Difference Between Employee Training and Management Development

Companies are very aware of the return on their investments—and for good reason. Tracking ROI helps determine what initiatives are moving the needle and creating a profit. But before receiving a positive return on employee training and development, companies must first invest.

Employers are generally hesitant to invest in employees because they are afraid of turnover. As a result, companies tend to simply train for the job and avoid the additional cost of development.

But what if employees stayed?

 

What if investing in your employees’ potential resulted in overall company growth?

 

What if you started developing employees to become impactful leaders who will manage the company’s future?

The companies of tomorrow are taking action by embracing a culture of learning and prioritize employee development to prevent turnover. “When employees are consistently learning, they are happy,” says David Clark, senior vice president and chief learning officer at American Express.

 

Employee Training vs. Management Development

Employee training and development go hand in hand. The terms are usually tied together in corporate conversation, but they have very separate definitions. Both training and development are completely necessary to invest in, but knowing their differences is important.

Training
Development
Short term (business benefit) Long term (mutual benefit)
Job-related tasks Open-ended goals
Fulfills present needs Future-focused
Company growth Personal growth
Enhances hard skills (job-specific) Enhances soft skills

The difference between training and development has to do with the purpose and end-goal of each:

Employee training impacts a company’s immediate needs by teaching new hires how to do job-related tasks. The more technical work that can be carried out, the more bandwidth a company has to sell their services.

Employee development serves as a long term growth tool to enhance employees’ skillset, thereby creating a more valuable workforce. Well developed employees who are trained to lead will support the company culture and impact future goals.

 

Employee Training

Employee training is the process of educating and equipping new employees with technical knowledge and skills to perform job duties. Job training is a necessary component of successful onboarding to produce a high-performing workforce. But before employees can do their jobs well, they need to be empowered with the right tools of the trade.

Training is content-centric: company policies, procedures, product or service knowledge, unique value proposition, CRM software, etc. The content learned in training supports employees as they figure out the rhythm of their new jobs and workplace norms.

The modalities for training have drastically evolved with the ever-changing digital workplace. Today, eLearning is a popular and increasingly effective way to train. Modern learners are on hyperdrive and prefer to learn on-the-go, which provides them with more mobility. Companies are shifting from physical to virtual classrooms for employee training, but that’s a conversation we’ve already had…

So if employee training related to the technical aspects of a job, what is employee development?

 

Employee Development

Employee development is a deciding factor for prospective hires. A comprehensive new employee onboarding process includes career development and goal-setting because new employees expect it. 87% of millennialsreported they value and care about receiving professional development and career growth from employers.

Once a new employee joins the team, keeping them engaged (and retained) requires a whole new strategy. A healthy employee development program promotes employee retention and job satisfaction. Harvard Business Review explains that losing top talent is more costly than investing in employee development in the long run:

Dissatisfaction with some employee development efforts appears to fuel many early exits…Workers reported that companies generally satisfy their needs for on-the-job development and that they value these opportunities, which include high-visibility positions and significant increases in responsibility. But they’re not getting much in the way of formal development, such as training, mentoring, and coaching—things they also value highly.

In comparison to training, development is people-centric, focusing more on the learner than the content being learned. Development refines employees’ soft skills, encourages personal growth, plans out career goals, and more. Ongoing employee development supports company goals because it enhances team member performance.

 

Benefits of Employee Training and Development Programs

Everyone has heard of “mobile-first” at this point, but now it’s time to think “people-first.” Companies are profitable because of the people behind the screens. If employee training and development are not priorities, don’t expect the workforce to improve.

Investing in employees, professionally and personally, will ultimately benefit the bottom line. In the same way software requires updates, employees need—and want—to advance in their careers. Employers need to start thinking about the ROI of both training and management development (starting Day 1).

Remember, the leaders of tomorrow are developed today.

 

Employee Retention

Companies need to focus on programs that will retain employees and make them assets instead of liabilities. If employees are unhappy, it’s probably safe to assume customer satisfaction is not at an all-time high. 94% of employees say they would stay with a company longer if it invested in their career development.

Employee learning and development in the workplace keeps employees active and committed to their jobs. Technical skills give employees confidence in their work, while personal development serves as a catalyst for growth.

 

Higher Employee Engagement

Highly engaged employees find value in their jobs and feel valued themselves, resulting in a mutual benefit. According to Gallup, employee engagement drives company growth. Employees who are more engaged at work double their odds of success compared to those who are disengaged.

When employees succeed, the business succeeds. Different methods of training can be used to increase employee engagement. Learn more about how a learning management system like Spoke® LMS can fast-track employee engagement.

 

Well Developed Leaders

With the increase of tech-savvy hires, the soft-skills gap is becoming more noticeable:

Soft skills—which are needed to effectively communicate, problem solve, collaborate and organize—are becoming more important for success as the workplace evolves socially and technologically.SHRM

Employee development is a way to refine high-demand soft-skills to form influential leaders. Internal employee development also helps foster a consistent company culture. A healthy company culture provides motivation and camaraderie for employees.

Develop managers and leaders who will inspire, support the company culture, drive growth, and engage others in the process.

 

Employee Training, Management, and Leadership Programs

Are you ready to invest in the future of your company? The potential of your employees is waiting to be developed. At Unboxed Training & Technology, we provide award-winning industry expertise to help you train, develop, sell, and succeed. Contact us today to learn more about employee training or custom management and leadership training programs.

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Why Your Best Individual Contributor Isn’t Ready to be a People Manager

If you’re a leader in your organization, chances are you’re able to pinpoint your top performer. It’s only natural to want to reward that team member with a promotion and give them a platform to make more waves within your organization. But have you stopped to consider that, according to ATD, 60% of people managers underperform or fail within their first two years?

Where does this 60% rate come from? By promoting your best individual contributor, you’re asking them to work with a new set of skills. They’re filling a role they may not be prepared for and your remaining team is scrambling to fill the gap.

So,  before you jump to handing out that promotion, take a moment to ask yourself the following questions.

 

Are They Prepared to be a People Manager?

 

People Manager Leadership 1

Much like Liam Neeson in Taken, your top contributor has “a very particular set of skills.” But how many of these skills transfer to the role of a people manager?

It goes back to the concept of Maker versus Manager. Your best individual contributor is a Maker—they focus on creating a specific product or owning a specific service. Managers on the other hand focus on the organization as a whole, company and team goals, and the professional development of their direct reports.

That means your team member will go from day-to-day tasks that focus on creating or making, to a role that’s focused on owning the professional development and performance of other employees — and with that comes a complete shift in their schedules, too. They’ll go from large blocks of brainstorming and heads down time to a calendar full of performance reviews, 1:1s with their direct reports, and ongoing strategy meetings.

This change can be jarring. The stress that comes with being promoted outside of their skill set could mean they begin to feel (for the first time) they aren’t excelling in their role. That sense of personal disappointment leads to a lack of fulfillment and, ultimately, the end of that top performer’s journey with your organization.

A Grovo survey of 500 managers found that 87 percent of managers wish they’d had more training before their promotion.

To help set the employee up for success, offer them a leadership training program to build key people management skills. The training should be multi-faceted and should include self-paced courses, coaching via 1:1 meetings, videos or simulations. Across these modalities, you’ll want to teach your team member the best ways to give feedback, build up their coaching skills, and remind them the importance of verbal and non-verbal communication styles and emotional intelligence.

Are You Prepared to Fill the Void?

Pulling your best individual contributor away from the day-to-day tasks they’ve come to be so good at means you should have a plan in place for how you’ll fill that gap. If you don’t, you may see an impact on your business in terms of quality and service speed, and your customers may even take notice.

You also don’t want your other team members to feel overburdened once you’ve promoted your top performer. If they do, there’s a trickle-down effect that could mean an increase in stress level and decrease in morale.

In order to get ahead of those concerns, make sure you have training in place to help the other team members level up to match the top performer’s current skills.

Their training should be targeted to the specific role and level you’re trying to fill. To kick off the training, use a Behaviorally Anchored Rating Scale (or BARS Chart) to define what not acceptable, good, and great looks like in that vacant role. Then, use it to gauge where your current team members fall and create targeted improvement plans based on their areas of opportunity.

For added sustainment, use a 30, 60, 90-day action plan to help set milestones and measure achievements as they work to improve their skills according to that BARS Chart. Then, meet with these employees at the 30-day, 60-day, and 90-day benchmarks to see if they’re tracking on their current goals.

To be sure you’re ready to make that staffing change, you have to do everything you can to prepare and get ahead of that 60% statistic. This means investing in developing your top performer’s leadership skills and training their replacement. This two-pronged training approach is essential to making sure the transition for your best individual contributor and your team as a whole is as smooth as possible.

Need a hand? We have over a decade of training experience and can help find the perfect blend of training for your unique situation. Want to hear more about self-paced course options, videos or simulations, BARS Charts, or 30, 60, 90-day action plans?  Give us a call.

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