Exam code:1BS0
How businesses train and develop employees
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Businesses need to make sure that new and existing staff are trained and developed appropriately
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Training is the teaching of new skills
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Development is the improvement of existing skills
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A well-trained workforce is important for several reasons
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Well-trained staff are likely to be more productive
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Staff may feel valued if a business invests in training and development
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Staff are more likely to be flexible and resilient in the face of change
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Formal and informal training
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Businesses have a range of formal and informal training options for employees
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The type of training employees undertake will depend upon the finance and timescale available as well as the specific needs of the business and employee
Formal and informal training
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Type of Training |
Explanation |
Benefits |
Drawbacks |
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Formal |
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Informal |
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Self learning
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Improvements in technology and the increasing availability of vocational courses has made self learning an attractive option for businesses
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It involves workers studying or practising skills without the presence of a teacher of trainer
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It can take place outside of normal working hours and if online it can be undertaken anywhere
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Workers can learn at their own pace
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Feedback is unlikely to be immediate and trainees cannot easily ask questions
Induction training
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Induction training is usually delivered as soon as possible after new workers join a business and can involve several elements
Elements of induction training

Ongoing training
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Ongoing training is provided to workers throughout their career and is a key way to continuously improve productivity as they understand how to fulfil their job roles effectively
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It ensures that workers stay up to date with working practises
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It allows skills to be improved
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It reminds employees of business priorities
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Target setting and performance reviews
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Training and development is usually linked to targets for employees to aim for and is a key part of the performance management process
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Targets may be negotiated between an employee and their supervisor who ensures that training targets support business objectives
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Progress towards targets and further training needs are discussed during performance review meetings which are usually held annually
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The successfully completion of training can support a worker’s application for promotion or increased pay
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Why businesses train and develop employees
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Businesses invest time and money into training and developing workers for several sound business reasons
Reasons for training and development

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As technology develops, ongoing training is essential to ensure workers are able to use it effectively
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Specialist staff may attend technology-specific external courses some of which may be provided by the supplier of the technology
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Employees may be encouraged to keep up to date by following technology news and blogs, attending conferences or joining industry groups and forums
Training, motivation and retention
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Businesses use training and development to motivate their employees and improve retention of workers
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The staff retention rate is calculated using the formula and is expressed as a percentage
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A high percentage indicates that a business is successful in retaining its workers
Worked Example
B&G Fabrics has a total workforce of 1,020 employees, of whom 68 are expected to leave in 2024. Calculate B&G’s expected staff retention rate for 2024.
(2)
Step 1 : Calculate the number of employees remaining during the period
<img alt=”equals space 1 comma 020 space minus space 68 space equals space 952″ data-mathml=”<math style=”font-family:Arial” ><semantics><mstyle mathsize=”16px”><mo>=</mo><mo> </mo><mn>1</mn><mo>,</mo><mn>020</mn><mo> </mo><mo>-</mo><mo> </mo><mn>68</mn><mo> </mo><mspace linebreak=”newline”/><mspace linebreak=”newline”/><mo>=</mo><mo> </mo><mn>952</mn></mstyle><
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