Is there relationship between training & development and loyalty of employee?

 

Importance of Training & Development:

Several researchers identify the usage and the importance of the training and development to the organization in their researches. (Khan, 2017, Singh & Malhotra, 2018) Training presents a prime opportunity to expand the knowledge base of all employees, but many employers find the development opportunities expensive. Employees also miss out on work time while attending training sessions, which may delay the completion of projects. Despite the potential drawbacks, training and development provides both the company as a whole and the individual employees with benefits that make the cost and time a worthwhile investment. Most of the authors identify the more benefits of the training and development to the organization. (Khan, 2017) Scholars, experts, social scientist and school administrators now recognize the fact that training is obviously indispensable not only in the development of the individuals but also facilitate the productive capacity of the workers. Training is not coaxing or persuading people to do what is wanted but rather a process of creating organizational conditions that will cause personnel to strive for better performance. (Gamage & Imbulana, 2013)

Importance of employee loyalty:

When discuss about the importance of employee loyalty, it is a distinct advantage to the company by keeping their performed employees to increase their profit margins and compete with the other competitors in the market. Employee loyalty depends on many factors like job satisfaction Assessment on personal responsibility, technical skills, functional skills and supervisor support etc. but there is relationship in between training and development. Actually training and development is an aspect of human resource practices that help in enhancing employees’ skills, knowledge, and competency capable of improving employees’ ability to perform more efficiently. Training and development plays a vital role in the effectiveness of an organization

Major concepts related to employee loyalty:

There are different definitions of employee loyalty given varying research methods, subjects and goals. There are three type of commitment construct. Those are retention commitment, value commitment and effort commitment as the main constructs (Shu-Hua, 2000) (as cited in Wang, Lee and Chih Ho 2012). (W.A.S.Weerakkody , W.G.S.Mahalekamgeb, 2013). Retention commitment means, employees are liked to have preserve at long period of time in the same company because they would have good image to the company. So having high loyalty may lead into low retention rate of the employees. Low retention level arise the low expenditure rate and through that it leads to high profit margin at the end of the year.

Value commitment defines as the giving value to the stay at long period to the employees. This is also good strategy to minimize the retention level of the company. Effort commitment is also giving rewards to the employees to their efforts. These are strategies to retain the employees and increasing the loyalty of them.

 

Relationship between training & development and employee loyalty:

The level of employee engagement is considered to be the major driving force for employee loyalty. (Cunha, 2002) defines employee loyalty as the employees who are involved with the organization are doing their best for the victory of the organization. Studied by Schaufeli and Bakker (2004): M. Shuck (2010) and research by Ram and Prabhakar (2011) proposed that those employees are more loyal and less turn over from the organization who are engaged within the organization.  Additionally, due to the high turnover rate in telecommunication industry, it was worth to examine the relationship between training and development and employee loyalty or intent to stay.

Training is one of HR’s most visible responsibilities. The opportunity to develop new skills measures the employee’s assessment of the organization’s training program. If the company provides related training and development programs by identifying need of the employees, then it is the relationship in between these two variables. Without training and development the company cannot run their business successfully using their employees.

Furthermore, organizations that invest more in training have a significantly higher level of organizational performance as measured by the quality of the product or service offered, new product development, ability to attract and retain essential employees, and customer satisfaction (Harel & Tzafrir, 1999). According to this statement, to invent new products and digital environment to the field of telecommunication, IT related employees have to satisfy with the training and development programs which are related to their field. So it has unique relationship between training and development and loyalty. Loyalty comes with their satisfaction level. So providing effective and quality training and development programs may lead towards to satisfaction employee. Hence it is worth to find out the relationship between training and development and employee loyalty to set company goals.

 

Bibliography:

Bibi, P., Ahmad, A., & Majid, A. H. A. (2018). The Impact of Training and Development and Supervisors Support on Employees Retention in Academic Institutions in Pakistan: The Moderating Role of the Work Environment. Gadjah Mada International Journal of Business, 20(1), 113–131.

Fletcher, L., Alfes, K., & Robinson, D. (2018). The Relationship between Perceived Training and Development and Employee Retention: The Mediating Role of Work Attitudes. International Journal of Human Resource Management, 29(18), 2701–2728.

Imbulana, P. N. G. (2013). Training and Development and Performance of Employees: Evidence From Sri Lanka Telecom. Intrenational Journal of Marketing, Financial Services & Management Research, 2(9), 12–24.