Building skills, improving performance, and investing in people
📚 On vs off the job🎓 Induction training⏱ 16 min📝 3 practice questions
Learning Objectives
By the end of this lesson you will be able to…
Explain why training matters for business productivity and competitiveness
Describe the purpose and content of induction training
Compare on-the-job and off-the-job training
Evaluate the costs and benefits of investing in staff training
Describe the purpose of appraisals in performance management
The Value of Training
Why Do Businesses Train Staff?
For the business
Improves productivity and output quality
Reduces errors and waste
Keeps staff up to date with technology
Helps achieve business objectives
Reduces supervision needed
Improves customer service
For employees
Develops skills and increases employability
Increases confidence and motivation
Enables promotion and career progression
Higher pay potential with more skills
Linked to Maslow's self-actualisation need
New Starters
Induction Training
Definition
Induction training introduces new employees to the business — its culture, policies, systems, and their specific role — before they begin their main duties.
Training that takes place at the workplace while the employee carries out their role — learning by doing, often with a mentor or supervisor.
Advantages
Cheaper — no external course fees
Training is directly relevant to the role
Employee is productive while training
Builds relationships with colleagues
Methods: job shadowing, mentoring, coaching
Disadvantages
Trainer may pass on bad habits
Quality depends on the trainer's skill
Trainee may be slower, affecting productivity
Interrupts the trainer's own work
Training Method 2
Off-the-Job Training
Definition
Training that takes place away from the normal workplace — at a college, external training centre, or online — usually delivered by specialists.
Advantages
Specialist trainers provide high-quality instruction
Broader skills gained — not just job-specific
Employee is fully focused on learning
Recognised qualifications may result
Motivating — shows investment in the employee
Disadvantages
More expensive — course fees, travel, accommodation
Employee is absent from work — lost productivity
Skills learned may not perfectly match the role
Trained employees may be poached by competitors
Evaluation
Investing in Training — Worth It?
Long-term benefits
Higher productivity reduces unit costs
Better quality reduces returns and complaints
Skilled workforce is a competitive advantage
Reduced staff turnover — less recruitment cost
Safer workplace — fewer accidents and claims
Short-term costs
Direct cost: course fees, materials, trainer time
Opportunity cost: employee not doing their job
Risk: trained employee leaves the business
May not see results immediately
Key point: Training is an investment, not just a cost — the business benefits most when it retains trained employees. High staff turnover undermines the return on training investment.
Performance Management
Appraisals
Definition
An appraisal is a formal review of an employee's performance, usually held annually, between the employee and their line manager.
Review past performance — did the employee meet their targets set in the previous year?
Identify training needs — what skills gaps exist? Which training would help?
Set new objectives — SMART targets for the coming year
Discuss pay and promotion — link performance to rewards
Motivate and engage — employees feel valued and heard
Practice Question 1 of 3
A new warehouse operative spends their first day learning about fire exits, health and safety rules, and meeting their team before starting work. This is an example of:
AOff-the-job training at an external college
BInduction training to help the new employee settle in
CAn appraisal reviewing past performance
DKaizen — continuous improvement led by all staff
Correct: B.Induction training introduces new employees to the business before they start their main duties. It typically covers health & safety, company culture, introductions to colleagues, and an overview of their role. It helps new starters settle in quickly, reduces early mistakes, and meets legal H&S requirements.
Practice Question 2 of 3
A retail manager sends a customer service assistant to a two-day external course on advanced communication skills. The employee returns with a certificate. This is:
AOn-the-job training — the employee trained while serving customers
BOff-the-job training — specialist training away from the workplace
CInduction training for a new employee
DAn appraisal — a performance review meeting
Correct: B.Off-the-job training takes place away from the normal place of work — in this case an external training course. It is delivered by specialists and may lead to a qualification. While more expensive than on-the-job training and taking the employee away from work, it typically provides higher-quality, broader learning.
Practice Question 3 of 3
A business invests £5,000 training a skilled coder, who then leaves for a competitor six months later. This scenario best illustrates:
AWhy on-the-job training is always better than off-the-job
BA key risk of training — trained employees may leave, reducing the return on investment
CThat induction training is not worth the cost
DThat businesses should never invest in training
Correct: B. A key risk of off-the-job training is that the employee gains transferable skills and may be poached by a competitor. The business bears the cost but a rival gains the benefit. This is why some businesses use training contracts that require employees to repay training costs if they leave within a set period. Despite this risk, training remains worthwhile on average as the benefits outweigh the risks.
Key Takeaways
What to Remember
Induction training welcomes new starters, covers H&S, and gets them productive faster
On-the-job training is cheaper and job-specific but quality depends on the trainer
Off-the-job training uses specialists and may lead to qualifications but costs more and loses productivity
Training is an investment — long-term benefits (productivity, quality, retention) outweigh short-term costs
Appraisals review performance, identify training needs, set targets, and link achievement to reward