Benefits of Investing in Training and Development

Benefits of Investing in Training and Development

The global trend in telecommunications has moved away from traditional telecom companies (telcos) towards more technology-driven and innovative enterprises (techcos). This shift is fueled by the swift pace of technological advancements and the growing demand for digital services (KPMG,2024).

To adapt to these rapid changes and maintain sustainable business growth, the telecommunications industry must ensure that its employees are continuously updated and trained.

Training is a key aspect of human resource development, involving a systematic approach to enhancing employees' knowledge, skills, and competencies to boost performance levels. This process encompasses organizational activities aimed at transferring skills or information to employees, enabling them to perform their current jobs effectively while also preparing them for future challenges (Salas et al., 2012). Well-designed training is crucial for gaining competitive advantages, as it not only imparts knowledge but also ensures that learning translates into improved job performance (Salas et al., 2012).

Development refers to a continuous effort to improve and enhance an employee's skills and abilities, ultimately aimed at boosting their performance levels. The primary focus is on achieving organizational goals and objectives while also preparing the employee for future roles and responsibilities. Development is an ongoing process that fosters both personal and professional growth (Kraiger, 2008).

How Training and Development Support to Telecommunication Sector?

• Improved Organizational Performance

The telecommunications sector is a rapidly evolving industry where employees require specialized knowledge and must stay updated daily on new technologies, skills, and information to remain competitive. In this context, training and development are crucial for preparing employees to face challenges and succeed. Therefore, well-designed training and development programs should not only focus on transferring knowledge but also assess whether this knowledge has led to improved performance (Salas et al., 2012).. In real world scenario,  HR teams organize training programs that are confined to specific time periods, which can lead to increased training costs and uncertain outcomes. To ensure effectiveness and align with business goals, the training team should focus on identifying the exact requirements of employees before initiating a training and development program. This targeted approach is crucial for achieving business success.

• Skills Development

There is a strong correlation between the capacity of training institutes and the development of telecom personnel's skills. However, Spencer (2007) argued that training and development can lead to training fatigue if sessions become dull, causing both learners and trainers to become disengaged and less effective.

Since the entire company focuses on delivering technological products to customers, management should ensure that technical knowledge is also shared with customer-facing personnel, such as salespeople and customer service officers, rather than keeping it confined to technical staff or engineers. Effective knowledge sharing across teams will enhance the company's overall performance and improve customer interactions.

• Productivity Enhancement

The training and development planning process plays a crucial role in influencing employee productivity. Aguinis (2019) highlights that employee development should benefit both personal and professional growth, emphasizing not only job performance improvement but also the enhancement of capabilities and readiness to face future challenges. A healthy training and development culture within an organization fosters a progressive future for employees (Aguinis, 2019).

As an exmpale, Dialog Axiata PLC, a leading telecom company in Sri Lanka, conducts training for their sales and marketing executives, certifying them as “Solution Experts.” This initiative enhances their knowledge of technical and current solutions, resulting in increased productivity and elevated self-esteem. The advanced knowledge allows them to manage daily marketing tasks more effectively and address customer queries quickly without relying on other departments. This not only boosts customer satisfaction and employee confidence but also positively impacts the company's reputation and profitability.

• Financial Health

The provision of training and development is closely linked to the financial health of an organization (Southiseng & Walsh, 2011). Viewing training as a cost rather than an investment can undermine its impact on company performance. To support performance levels effectively, it is essential to allocate a healthy budget for training and development. Human resources are valuable assets, and investing in them should be seen as an investment rather than an expense. However, if management focuses solely on meeting HR annual KPIs with artificial training programs, without genuine emphasis on development, it can indeed become a cost rather than a benefit to the company (Southiseng & Walsh, 2011).

Training and development play a crucial role in human resource development, enabling companies to foster a progressive and growing future. By investing in these areas, organizations can enhance their employees' skills and capabilities, leading to increased performance and financial benefits for the company.

Reference:

Aguinis, H. (2019). Performance Management (4th ed.). Chicago Business Press.

KPMG.COM (2024), Telco to Techo  The transformation of traditional telecommunications companies (telcos) into more technology-focused and innovative businesses, Available at :   Telco to techco - KPMG Thailand (Accessed on  9^th August  2024) 

Kraiger, K. (2008),  Benefits of Training and Development for Individuals and Teams, Organizations, and Society. Annual review of psychology. 60. 451-74.

Kraiger, K., Mclinden, D., & Casper, W. J. (2004). Collaborative planning for training impact. Human

Resource Management, 43(4), 337-351.

Salas, E., Tannenbaum, S. I., Kraiger, K., & Smith-Jentsch, K. A. (2012). The Science of Training and Development in Organizations: What Matters in Practice. Psychological Science in the Public Interest, 13(2), 74-101.

Southiseng, N. & Walsh, J (2011). Training and Development in Telecommunications. 3.

Spencer, J. (2007). How to reinvigorate enthusiasm for training. People Management, 13(8), 52.