Training to become a high performing organization

April 2013

Greetings!

The investment in human capital pays high dividends to an organization. Not only do employees feel more valued but the organization experiences higher profit margins and revenues. Additionally, investing in human capital minimizes dependence on outsourcing for talent. The new focus becomes building talent through development of core competencies so employees can continue to rise in the ranks from frontline managers to executive leadership. However, for this to be successful, frontline managers must have the training they need to be successful. The 2010 DDI study, Finding the First Rung, identified "only 11 percent [of frontline managers] were groomed to be a leader by their organization." Investing now in training will help to ensure a more successful tomorrow.

TRAINING TO BECOME A HIGH PERFORMING ORGANIZATION

As the economy continues to chug along at a snail's pace, companies continue to be plagued by the question: to train or not to train? While the phrasing may invoke memories of your high school English class (think Shakespeare), the reality is that many organizations are choosing not to train to save money. However, before companies make the final determination on funding training programs, they need to consider the return on investment training programs can provide. Companies that invest in human capital through "leadership development, talent management, and performance management, for example, experience substantially higher revenue growth and profit margins" (bcg.perspectives.com).

While conducting research for this post, we came across an article/study on the Boston Consulting Group's (BCG) website entitled "Realizing the Value of People Management - From Capability to Profitability." The article presents the parallel between people management capabilities and financial performance. For their research, they reviewed Fortune magazine's "100 Best Companies to Work For". They found that "the perennial '100 Best' (that is, the companies that have made the list for three or more years) outperformed the S&P 500 in eight out of ten years-and over the course of the decade, [cumulatively] beat the S&P 500 by 99 percentage points." (To view a chart representation from BCG, please click here.)

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NEW! INDUSTRY OUTREACH SAFETY EDUCATION PROGRAM

northampton.edu/SAFETY

Participants, especially those from entry-level general and construction industry positions, will gain a broad awareness of how to recognize and prevent hazards within the confines of their respective workplaces. This 10-hour program is based on the Occupational Safety and Health Administration's General Industry and Construction Industry Outreach Training Program.