHAPTER 8 TRAINING AND DEVELOPMENT 173

https://api.wistia.com/v1/medias/1348781/embed

technical training

A type of training meant to teach new employees the technological aspects of their job.

quality training

Refers to familiarizing all employees with the means for preventing, detecting, and eliminating nonquality items.

ISO9000

The set of standards for quality management.

ISO14000

The set of standards for environmental management.

2. TYPES OF TRAINING

L E A R N I N G O B J E C T I V E

1. Be able to explain and give examples of the types of training that can be offered within an organization.

There are a number of different types of training we can use to engage an employee. These types are usually used in all steps in a training process (orientation, in-house, mentorship, and external training). The training utilized depends on the amount of resources available for training, the type of company, and the priority the company places on training. Companies such as The Cheesecake Factory, a family restaurant, make training a high priority. The company spends an average of $2,000 per hourly em- ployee. This includes everyone from the dishwasher and managers to the servers. For The Cheesecake Factory, this expenditure has paid off. They measure the effectiveness of its training by looking at turnover, which is 15 percent below the industry average.[8] Servers make up 40 percent of the work- force and spend two weeks training to obtain certification. Thirty days later, they receive follow-up classes, and when the menu changes, they receive additional training.[9] Let’s take a look at some of the training we can offer our employees.

As you will see from the types of training below, no one type would be enough for the jobs we do. Most HR managers use a variety of these types of training to develop a holistic employee.

2.1 Technical or Technology Training Depending on the type of job, technical training will be required. Technical training is a type of training meant to teach the new employee the technological aspects of the job. In a retail environment, technical training might include teaching someone how to use the computer system to ring up custom- ers. In a sales position, it might include showing someone how to use the customer relationship man- agement (CRM) system to find new prospects. In a consulting business, technical training might be used so the consultant knows how to use the system to input the number of hours that should be charged to a client. In a restaurant, the server needs to be trained on how to use the system to process orders. Let’s assume your company has decided to switch to the newest version of Microsoft Office. This might require some technical training of the entire company to ensure everyone uses the techno- logy effectively. Technical training is often performed in-house, but it can also be administrered externally.

2.2 Quality Training In a production-focused business, quality training is extremely important. Quality training refers to familiarizing employees with the means of preventing, detecting, and eliminating nonquality items, usually in an organization that produces a product. In a world where quality can set your business apart from competitors, this type of training provides employees with the knowledge to recognize products that are not up to quality standards and teaches them what to do in this scenario. Numerous organizations, such as the International Organization for Standardization (ISO), measure quality based on a number of metrics. This organization provides the stamp of quality approval for companies pro- ducing tangible products. ISO has developed quality standards for almost every field imaginable, not only considering product quality but also certifying companies in environmental management quality. ISO9000 is the set of standards for quality management, while ISO14000 is the set of standards for environmental management. ISO has developed 18,000 standards over the last 60 years.[10] With the in- crease in globalization, these international quality standards are more important than ever for business development. Some companies, like 3M,[11] choose to offer ISO training as external online training, employing companies such as QAI to deliver the training both online and in classrooms to employees.

Training employees on quality standards, including ISO standards, can give them a competitive advantage. It can result in cost savings in production as well as provide an edge in marketing of the quality-controlled products. Some quality training can happen in-house, but organizations such as ISO also perform external training.

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skills training

Includes training on proficiencies needed to actually perform the job.

soft skills

Personality traits, social graces, communication, and personal habits that are used to characterize relationships with other people.

professional training

A type of training that keeps an employee up to date in one’s professional field.

2.3 Skills Training Skills training, the third type of training, includes proficiencies needed to actually perform the job. For example, an administrative assistant might be trained in how to answer the phone, while a salesper- son at Best Buy might be trained in assessment of customer needs and on how to offer the customer in- formation to make a buying decision. Think of skills training as the things you actually need to know to perform your job. A cashier needs to know not only the technology to ring someone up but what to do if something is priced wrong. Most of the time, skills training is given in-house and can include the use of a mentor. An example of a type of skills training is from AT&T and Apple,[12] who in summer 2011 asked their managers to accelerate retail employee training on the iPhone 5, which was released to mar- ket in the fall.

Continuing Education Matters

A small business owner explains the advantages of offering informal skills training about new products.

2.4 Soft Skills Training Our fourth type of training is called soft skills training. Soft skills refer to personality traits, social graces, communication, and personal habits that are used to characterize relationships with other people. Soft skills might include how to answer the phone or how to be friendly and welcoming to cus- tomers. It could include sexual harassment training and ethics training. In some jobs, necessary soft skills might include how to motivate others, maintain small talk, and establish rapport.

In a retail or restaurant environment, soft skills are used in every interaction with customers and are a key component of the customer experience. In fact, according to a Computerworld magazine sur- vey, executives say there is an increasing need for people who have not only the skills and technical skills to do a job but also the necessary soft skills, such as strong listening and communication abilit- ies.[13] Many problems in organizations are due to a lack of soft skills, or interpersonal skills, not by problems with the business itself. As a result, HR and managers should work together to strengthen these employee skills. Soft skills training can be administered either in-house or externally.

2.5 Professional Training and Legal Training In some jobs, professional training must be done on an ongoing basis. Professional training is a type of training required to be up to date in one’s own professional field. For example, tax laws change of- ten, and as a result, an accountant for H&R Block must receive yearly professional training on new tax codes.[14] Lawyers need professional training as laws change. A personal fitness trainer will undergo yearly certifications to stay up to date in new fitness and nutrition information.

Some organizations have paid a high cost for not properly training their employees on the laws re- lating to their industry. In 2011, Massachusetts General Hospital paid over $1 million in fines related to privacy policies that were not followed.[15] As a result, the organization has agreed to develop training for workers on medical privacy. The fines could have been prevented if the organization had provided the proper training to begin with. Other types of legal training might include sexual harassment law training and discrimination law training.

View the video online at: http://www.youtube.com/v/Ltx0WEmrxBU

CHAPTER 8 TRAINING AND DEVELOPMENT 175

FIGURE 8.3

Professional training is normally given externally and is usually required for specific professions in which updates occur often, as in the accounting industry.

team training

A process that empowers teams to improve decision making, problem solving, and team-development skills to achieve business results.

managerial training

The type of training that occurs when someone has been identified as a good manager candidate. Could include soft skills training, technical training, and skills training.

safety training

Training employees so they are protected from injuries caused by work-related accidents.

2.6 Team Training Do you know the exercise in which a person is asked to close his or her eyes and fall back, and then supposedly the team members will catch that person? As a team-building exercise (and a scary one at that), this is an example of team training. The goal of team training is to develop cohesiveness among team members, allowing them to get to know each other and facilitate relationship building. We can define team training as a process that empowers teams to improve decision making, problem solving, and team-development skills to achieve business results. Often this type of training can occur after an organization has been restructured and new people are working together or perhaps after a merger or acquisition. Some reasons for team training include the following:

< Improving communication < Making the workplace more enjoyable < Motivating a team < Getting to know each other < Getting everyone “onto the same page,” including goal setting < Teaching the team self-regulation strategies < Helping participants to learn more about themselves (strengths and weaknesses) < Identifying and utilizing the strengths of team members < Improving team productivity < Practicing effective collaboration with team members

Team training can be administered either in-house or externally. Ironically, through the use of techno- logy, team training no longer requires people to even be in the same room.

Human Resource Recall

What kind of team training have you participated in? What was it like? Do you think it accomplished what it was supposed to accomplish?

2.7 Managerial Training After someone has spent time with an organization, they might be identified as a candidate for promo- tion. When this occurs, managerial training would occur. Topics might include those from our soft skills section, such as how to motivate and delegate, while others may be technical in nature. For ex- ample, if management uses a particular computer system for scheduling, the manager candidate might be technically trained. Some managerial training might be performed in-house while other training, such as leadership skills, might be performed externally.

For example, Mastek, a global IT solutions and services provider, provides a program called “One Skill a Month,” which enables managers to learn skills such as delegation, coaching, and giving feed- back. The average number of total training days at Mastek is 7.8 per employee[16] and includes mana- gerial topics and soft skills topics such as e-mail etiquette. The goal of its training programs is to in- crease productivity, one of the organization’s core values.

2.8 Safety Training Safety training is a type of training that occurs to ensure employees are protected from injuries caused by work-related accidents. Safety training is especially important for organizations that use chemicals or other types of hazardous materials in their production. Safety training can also include evacuation plans, fire drills, and workplace violence procedures. Safety training can also include the following:

< Eye safety < First aid < Food service safety < Hearing protection < Asbestos

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Occupational Safety and Health Administration (OSHA)

The main federal agency charged with enforcement of safety and health regulation in the United States.

< Construction safety < Hazmat safety

The Occupational Safety and Health Administration, or OSHA, is the main federal agency charged with enforcement of safety and health regulation in the United States. OSHA provides external training to companies on OSHA standards. Sometimes in-house training will also cover safety training.

Starbucks Training Video

This is a short video Starbucks uses to train new employees on customer service.

Please view this video at http://www.youtube.com/watch?v=OAmftgYEWqU.

K E Y T A K E A W A Y S

< There are several types of training we can provide for employees. In all situations, a variety of training types will be used, depending on the type of job.

< Technical training addresses software or other programs that employees use while working for the organization.

< Quality training is a type of training that familiarizes all employees with the means to produce a good- quality product. The ISO sets the standard on quality for most production and environmental situations. ISO training can be done in-house or externally.

< Skills training focuses on the skills that the employee actually needs to know to perform their job. A mentor can help with this kind of training.

< Soft skills are those that do not relate directly to our job but are important. Soft skills training may train someone on how to better communicate and negotiate or provide good customer service.

< Professional training is normally given externally and might be obtaining certification or specific information needed about a profession to perform a job. For example, tax accountants need to be up to date on tax laws; this type of training is often external.

< Team training is a process that empowers teams to improve decision making, problem solving, and team- development skills. Team training can help improve communication and result in more productive businesses.

< To get someone ready to take on a management role, managerial training might be given. < Safety training is important to make sure an organization is meeting OSHA standards. Safety training can

also include disaster planning.

E X E R C I S E S

1. Which type of training do you think is most important for an administrative assistant? What about for a restaurant server? Explain your answer.

2. Research OSHA. What are some of the new standards and laws it has recently developed? Outline a training plan for the new standards.

3. TRAINING DELIVERY METHODS

L E A R N I N G O B J E C T I V E

1. Explain the types of training delivery methods.

Depending on the type of training occurring, you may choose one delivery method over another. This section discusses the types of delivery methods we can use to execute the types of training. Keep in mind, however, that most good training programs will use a variety of delivery methods.

CHAPTER 8 TRAINING AND DEVELOPMENT 177

http://www.youtube.com/watch?v=OAmftgYEWqU

on-the-job coaching

Refers to the training of an employee by an approved person to learn the skills necessary to complete the tasks.

FIGURE 8.4

On-the-job coaching is similar to mentoring. Think of on-the-job coaching as more skills- based training, while mentoring is usually a training delivery method that is more long term and goes beyond just showing the employee skills to do the job.

mentoring

A process by which an employee can be trained and developed, through use of an experienced person.

Wendy’s Grill Training, circa 1989

This excellent training video was used at Wendy’s to teach employees how to grill the perfect burger. Although the video is over twenty years old, the concepts used in it are still true today.

3.1 On-the-Job Coaching Training Delivery On-the-job coaching is one way to facilitate employee skills training. On-the-job coaching refers to an approved person training an employee on the skills necessary to complete tasks. A manager or someone with experience shows the employee how to perform the actual job. The selection of an on- the-job coach can be done in a variety of ways, but usually the coach is selected based on personality, skills, and knowledge. This type of skills training is normally facilitated in-house. The disadvantage of this training revolves around the person delivering the training. If he or she is not a good communicat- or, the training may not work. Likewise, if this person has “other things to do,” he or she may not spend as much time required to train the person and provide guidance. In this situation, training can frustrate the new employee and may result in turnover.

3.2 Mentoring and Coaching Training Delivery Mentoring is also a type of training delivery. A mentor is a trusted, experienced advisor who has direct investment in the development of an employee. Mentoring is a process by which an employee can be trained and developed by an experienced person. Normally, mentoring is used as a continuing method to train and develop an employee. One disadvantage of this type of training is possible communication style and personal- ity conflict. It can also create overdependence in the mentee or micromanagement by the mentor. This is more different than on-the-job coaching, which tends to be short term and focuses on the skills needed to perform a particular job.

View the video online at: http://www.youtube.com/v/IUKDspx0LZ0

178 HUMAN RESOURCE MANAGEMENT

brown bag lunch training

Training occurs during lunchtime, employees bring their lunch, and someone presents training information to them.

web-based training

Involves the use of technology to facilitate training.

synchronous

A web-based training delivery method in which the delivery uses instructor-led facilitation.

asynchronous

A web-based training delivery method in which the delivery is self-directed.

3.3 Brown Bag Lunch Training Delivery Brown bag lunches are a training delivery method meant to create an informal atmosphere. As the name suggests, brown bag lunch training is one in which the training occurs during lunchtime, em- ployees bring their food, and someone presents training information to them. The trainer could be HR or management or even another employee showing a new technical skill. Brown bag lunches can also be an effective way to perform team training, as it brings people together in a more relaxed atmosphere. Some companies offer brown bag lunch training for personal development as well. For example, HR might want to bring in a specialist on 401(k) plans, or perhaps an employee provides a slide presenta- tion on a trip he or she has taken, discussing the things learned on the trip. One disadvantage to this type of training can be low attendance and garnering enough interest from employees who may not want to “work” during lunch breaks. There can also be inconsistency in messages if training is de- livered and not everyone is present to hear the message.

Human Resource Recall

What types of brown bag lunch training would employees be most willing to attend? Do you think this type of training should be required?

3.4 Web-Based Training Delivery Web-based training delivery has a number of names. It could be called e-learning or Internet-based, computer-based, or technology-based learning. No matter what it is called, any web-based training involves the use of technology to facilitate training. There are two types of web-based learning. First, synchronous learning uses instructor-led facilitation. Asynchronous learning is self-directed, and there is no instructor facilitating the course. There are several advantages to web-based training. First, it is available on demand, does not require travel, and can be cost efficient. However, disadvantages might include an impersonal aspect to the training and limited bandwidth or technology capabilit- ies.[17]

Web-based training delivery lends itself well to certain training topics. For example, this might be an appropriate delivery method for safety training, technical training, quality training, and professional training. However, for some training, such as soft-skills training, job skills training, managerial train- ing, and team training, another more personalized method may be better for delivery. However, there are many different platforms that lend themselves to an interactive approach to training, such as Sun Microsystems’ Social Learning eXchange (SLX) training system, which has real-time video and record- ing capabilities. Hundreds of platforms are available to facilitate web-based training. DigitalChalk, for example, allows for both synchronous and asynchronous training and allows the instructor or human relations manager to track training progress and completion.[18] Some companies use SharePoint, an intranet platform, to store training videos and materials.[19] Blackboard and Angel (used primarily by higher education institutions) allows human resource managers to create training modules, which can be moderated by a facilitator or managed in a self-paced format. In any of the platforms available, me- dia such as video and podcasts can be included within the training.

Considerations for selecting a web-based platform include the following: < Is there a one-time fee or a per-user fee? < Do the majority of your employees use a Mac or a PC, and how does the platform work with both

systems? < Is there enough bandwidth in your organization to support this type of platform? < Is the platform flexible enough to meet your training needs? < Does the software allow for collaboration and multimedia? < Is there training for the trainer in adoption of this system? Is technical support offered?

CHAPTER 8 TRAINING AND DEVELOPMENT 179

job shadowing

A training delivery method that places an employee who already has the skills with another employee who wants to develop those skills.

job swapping

A method for training in which two employees agree to change jobs for a period of time.

3.5 Job Shadowing Training Delivery Job shadowing is a training delivery method that places an employee who already has the skills with another employee who wants to develop those skills. Apprenticeships use job shadowing as one type of training method. For example, an apprentice electrician would shadow and watch the journeyman electrician perform the skills and tasks and learn by watching. Eventually, the apprentice would be able to learn the skills to do the job alone. The downside to this type of training is the possibility that the person job shadowing may learn “bad habits” or shortcuts to performing tasks that may not be benefi- cial to the organization.

Fortune 500 Focus

It takes a lot of training for the Walt Disney Company to produce the best Mickey Mouse, Snow White, Aladdin, or Peter Pan. In Orlando at Disneyworld, most of this training takes place at Disney University. Disney University provides training to its 42,000 cast members (this is what Disney calls employees) in areas such as culinary arts, computer applications, and specific job components. Once hired, all cast members go through a two-day Dis- ney training program called Traditions, where they learn the basics of being a good cast member and the his- tory of the company. For all practical purposes, Traditions is a new employee orientation.

Training doesn’t stop at orientation, though. While all positions receive extensive training, one of the most ex- tensive trainings are especially for Disney characters, since their presence at the theme parks is a major part of the customer experience. To become a character cast member, a character performer audition is required. The auditions require dancing and acting, and once hired, the individual is given the job of several characters to play. After a two-week intensive training process on character history, personalities, and ability to sign the names of the characters (for the autograph books sold at the parks for kids), an exam is given. The exam tests competency in character understanding, and passing the exam is required to become hired.[20]

While Disney University trains people for specific positions, it also offers an array of continuing development courses called Disney Development Connection. Disney says in 2010, more than 3,254,596 hours were spent training a variety of employees,[21] from characters to management. The training doesn’t stop at in-house training, either. Disney offers tuition reimbursement up to $700 per credit and pays for 100 percent of books and $100 per course for cost of other materials. In 2010, Disney paid over $8 million in tuition expenses for cast members.[22]

Disney consistently ranks in “America’s Most Admired Companies” by Fortune Magazine, and its excellent train- ing could be one of the many reasons.

3.6 Job Swapping Training Delivery Job swapping is a method for training in which two employees agree to change jobs for a period of time. Of course, with this training delivery method, other training would be necessary to ensure the employee learns the skills needed to perform the skills of the new job. Job swap options can be motiva- tional to employees by providing a change of scenery. It can be great for the organization as well to cross-train employees in different types of jobs. However, the time spent learning can result in unpro- ductive time and lost revenue.

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FIGURE 8.5

Vestibule training is also known as “near site” training and can work great for many types of training needs, such as team training and technical training.

vestibule training

Training is performed near-site in conference rooms, lecture rooms, and classrooms.

3.7 Vestibule Training Delivery In vestibule training, training is performed near the worksite in conference rooms, lecture rooms, and classrooms. This might be an appropriate method to deliver orientations and some skills-based training. For example, to become a journeyman electrician, an apprentice performs job shadowing, on- the-job training, and vestibule training to learn the law and codes related to electricity installation. During the busy holiday season, Macy’s uses vestibule training to teach new hires how to use the cash register system and provides skills training on how to provide great customer service.[23]

Many organizations use vestibule training for technical training, safety training, professional train- ing, and quality training. It can also be appropriate for managerial training, soft skills training, and team training. As you can tell, this delivery method, like web-based training delivery, is quite versatile. For some jobs or training topics, this may take too much time away from performing the actual “job,” which can result in lost productivity.

3.8 International Assignment Training Since we are working within a global economy, it might be necessary to provide training to employees who are moving overseas or working overseas. Up to 40 percent of international assignments are ter- minated early because of a lack of international training.[24] Ensuring success overseas is reliant upon the local employee’s learning how to navigate in the new country. The following topics might be in- cluded in this type of training:

1. Cultural differences and similarities 2. Insight and daily living in the country 3. Social norms and etiquette 4. Communication training, such as language skills

This training is best delivered by a professional in the region or area in which the employee will be working. We discuss this topic in more detail in Chapter 14.

K E Y T A K E A W A Y S

< Training delivery methods are important to consider, depending on the type of training that needs to be performed.

< Most organizations do not use only one type of training delivery method; a combination of many methods will be used.

< On-the-job coaching delivery method is a training delivery method in which an employee is assigned to a more experienced employee or manager to learn the skills needed for the job. This is similar to the mentor training delivery method, except a mentor training method is less about skills training and more about ongoing employee development.

< Brown bag lunch training delivery is normally informal and can involve personal development as well as specific job-related skills.

< Web-based training is any type of training that is delivered using technology. < There are numerous platforms that can be used for web-based training and considerations, such as cost,

when selecting a platform for use.

< A synchronous training method is used for web-based training and refers to delivery that is led by a facilitator. An asynchronous training method is one that is self-directed.

< Job shadowing is a delivery method consisting of on-the-job training and the employee’s learning skills by watching someone more experienced.

< To motivate employees and allow them to develop new skills, job swapping training delivery may be used. This occurs when two people change jobs for a set period of time to learn new skills. With this method, it is likely that other methods will also be used, too.

< Vestibule training delivery is also known as “near site” training. It normally happens in a classroom, conference room, or lecture room and works well to deliver orientations and some skills-based training. Many organizations also use vestibule training for technical training, safety training, professional training, and quality training.

< Since many companies operate overseas, providing training to those employees with international assignments can better prepare them for living and working abroad.

CHAPTER 8 TRAINING AND DEVELOPMENT 181

E X E R C I S E S

1. Do an Internet search on web-based training. Discuss two of the platforms you found. What are the features and benefits?

2. Which training delivery method do you think you personally would prefer in a job and why?

3. What do you see as advantages and disadvantages to each type of training method?

4. DESIGNING A TRAINING PROGRAM

L E A R N I N G O B J E C T I V E S

1. Be able to design a training program framework. 2. Understand the uses and applications of a career development program.

The next step in the training process is to create a training framework that will help guide you as you set up a training program. Information on how to use the framework is included in this section.

4.1 Training Program Framework Development When developing your training plan, there are a number of considerations. Training is something that should be planned and developed in advance.

FIGURE 8.6 Training Program Development Model

The considerations for developing a training program are as follows: 1. Needs assessment and learning objectives. This part of the framework development asks you to

consider what kind of training is needed in your organization. Once you have determined the training needed, you can set learning objectives to measure at the end of the training.

2. Consideration of learning styles. Making sure to teach to a variety of learning styles is important to development of training programs.

3. Delivery mode. What is the best way to get your message across? Is web-based training more appropriate, or should mentoring be used? Can vestibule training be used for a portion of the

182 HUMAN RESOURCE MANAGEMENT

organizational assessment

A type of needs assessment that allows us to determine the skills, knowledge, and abilities a company needs to meet its strategic objectives.

occupational (task) assessment

A type of needs assessment that looks at the specific tasks, skills knowledge, and abilities required to do jobs within the organization.

individual assessment

A type of needs assessment that looks at the performance of an individual employee and determines what training should be accomplished for that individual.

training while job shadowing be used for some of the training, too? Most training programs will include a variety of delivery methods.

4. Budget. How much money do you have to spend on this training? 5. Delivery style. Will the training be self-paced or instructor led? What kinds of discussions and

interactivity can be developed in conjunction with this training? 6. Audience. Who will be part of this training? Do you have a mix of roles, such as accounting

people and marketing people? What are the job responsibilities of these individuals, and how can you make the training relevant to their individual jobs?

7. Content. What needs to be taught? How will you sequence the information? 8. Timelines. How long will it take to develop the training? Is there a deadline for training to be

completed? 9. Communication. How will employees know the training is available to them?

10. Measuring effectiveness of training. How will you know if your training worked? What ways will you use to measure this?

Human Resource Recall

Can you think of a time where you received training, but the facilitator did not connect with the audience? Does that ever happen in any of your classes (of course not this one, though)?

Needs Assessment

The first step in developing a training program is to determine what the organization needs in terms of training. There are three levels of training needs assessment: organizational assessment, occupa- tional (task) assessment, and individual assessment:

1. Organizational assessment. In this type of needs assessment, we can determine the skills, knowledge, and abilities a company needs to meet its strategic objectives. This type of assessment considers things such as changing demographics and technological trends. Overall, this type of assessment looks at how the organization as a whole can handle its weaknesses while promoting strengths.

2. Occupational (task) assessment. This type of assessment looks at the specific tasks, skills knowledge, and abilities required to do jobs within the organization.

3. Individual assessment. An individual assessment looks at the performance of an individual employee and determines what training should be accomplished for that individual.

We can apply each of these to our training plan. First, to perform an organizational assessment, we can look at future trends and our overall company’s strategic plan to determine training needs. We can also see how jobs and industries are changing, and knowing this, we can better determine the occupational and individual assessments.

Researching training needs can be done through a variety of ways. One option is to use an online tool such as SurveyMonkey to poll employees on what types of training they would like to see offered.

As you review performance evaluations turned in by your managers, you may see a pattern devel- oping showing that employees are not meeting expectations. As a result, this may provide data as to where your training is lacking.

There are also types of training that will likely be required for a job, such as technical training, safety training, quality training, and professional training. Each of these should be viewed as separate training programs, requiring an individual framework for each type of training. For example, an em- ployee orientation framework will look entirely different from an in-house technical training framework.

Training must be tied to job expectations. Any and all training developed should transfer directly to the skills of that particular employee. Reviewing the HR strategic plan and various job analyses may help you see what kind of training should be developed for specific job titles in your organization.

CHAPTER 8 TRAINING AND DEVELOPMENT 183

learning objective

Something you want your learners to know after the training.

Learning Objectives

After you have determined what type of training should occur, learning objectives for the training should be set. A learning objective is what you want the learner to be able to do, explain, or demon- strate at the end of the training period. Good learning objectives are performance based and clear, and the end result of the learning objective can be observable or measured in some way. Examples of learn- ing objectives might include the following:

1. Be able to explain the company policy on sexual harassment and give examples of sexual harassment.

2. Be able to show the proper way to take a customer’s order. 3. Perform a variety of customer needs analyses using company software. 4. Understand and utilize the new expense-tracking software. 5. Explain the safety procedure in handling chemicals. 6. Be able to explain the types of communication styles and strategies to effectively deal with each

style. 7. Demonstrate ethics when handling customer complaints. 8. Be able to effectively delegate to employees.

Once we have set our learning objectives, we can utilize information on learning styles to then determ- ine the best delivery mode for our training.

Learning Styles

Understanding learning styles is an important component to any training program. For our purposes, we will utilize a widely accepted learning style model. Recent research has shown that classifying people into learning styles may not be the best way to determine a style, and most people have a different style depending on the information being taught. In a study by Pashler et al.,[25] the authors look at aptitude and personality as key traits when learning, as opposed to classifying people into categories of learning styles. Bearing this in mind, we will address a common approach to learning styles next.

An effective trainer tries to develop training to meet the three different learning styles:[26]

1. Visual learner. A visual learner usually has a clear “picture” of an experience. A visual learner often says things such as “I can see what you are saying” or “This looks good.” A visual learner is best reached using graphics, pictures, and figures.

2. Auditory learner. An auditory learner learns by sound. An auditory learner might say, “If I hear you right” or “What do you hear about this situation?” The auditory learner will learn by listening to a lecture or to someone explaining how to do something.

3. Kinesthetic learner. A kinesthetic learner learns by developing feelings toward an experience. These types of learners tend to learn by doing rather than listening or seeing someone else do it. This type of learner will often say things such as “This feels right.”

Most individuals use more than one type of learning style, depending on what kinds of information they are processing. For example, in class you might be a visual learner, but when learning how to change a tire, you might be a kinesthetic learner.

Delivery Mode

Depending on the type of training that needs to be delivered, you will likely choose a different mode to deliver the training. An orientation might lend itself best to vestibule training, while sexual harassment training may be better for web-based training. When choosing a delivery mode, it is important to con- sider the audience and budget constrictions. For example, Oakwood Worldwide, a provider of tempor- ary housing, recently won the Top 125 Training Award for its training and development programs.[27] It offers in-class and online classes for all associates and constantly add to its course catalog. This is a major recruitment as well as retention tool for its employees. In fact, the company credits this program for retaining 25 percent of its workforce for ten years or more. Table 8.1 looks at each of the types of training and suggests appropriate options for delivery modes.

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TABLE 8.1 Types of Training and Delivery

Delivery Method Type of Training Suggested

Technical training

Skills training

Managerial training

On-the-job coaching

Safety training

Technical training

Skills training

Managerial training

Mentor

Safety training

Quality training

Soft skills training

Professional training

Brown bag lunch

Safety training

Technical training

Quality training

Skills training

Soft skills training

Professional training

Team training

Managerial training

Web-based

Safety training

Technical training

Quality training

Skills training

Job shadowing

Safety training

Technical training

Quality training

Skills training

Professional training

Team training

Managerial training

Job swapping

Safety training

Technical training

Quality training

Skills training

Soft skills training

Professional training

Team training

Managerial training

Vestibule training

Safety training

Budget

How much money do you think the training will cost? The type of training performed will depend greatly on the budget. If you decide that web-based training is the right delivery mode, but you don’t have the budget to pay the user fee for the platform, this wouldn’t be the best option. Besides the actual cost of training, another cost consideration is people’s time. If employees are in training for two hours, what is the cost to the organization while they are not able to perform their job? A spreadsheet should

CHAPTER 8 TRAINING AND DEVELOPMENT 185

be developed that lists the actual cost for materials, snacks, and other direct costs, but also the indirect costs, such as people’s time.

Delivery Style

Taking into consideration the delivery method, what is the best style to deliver this training? It’s also important to keep in mind that most people don’t learn through “death by PowerPoint”; they learn in a variety of ways, such as auditory, kinesthetic, or visual. Considering this, what kinds of ice breakers, breakout discussions, and activities can you incorporate to make the training as interactive as possible? Role plays and other games can make the training fun for employees. Many trainers implement online videos, podcasts, and other interactive media in their training sessions. This ensures different learning styles are met and also makes the training more interesting.

Audience

Considering your audience is an important aspect to training. How long have they been with the or- ganization, or are they new employees? What departments do they work in? Knowing the answers to these questions can help you develop a relevant delivery style that makes for better training. For ex- ample, if you know that all the people attending the training are from the accounting department, ex- amples you provide in the training can be focused on this type of job. If you have a mixed group, ex- amples and discussions can touch on a variety of disciplines.

Content Development

The content you want to deliver is perhaps one of the most important parts in training and one of the most time-consuming to develop. Development of learning objectives or those things you want your learners to know after the training makes for a more focused training. Think of learning objectives as goals—what should someone know after completing this training? Here are some sample learning objectives:

1. Be able to define and explain the handling of hazardous materials in the workplace. 2. Be able to utilize the team decision process model. 3. Understand the definition of sexual harassment and be able to recognize sexual harassment in the

workplace. 4. Understand and be able to explain the company policies and structure.

After you have developed the objectives and goals, you can begin to develop the content of the training. Consideration of the learning methods you will use, such as discussion and role playing, will be out- lined in your content area.

Development of content usually requires a development of learning objectives and then a brief outline of the major topics you wish to cover. With that outline, you can “fill in” the major topics with information. Based on this information, you can develop modules or PowerPoint slides, activities, dis- cussion questions, and other learning techniques.

Timelines

For some types of training, time lines may be required to ensure the training has been done. This is of- ten the case for safety training; usually the training should be done before the employee starts. In other words, in what time frame should an employee complete the training?

Another consideration regarding time lines is how much time you think you need to give the training. Perhaps one hour will be enough, but sometimes, training may take a day or even a week. After you have developed your training content, you will likely have a good idea as to how long it will take to deliver it. Consider the fact that most people do not have a lot of time for training and keep the training time realistic and concise.

From a long-term approach, it may not be cost effective to offer an orientation each time someone new is hired. One consideration might be to offer orientation training once per month so that all em- ployees hired within that month are trained at the same time.

Development of a dependable schedule for training might be ideal, as in the following example: 1. Orientation is offered on the first Thursday of every month. 2. The second and third Tuesday will consist of vestibule training on management skills and

communication. 3. Twice yearly, in August and March, safety and sexual harassment training will be given to meet

the legal company requirements.

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Developing a dependable training schedule allows for better communication to your staff, results in fewer communication issues surrounding training, and allows all employees to plan ahead to attend training.

Communication

Once you have developed your training, your next consideration is how you will communicate the available training to employees. In a situation such as an orientation, you will need to communicate to managers, staff, and anyone involved in the training the timing and confirm that it fits within their schedule. If it is an informal training, such as a brown bag lunch on 401(k) plans, this might involve de- termining the days and times that most people are in the office and might be able to participate. Be- cause employees use Mondays and Fridays, respectively, to catch up and finish up work for the week, these days tend to be the worst for training.

Consider utilizing your company’s intranet, e-mail, and even old-fashioned posters to communic- ate the training. Many companies have Listservs that can relay the message to only certain groups, if need be.

Human Resource Recall

What can happen if training is not communicated to employees appropriately?

Measuring Effectiveness

After we have completed the training, we want to make sure our training objectives were met. One model to measure effectiveness of training is the Kirkpatrick model,[28] developed in the 1950s. His model has four levels:

1. Reaction: How did the participants react to the training program? 2. Learning: To what extent did participants improve knowledge and skills? 3. Behavior: Did behavior change as a result of the training? 4. Results: What benefits to the organization resulted from the training?

Each of Kirkpatrick’s levels can be assessed using a variety of methods. We will discuss those next.

CHAPTER 8 TRAINING AND DEVELOPMENT 187

FIGURE 8.7 Kirkpatrick’s Four Levels of Training Evaluation

Review the performance of the employees who received the training, and if possible review the per- formance of those who did not receive the training. For example, in your orientation training, if one of the learning objectives was to be able to request time off using the company intranet, and several em- ployees who attended the training come back and ask for clarification on how to perform this task, it may mean the training didn’t work as well as you might have thought. In this case, it is important to go back and review the learning objectives and content of your training to ensure it can be more effective in the future.

Many trainers also ask people to take informal, anonymous surveys after the training to gauge the training. These types of surveys can be developed quickly and easily through websites such as Sur- veyMonkey. Another option is to require a quiz at the end of the training to see how well the employ- ees understand what you were trying to teach them. The quiz should be developed based on the learn- ing objective you set for the training. For example, if a learning objective was to be able to follow OSHA standards, then a quiz might be developed specifically related to those standards. There are a number of online tools, some free, to develop quizzes and send them to people attending your training. For example, Wondershare QuizCreator[29] offers a free trial and enables the manager to track who took the quiz and how well they did. Once developed by the trainer, the quiz can be e-mailed to each participant and the manager can see how each trainee did on the final quiz. After you see how parti- cipants do on the quiz, you can modify the training for next time to highlight areas where participants needed improvement.

It can be easy to forget about this step in the training process because usually we are so involved with the next task: we forget to ask questions about how something went and then take steps to im- prove it.

One way to improve effectiveness of a training program is to offer rewards when employees meet training goals. For example, if budget allows, a person might receive a pay increase or other reward for each level of training completed.

188 HUMAN RESOURCE MANAGEMENT

FIGURE 8.8

Once the training framework has been developed, the training content can be developed. The training plan serves as a starting point for training development.

CHAPTER 8 TRAINING AND DEVELOPMENT 189

career development program

A process developed to help people manage their career, learn new things, and take steps to improve personally and professionally.

4.2 Career Development Programs and Succession Planning Another important aspect to training is career development programs. A career development pro- gram is a process developed to help people manage their career, learn new things, and take steps to im- prove personally and professionally. Think of it as a training program of sorts, but for individuals. So- metimes career development programs are called professional development plans.

FIGURE 8.9 Sample Career Development Plan Developed by an Employee and Commented on by Her Manager

As you can see, the employee developed goals and made suggestions on the types of training that could help her meet her goals. Based on this data, the manager suggested in-house training and external training for her to reach her goals within the organization.

Career development programs are necessary in today’s organizations for a variety of reasons. First, with a maturing baby-boom population, newer employees must be trained to take those jobs once baby boomers retire. Second, if an employee knows a particular path to career development is in place, this

190 HUMAN RESOURCE MANAGEMENT

job rotation

Involves a systematic movement of employees from job to job within an organization.

can increase motivation. A career development plan usually includes a list of short- and long-term goals that employees have pertaining to their current and future jobs and a planned sequence of formal and informal training and experiences needed to help them reach the goals. As this chapter has dis- cussed, the organization can and should be instrumental in defining what types of training, both in- house and external, can be used to help develop employees.

To help develop this type of program, managers can consider a few components:[30]

1. Talk to employees. Although this may seem obvious, it doesn’t always happen. Talking with employees about their goals and what they hope to achieve can be a good first step in developing a formal career development program.

2. Create specific requirements for career development. Allow employees to see that if they do A, B, and C, they will be eligible for promotion. For example, to become a supervisor, maybe three years of experience, management training, and communication training are required. Perhaps an employee might be required to prove themselves in certain areas, such as “maintain and exceed sales quota for eight quarters” to be a sales manager. In other words, in career development there should be a clear process for the employees to develop themselves within the organization.

3. Use cross-training and job rotation. Cross-training is a method by which employees can gain management experience, even if for short periods of time. For example, when a manager is out of the office, putting an employee “in charge” can help the employee learn skills and abilities needed to perform that function appropriately. Through the use of job rotation, which involves a systematic movement of employees from job to job within an organization, employees can gain a variety of experiences to prepare them for upward movement in the organization.

4. Utilize mentors. Mentorship can be a great way for employees to understand what it takes to develop one’s career to the next level. A formal mentorship program in place with willing mentees can add value to your career development program.

FIGURE 8.10 Career Development Sample Process to Become an Accounts Payable Manager

There are many tools on the web, including templates to help employees develop their own career de- velopment plans. Many organizations, in fact, ask employees to develop their own plans and use those

CHAPTER 8 TRAINING AND DEVELOPMENT 191

as a starting point for understanding long-term career goals. Then hopefully the organization can provide them with the opportunities to meet these career goals. In the late 1980s, many employees felt that career opportunities at their current organizations dwindled after seeing the downsizing that oc- curred. It gave employees the feeling that companies were not going to help develop them, unless they took the initiative to do so themselves. Unfortunately, this attitude means that workers will not wait for career opportunities within the company, unless a clear plan and guide is put into place by the com- pany.[31] Here is an example of a process that can be used to put a career development program in place:[32]

1. Meet individually with employees to identify their long-term career interests (this may be done by human resources or the direct manager).

2. Identify resources within the organization that can help employees achieve their goals. Create new opportunities for training if you see a gap in needs versus what is currently offered.

3. Prepare a plan for each employee, or ask them to prepare the plan. 4. Meet with the employee to discuss the plan. 5. During performance evaluations, revisit the plan and make changes as necessary.

Identifying and developing a planning process not only helps the employee but also can assist the man- agers in supporting employees in gaining new skills, adding value, and motivating employees.

FIGURE 8.11 Career Development Planning Process

192 HUMAN RESOURCE MANAGEMENT

K E Y T A K E A W A Y S

< There are a number of key considerations in developing a training program. Training should not be handled casually but instead developed specifically to meet the needs of the organization. This can be done by a needs assessment consisting of three levels: organizational, occupational, and individual assessments.

< The first consideration is the delivery mode; depending on the type of training and other factors, some modes might be better than others.

< Budget is a consideration in developing training. The cost of materials, but also the cost of time, should be considered.

< The delivery style must take into account people’s individual learning styles. The amount of lecture, discussion, role plays, and activities are considered part of delivery style.

< The audience for the training is an important aspect when developing training. This can allow the training to be better developed to meet the needs and the skills of a particular group of people.

< The content obviously is an important consideration. Learning objectives and goals for the training should be developed before content is developed.

< After content is developed, understanding the time constraints is an important aspect. Will the training take one hour or a day to deliver? What is the time line consideration in terms of when people should take the training?

< Letting people know when and where the training will take place is part of communication.

< The final aspect of developing a training framework is to consider how it will be measured. At the end, how will you know if the trainees learned what they needed to learn?

< A career development process can help retain good employees. It involves creating a specific program in which employee goals are identified and new training and opportunities are identified and created to help the employee in the career development process.

E X E R C I S E S

1. Develop a rough draft of a training framework using Figure 8.8 for a job you find on Monster.com.

2. Write three learning objectives you think would be necessary when developing orientation training for a receptionist in an advertising firm.

3. Why is a career development plan important to develop personally, even if your company doesn’t have a formal plan in place? List at least three reasons and describe.

5. CASES AND PROBLEMS

Chapter Summary

< Employee training and development is a necessity in today’s work environment. Training and development can lead to lower turnover and increased motivation.

< There are four basic steps to employee training: employee orientation, in-house training, mentoring, and external training.

< Different types of training can be delivered, each falling into the steps of employee training. These include technical or technology training, quality training, skills training, soft skills training, professional training, team training, managerial training, and safety training.

< Within the types of training, we need to determine which method is best for the actual delivery of training. Options include on-the-job training, mentor training, brown bag lunches, web-based training, job shadowing, job swapping, and vestibule training.

< Development of a training development framework is the first step in solidifying the training.

< Considerations and steps to developing the training framework include determining the training needs, delivery modes, budget, delivery style, audience, content, time lines, communication of the training, and measurement of the training.

< Career development programs can be an essential piece to the training puzzle. A comprehensive program or plan, either developed by employees or administered by HR, can help with motivation and fill the gap when people in the organization leave or retire. It can also be used as a motivational tool.

CHAPTER 8 TRAINING AND DEVELOPMENT 193

Summary The author provides a video summary of the chapter.

Chapter Case

New on the Job

JoAnn Michaels just started her job as human resources manager at In the Dog House, a retail chain specializ- ing in dog apparel and accessories. She is a good friend of yours you met in college.

The organization has 35 stores with 250 employees in Washington, Idaho, and Oregon. As the chain has grown, the training programs have been conducted somewhat piecemeal. Upon visiting some of the stores in a three-week tour, JoAnn has realized that all the stores seem to have different ways of training their in-store employees.

When she digs further, she realizes even the corporate offices, which employ seventy-five people, have no formal training program. In the past, they have done informal and optional brown bag lunch training to keep employees up to date. As a result, JoAnn develops a survey using SurveyMonkey and sends it to all seventy- five corporate employees. She created a rating system, with 1 meaning strongly disagree and 5 meaning strongly agree. Employees were not required to answer all questions, hence the variation in the number of re- sponses column. After this task, JoAnn creates a slightly different survey and sends it to all store managers, ask- ing them to encourage their retail employees to take the survey. The results are shown here.

In the Dog House Corporate Employee Survey Results

Question Number of Responses

Average Rating

I am paid fairly. 73 3.9

I feel my group works well as a team. 69 2.63

I appreciate the amount of soft skills training offered at In the Dog House. 74 2.1

I can see myself growing professionally here. 69 1.95

I feel I am paid fairly. 74 3.8

I have all the tools and equipment I need to do my job. 67 4.2

I feel confident if there were an emergency at the office, I would know what to do and could help others.

73 2.67

I think my direct supervisor is an excellent manager. 55 2.41

The orientation training I received was helpful in understanding the expectations of the job.

75 3.1

I would take training related to my job knowing there would be a reward offered for doing so.

71 4.24

View the video online at: http://app.wistia.com/embed/medias/17221679b8

194 HUMAN RESOURCE MANAGEMENT

In the Dog House Retail Employee Survey Results

Question Number of Responses

Average Rating

I am content with the benefits I am receiving. 143 1.2

I feel my store works well as a team. 190 4.1

I appreciate the amount of product training and information offered at In the Dog House.

182 2.34

I can see myself growing professionally here. 158 1.99

I feel I am paid fairly. 182 3.2

My supervisor works with my schedule, so I work at times that are convenient for me.

172 3.67

I feel confident if I had to evacuate the store, I would know what to do and could help customers.

179 2.88

I think my store manager is a great manager. 139 3.34

The orientation training I received was helpful in understanding the expectations of the job.

183 4.3

I am interested in developing my career at In the Dog House. 174 1.69

Based on the information JoAnn received from her survey, she decided some changes need to be made. JoAnn asks you to meet for coffee and take a look at the results. After you review them, JoAnn asks you the fol- lowing questions. How would you respond to each?

1. “Obviously, I need to start working on some training programs. Which topics do you think I should start with?”

2. “How do I go about developing a training program that will be really useful and make people excited? What are the steps I need to take?”

3. “How should I communicate the training program to the corporate and retail employees? Should the new training I develop be communicated in the same way?”

4. “Do you think that we should look at changing pay and benefits? Why or why not?”

5. “Can you please help me draft a training program framework for what we have discussed? Do you think I should design one for both the corporate offices and one for the retail stores?” (Hint: Look at Figure 8.8 for guidelines.)

Team Activity

1. In teams of three to four, outline a two-hour training program for managers to better understand motivation for their employees. Motivation is discussed in Chapter 7. Use the training development model discussed in this chapter. Your training should address learning objectives, delivery modes, budget, delivery style, time line, communication, and measurement. Prepare a five-minute presentation to present in class.

2. Using the same plan above, plan and deliver the content to the rest of the class.

CHAPTER 8 TRAINING AND DEVELOPMENT 195

10.

11.

12.

13.

14.

15.

16.

17.

18. 19.

20.

21.

22.

23. 24.

25.

26.

27.

28.

29.

30.

31.

32.

ENDNOTES

“2010 Top 25 Winners,” Training Magazine, accessed July 25, 2010, http://www.trainingmag.com/article/2010-top-125-winners.

“Video Community for the Enterprise,” Social Learning eXchange, accessed July 25, 2010, http://www.slideshare.net/sociallearningexchange/ social-learning-exchange-slx?from=share_email.

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196 HUMAN RESOURCE MANAGEMENT

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