Running Head: EMPOYEE TRAINING 1
Employee Training
BUSI 620 B05
June 30, 2019
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Employee Training
The following paper is the result of an interview with the vice president of operations for
a small startup elevator company. The managerial economics topic that was chosen is employee
training. A description of the company that was selected follows, along with five questions
directly related to employee training, and this authors comments regarding the interview. The
purpose of this paper is to gain firsthand knowledge of the managerial economics topic of
employee training from someone in the field who is directly responsible for the training of the
employees for the elevator company.
Company Description
The company that was chosen for this paper is Above All Elevator, a small startup
elevator company that has been in business for four years. Above All elevator currently employs
approximately 20-25 elevator technicians and 10 office, support, and sales staff. The company
has offices in Myrtle Beach, SC, Charleston, SC, Wilmington, NC, Charlotte, NC, and Raleigh,
NC. They focus on maintenance, Modernization and repair of both commercial and residential
elevators. Above All Elevator is a non-union company in a primarily unionized industry. In
order to be an effective force in the elevator market, they must be competitive in the training of
technicians to gain and grow their market share of the elevator service industry. The following
questions and answers were the result of an interview with Tyler Nox who is the vice president
of operations for Above All Elevator, his answers will be summarized below.
Interview Questions
The importance of employee training.
The first question that was asked about employee training was, why is it important to
train your employees? There are several answers that were elaborated on and will be
summarized in order of importance to Mr. Nox. The most important reason for training in the
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elevator industry is safety. This is not a job that someone can do if they have not been properly
trained in safety. It is easy to become injured or killed in this line of work, so we place safety
training at the highest priority. There are procedures in place for every aspect of elevator work
to keep the technicians and anyone who rides elevators safe at all times. The elevator itself,
regardless of where it is has multiple safety features that must be maintained and observed. The
technician must be trained in these safety procedures to avoid injury or loss of life. There have
been several instances of injury and death related to technicians in the elevator industry. Many
of these cases involved the abuse or neglecting of safety procedures. Whether it is following the
procedure for shutting down a car prior to commencing work or wearing the proper personal
protective gear in order to perform the job, safety must come first. Our emphasis on safety
training re-assures the employees who perform this dangerous work that we care about them and
their wellbeing.
Efficiency is another reason that training is vitally important. The goal of efficiency in
the elevator industry is get the job done correctly and keep the elevator running. The more that
the technicians are trained, the more efficient the company will be. If the technicians are not
properly trained in the maintenance, modernization and repair of elevators, additional technicians
will be required to go and perform a job that should have been completed by the first technician.
A properly trained technician is an efficient asset to the company.
To sum up, training is a critical part of the elevator industry, most of our competitors are
union trained. Unions spend vast amounts of money in the training of union workers. In order to
maintain and grow customers, Above All elevator must continue to emphasize the training and
education of their employees. The effective training provides information to the employees and
gives them a snapshot of their responsibilities and the knowledge and skill to perform their jobs
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safely[ CITATION Tow14 \l 1033 ]. This should be important to any elevator company
regardless of the cost.
The cost of employee training.
What is the cost of employee training in the elevator industry? The cost of elevator
training in the elevator industry depends on the company. At Above All Elevator there is a safety
stand down meeting on Monday morning prior to starting work each week. In this meeting
safety issues are discussed, and weekly training lessons are reviewed by all technicians. This is a
time when no work is being completed and is an expense to the company that does not return a
profit. This is however vitally important to the safety of the employees. There is time to confer
about new procedures, review current procedures, and discuss recent mishaps or close calls. This
time is a learning process that will help to ensure the day to day safety of the team.
In addition to safety training, each technician employed by Above All Elevator is enrolled
in a four-year program titled Certified elevator Technician. This course is provided by the
company at the approximate cost of $4,000.00 per technician. This cost is an investment by the
company to the individual training of the technician. Upon completion of the course, the
technician is certified as an elevator mechanic, and can keep their certification if they leave the
company. So, there is a cost to employee training, but it is worth it for the company in the long
run to have certified technicians who can perform their jobs efficiently and safely.
There are several online courses and continuing education available as well to companies
today in order to maintain a level of education and safe work environments. These online
courses offer companies a lower cost alternative to educate large numbers of
employees[ CITATION Ong16 \l 1033 ]. In the opinion of Mr. Nox, the cost of employee
training is well worth the expense in the long run and the reasons are justifiable.
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The reasons for employee training.
What are the reasons for providing employee training? Several reasons for providing
employee training have already been discussed. Keeping our employees and customers safe
always is the most important reason for employee training. If employees are safe, they perform
their jobs more efficiently. The training of employees to efficiently do their job reduces the
time for supervisor involvement in performing medial tasks and operations. This process leads
to greater overall customer satisfaction, a larger customer base, and increased company profits.
In general, companies that have an extensive education and training program have a more
loyal and efficient work force. This training should be considered a human capitol investment.
Employees who are trained properly, safely, and efficiently will be transferred to the equipment
and services they are working on which leads to a reduction in unnecessary costs or
loss[ CITATION Ali18 \l 1033 ]. These processes will have a positive affect for the company
and can be documented as results for the training of the employees.
The results of employee training.
What are some of the results you can see that are a direct outcome of employee training?
The biggest result that is apparent at Above All Elevator is the lack of on the job injuries that we
report. Due to the safety training and ongoing safety meetings we have seen a decline of injuries
reported on the job. As part of the safety training, each employee understands that they are
responsible for their safety as well as the safety of those employees they are working with. This
provides an atmosphere of accountability to keep each other safe. Even if a junior technician
sees something that a supervisor is doing and deems it un-safe, they have the right in the
company to call out the safety concern to that supervisor to ensure everyone is safe. This goes
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for personal protective gear that must be worn in certain places and times, as well as procedures
for safely entering an elevator pit or accessing the elevator shaft.
Regarding the educational training that Above All Elevator emphasizes, the results
manifest themselves in a plethora of situations. Initially Above All Elevator enlists employees
that are not trained in the elevator industry. Above All Elevator seeks out potential employees
who have backgrounds in the military, electrical fields, mechanical fields and maintenance
fields. This gives them the opportunity to train them in the way that they deem proper and safe as
it pertains to procedures and safety. There are not many technicians that have been trained by
others who could have bad habits or less than proper safety standards. The result is that there are
fewer calls for repair that need a supervisor follow-up or additional time on the job. The
maintenance aspect of the operation is becoming more efficient and requires less direct
supervision. The employees know that Above All Elevator is investing in their future and that
brings with it a loyalty and sense of teamwork that helps hold the company together. All this
training does have a positive direct affect on the overall performance of the company.
How does employee training affect the company overall?
How does the aspect of training affect the company overall? The Company benefits
greatly from the employee training program and safety program. There are very few injuries on
the job site. Injuries on the job can be very costly to a company and in the case of a small
independent start up, could have devastating irreversible effects. Keeping our employees safe
through continual education helps us to avoid unnecessary cost due to ignorance or lack of
understanding.
The continual training of employees, because it is a daily operation, keeps the company
operating more efficiently every day. The senior technicians train the junior technicians who
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then become senior technicians training more juniors. This continual cycle of training keeps the
company efficient in the repairs, maintenance and modernization categories. The junior
technicians who helped modernize elevators in their first two years are now lead technicians in
their own modernizations.
As this training process continues, the company grows its loyal customer base, and
increases its customer base due to excellent work and customer satisfaction. Overall with
growing customer base and satisfaction, the overall profits of the company increase. The loyalty
and comradery of the employees is based in a positive caring work environment that creates
employee loyalty and longevity.
Comments
As an outsider looking into the managerial economics world of employee training in the
elevator industry, this writer would have to admit that the emphasis that Above All Elevator
places on employee training is quite impressive. It is important that all companies emphasize the
training of their employees. Understanding a safe workplace can create employee loyalty and
job longevity which will benefit the company. Ensuring that employees understand what is
expected of them and giving the necessary skills to perform their jobs is vital to the survival of
small companies like Above All Elevator as well as large companies in the world today. The
bottom line is that there should be no question for reasons of time or cost that should deter a
company from properly investing and training their employees. This is an aspect of managerial
economics that if executed properly will increase performance and the overall customer
satisfaction and profitability of the company.
Conclusion
In the overall topic of managerial economics, employee training is just a small aspect of
the greater subject. It however it should be vitally important to the infrastructure, mission, and
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goals of any company that wishes to be successful in todays marketplace. The training of
employees is a cost to the company, but it will reap its rewards in the long run. Proverbs 8:32-36
“And now, O sons, listen to me: blessed are those who keep my ways. Hear instruction and be
wise, and do not neglect it. Blessed is the one who listens to me, watching daily at my gates,
waiting beside my doors. For whoever finds me finds life and obtains favor from the Lord, but he
who fails to find me injures himself; all who hate me love death.” This scripture is meant for
spiritual growth but can also be used for instructing, educating or training others. Listen to
instruction and be wise, safe and efficient.
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References
Ali, R., & Blair, E. (2018). Safety Training Revisited: Effective design & delivery.
Professional Safety, 57-60. Retrieved from https://search-proquest-
com.ezproxy.liberty.edu/docview/2050598002?pq-origsite=summon
Ong, D., & Jambulingam, M. (2016). Reducing employee learning and development costs:
The use of massive open online courses (MOOC). Development and Learning in
Organizations, 18-21. Retrieved from https://search-proquest-
com.ezproxy.liberty.edu/docview/1823088546?pq-origsite=summon
Towler, A., Watson, A., & Surface, E. A. (2014). Signaling the importance of training. Journal
of Managerial Psychology, 829-849. Retrieved from https://search-proquest-
com.ezproxy.liberty.edu/docview/2138083153?pq-origsite=summon
