The global business environment has never been as intensely competitive as at present. This has forced companies to 'create improved efficiencies', 'downsize', 'right-size', 'cut costs' and 'streamline processes'. These and many other such phrases are now very familiar parts of corporate-speak. But, whatever terms one may use, any or all of these terms are part of the effort of creating success stories from low investments, to produce great results. Easier said than done, you may say, and quite rightly so. For a company to be successful today, its workforce, which has to 'do' the needful, must be:

• Diverse
• Innovative
• Insightful
• Knowledgeable

This can only be achieved by investing in and upgrading an organisation's most valuable asset - its people - by giving them ongoing training and education. Earlier, companies thought employee training and development were optional but not essential for growth, a viewpoint that turned out to be expensive, both in terms of short-term profits and long-term progress.

In today's economy, if your people are not given a continuously learning environment, your company's going to fall behind; a business evolves only as its people learn. The employees are the ones that produce, refine, protect, deliver and manage the company's products and / or service every day, year in, year out. In the rapidly changing business dynamics of the 21st century marketplace, continual learning is critical to a business's continued success.

Beyond remuneration
Success clearly lies in treating employees well, especially in people-intensive industries like retail, banking, transportation, government, healthcare and customer service. Employer should realise that compensation is only a small part of this equation. Many service leaders, including Wal-Mart for example, pay employees substantially less than their competitors do, but manage to retain them because they treat them so well, train them, praise them, and respect them irrespective of their roles.

The training industry in India has acquired new dimensions in the recent past. Training has come out of the HR closet and evolved to become an effective business tool. More than an employee retention tool, training has evolved to become a critical business enabler for effective sales, leadership, relationship building, increased production, etc; it is increasingly being linked to business outcomes. This evolution underlines how every organisation needs to optimally deploy its most critical resource - people - efficiently, to effectively impact business results.

A growth industry
The training industry in India is estimated at around Rs5,000 crore, and promises a massive growth potential. Its real expansion potential can be gauged from the fact that it is a $100 billion industry in a developed economy like the US.

Fundamentally, training is a delivery mechanism for structured learning. It is just a means; the end output is the set of knowledge and skills that the trainee imbibes by the end of any program. Misgivings about training programmes in the past are linked to the fact that they were perceived as a process divorced from output.

'Right-sized' training
Training is not an open dialogue, since there is a structured method of communication, and programmes are usually conducted in batches of 15 to 20 participants. As they are interactive in nature, an optimum batch size ensures that there is sufficient time and opportunity for participants to individually interact with faculty, voice their doubts and hone their learning. At the same time, it ensures there are enough trainees to create a meaningful interaction and a productive interchange of ideas during the sessions.

Does it work? Training has been around for a long time. Increasing pressure on productivity has forced organisations to focus on training as a means to enhance performance. However, there are still many who are sceptical, and doubt its efficacy. But usually, this scepticism stems from ignorance about what modern training is about, and what it can deliver.

Getting results
Trainers start with the premise that better selling skills, better managerial skills and better teamwork are not just based on personality. Rather, people who deliver results are those who work consistently and use their skills and behaviour more effectively.

Research has highlighted specific benefits that businesses can derive from training and developing its workers. These include:

• Increased productivity
• Reduced employee turnover
• Increased efficiency, resulting in financial gain
• Decreased need for supervision

Training helps employees develop a greater sense of self-worth, dignity and well being, as they become more valuable to the firm and to society. Usually, they receive a greater share of the material gain that results from their own increased productivity. These factors create a sense of satisfaction through achievement of personal and corporate goals. Training also equips organisations to keep pace with fast changing business dynamics.

For example, a sales training programme conducted by NIS Sparta for Coca Cola resulted in a 17 per cent increase in sales while an intervention with the Indian Railways, which launched a customer goodwill movement, resulted in a 34 per cent increase in the customer satisfaction score.

How and why
Normally 'training' is associated with classroom lectures. But, in fact, the most effective learning usually takes place on the job. Trainers as 'on the job' coaches facilitate learning in the workplace. A coach can involve trainees in reviewing tasks, sharing ideas, and supporting each other, all of which contribute to practical learning and skill development.

A new form of learning, which is in vogue these days, is 'experiential learning', in which the trainer facilitates learning by drawing analogies from the workplace and relates those to outbound activities such as raft building and orienteering, as well as to business simulation games.

The future, however, lies in 'blended learning', which is, as the name suggests, a blend of traditional instructor-led classroom training, learning through the internet and experiential learning. In the US, most corporate and technical training modules use a blended approach, and the concept is catching on in India too.

A good training manual acts as a building block of practical and technical skills, which is required to prepare the individual for his or her role. Every organisation needs to have one today. Employees are the principal asset of any business. Investing in them thoughtfully and strategically will reap rewards that will pay off now and in the years to come.