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Importance of Training and Development to Organisation and Employees

Last Updated : 06 Apr, 2023
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What is Training and Development?

Training is a process by which the skills, talents, and capabilities of the employees of an organization are increased. Training helps employees to grasp new skills and utilize the knowledge provided. It is not only required by the new employees, but it is also necessary for the current staff. It is not a one-time job. It is a continuous process that helps increase the performance of the employees and prepares them for their new job or keeps them updated on their present job. It is a systematic approach that guides the employees and teaches them how to handle the given responsibilities. Training of employees is essential as they need to be updated on the advancement in technology and the latest development.

Development is a process that deals with the overall growth of the employees and the organization. It not only focuses on employees in learning new skills, but also helps them build their personality, become mature, and realize their potential, which will further lead them to become better employees and better people. It is a process that encourages employees to face their fears and find out their hidden talents. The organization must provide sufficient growth opportunities to the employee for the development of the employees, or else the employees may get discouraged. 

The field of training and development is concerned with improving the performance of the employee as well as the organization. It deals with increasing the capacity of the employees, whether new or current, through learning. It is usually done by helping the employees to increase their skills and knowledge. 

Importance of Training and Development

Back in the days, when the jobs were straightforward and the change in technology affecting the organization was minimum, there was very little need for the employees to enhance their skills. In the fast-changing business environment and rising complexities, organizations are under increased pressure to readapt the products and services being produced, the approach through which the products and services are being produced and supplied, the kinds of jobs necessary, and the skills essential to fulfil the requirements of jobs. Therefore, the need for training and development has increased due to the complexity of the jobs. Training and Development are required by both the employees as well as the organization.

Importance to the Organisation

The benefits of training and development are as follows:

  • Reduces cost of production: Training is always better than hit and trial methods, which are mostly a waste of time and effort. On the other hand, training is a systematic approach for the employees to learn and gain knowledge. The employees work economically, using the resources efficiently, which prevents wastage of materials and reduces the cost of production.
  • Higher productivity: Training strengthens the productivity of the employees both in qualitative and quantitative terms, which further leads to higher profits.
  • Prepares future managers: Training benefits all employees whether they are new or old. It also trains the future manager who can take charge of the organization in the absence of the present manager due to any kind of emergency.
  • Better response to fast-changing environment: Training keeps the employees of the organization updated on the changes in the organization as well as increases their response to the rapid changes in the business environment, be it technical or economical.
  • Increases morale of employees: Training helps increase the morale of the employee and also decreases absenteeism and employee turnover.
  • Reduces accidents: Training helps to reduce accidents in the workplace as employees are given proper training on how to operate machinery or the system on which they are working.

Importance to the Employees

The following are the benefits of training and development for the employees of the organization:

  • Career Growth: Training improves the knowledge and skills of the individuals making them efficient, which leads to growth in their careers.
  • Increased earnings: Well-trained employees work efficiently and effectively, which increases the performance of the employee and encourages them to earn more.
  • Safety of employees: Training makes the employees more adapted to the working of the machines, and they are able to handle them more efficiently. Hence, the employees are less exposed to accidents. 
  • Higher morale: Trained employees tend to know their job better, which helps increase the morale and satisfaction of the employees as they are able to perform better than others. 


Education is a process that increases the knowledge and skills of employees. It is the acknowledgement and analysis of knowledge. It does not provide a clear-cut answer, but rather develops a logical and rational mind that can establish relationships among relevant variables, thereby understanding a phenomenon. Education conveys qualities of mind, character, and understanding of basic principles and establishes the capabilities of evaluation, synthesis, and objectivity. Training is concerned with the goals of the organization more than the goals of the employee.

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