The training and development of employees is a critical component of success for organizations — especially if you believe that a stronger team makes a competitive difference.

However, despite its importance, when times are tough training and development budgets are among the first to be cut. Often the reason behind this apparent contradiction is the lack of a clear connection between such training and results.

Continuous Learning and Competitive Advantage

Intangible assets including human capital, customer capital, social capital and intellectual capital help companies gain competitive advantage. Recognizing that formal training, informal learning and knowledge management are important for the development of intangible assets, many companies now consider training one part of a larger emphasis on continuous learning. 

Continuous training/learning is critical in assisting organizations to achieve their operational, business and performance objectives, hence adequate resources and funding should be committed to enabling a strategic and planned approach to training.

Continuous learning enables employees to understand the entire work system, acquire new skills and to apply them on the job and share what they have learned with other employees.

Key features of Continuous Learning

Training

A planned effort to facilitate the learning of job-related knowledge, skills and behavior by employees. No training/lack off planned or active efforts to facilitate training, will overtime lead to a decline in job satisfaction amongst staff and contribute to a high employee turnover. Loss of experienced employees will result in a less productive workforce due to lack of job-related knowledge. Lack of training will also potentially result in lower customer satisfaction scores as result of mediocre product knowledge.

Formal Training

Training and development programs/courses that are developed and organized by the company. Most underperforming organizations’ regard formal training as expensive and unnecessary, given the associated costs of delivery and employees requiring time away from work to attend training. 

A study by the Harvard Business Review found that most senior managers were of the view that formal training is costly and can take employees off the job for short periods of time. Employers are understandably reluctant to make big investments in workers who might not stay long, but this creates a vicious circle.

Companies won’t train workers because they might leave, and workers leave because they don’t get training. By offering employees a more balanced menu of development opportunities, employers might boost their inclination to stick around (Hamori, Cao & Koyuncu 2012).

Informal Learning

Learning that is learner initiated, involves action and doing, is motivated by an intent to develop and does not occur in a formal learning setting. Informal learning occurs without an instructor and its breadth, depth, and timing are controlled by the employee. As the outcome is often unquantifiable, it is difficult for managers to measure and evaluate outcomes from informal learning for purposes of performance, productivity and reviews.

Explicit Knowledge

Knowledge that is well documented and essentially transferred to other persons e.g. processes, checklists and operational guidelines that tend to be well documented and available both electronically and hardcopy (manuals), hence explicit knowledge is easily transferable and accessible.

Tacit Knowledge

Knowledge based on personal experience that is difficult to codify and is best acquired through informal learning. Tacit knowledge in most environments is best acquired through interaction with experienced peers and experts. However for those organizations with high employee turnover, new employees will generally have very limited access to experienced peers who would have the level of experience required to act as mentors and coaches. 

Knowledge Management

Process of enhancing company performance by using tools, processes, systems, and cultures to improve the creation, sharing and use of knowledge. Most successful organizations have a platform for employees to share their knowledge about products, solutions, projects and professional interest e.g. intranet forums where employees share product knowledge, exchange ideas and interact with senior management, allowing their employees to be more effective and productive, to keep up with trends, technological developments, access to real-time information, and the ability to contribute to business development and innovation, leading to higher job satisfaction and personal development.

Conclusion

It is important for all aspects of continuous learning, including training, knowledge management, and informal learning to contribute to and support the business strategy. Continuous learning needs to address performance issues that lead to improved business results.

To do so requires that the emphasis on continuous learning aligns with the business strategy, has visible support from senior managers and involves leaders as instructors and teachers. Creates a culture or work environment that encourages learning, provides a wide range of learning opportunities including training, informal learning, knowledge management, and employee development. Uses traditional methods and innovative technologies to design and deliver learning, and measures the effectiveness and overall business impact of learning (Noe et al. 2015).

Author: Nigel Chetty MBA - WWW.NIGELCHETTY.COM