In an ever changing and fast paced corporate world, training and development (Organizational Capacity Building) is an indispensable function and is becoming critical to the success of private and public sector development, as well as Non-profit Organizations (NGOs). Training and development are one of the lowest things on the priority list of most companies. When it’s organized, it is often at the persistence of the human resources department. There is, however, enormous value in organizing proper training and development sessions for employees. Training allows employees to acquire new skills, sharpen existing ones, perform better, increase. With reduced budgets and increased demands from donors and other stakeholders, organizations need to incorporate Organizational Capacity Building (OCB) in order to achieve the expected results. Embracing and integrating formalized Organizational Capacity Building (OCB) within an organization involves more than merely completing a training program.

Employee training and development programs are essential to the success of businesses worldwide. Not only do these programs offer opportunities for staff to improve their skills, but also for employers to enhance employee productivity and improve company culture. They also can reduce employee turnover and a 2020 Work Institute study shows just how important that can be for a company’s bottom line. Voluntary employee turnover, according to the report, costs U.S. businesses more than $630 billion annually.

It’s no surprise that employees who get regular opportunities to learn, develop, and advance are more likely to stay with a company. Bob Nelson, author of 1,001 Ways to Engage Employees, reports that learning and development are among the top factors in employee engagement. Employee development is the continuous effort to strengthen work performance through approaches like coaching, training sessions, and leadership mentoring.

Employee training and development programs are critical for enhancing employee performance. In fact, a 2019 report published in The International Journal of Business and Management Research indicates that 90% of employees surveyed agreed or strongly agreed that training and development programs improved their job performance.

Employee productivity is another area where the importance of training and development can be seen. Employees who take part in effective training and development programs work more efficiently. Employee productivity can be an indicator of a training’s effectiveness. Below are some examples of ways that training and development programs boost employee productivity.

Considering the costly prospect of employee turnover, companies are seeking ways to keep employees on board. Training and development are important to reducing employee turnover. The Work Institute study shows job characteristics such as training comprised the fastest-growing category of reasons for voluntary turnover up 117% since 2013. And, in 2019, educational technology company Instructure released results of a survey showing that 70% of U.S. employees say they are at least somewhat likely to leave a current employer and take a new role with an employer that invests in training and development. The following are some ways that employee training and development are key in reducing employee turnover.