Impact of Training and Development on Employees Performance in Banking Sectors

 

The training and development of employees is considered a critical part in human resource management in any organization, it gives motivation, purpose and the drive for the employees to move forward to improve their careers which in turn will benefit the organization. Training and development is required to improve employee enhancement, job knowledge, skills, employee capacity, ability and skills. Training and development has been contributed to achieve organizational goals, objectives and target and also it is helped to achieve the individual goals and objectives of the employee and moral within the particular organization. (hrhelpboard, 2023)

Nowadays nature of the working environment is changing because of the globalization, technology changes and change of economic environment change. So the organizations are facing more competition specially banking sectors have more competitors in their industry. So the employees need to adopt the new technology innovation and the employees’ wants to improve their employee’s performance. So the organization should provide better training to their employees. (Aruna, 2019)

Employee Performance

Employee performance is defined as how well a person executes their job duties and responsibilities. Many companies assess their employees’ performance on an annual or quarterly basis to define certain areas that need improvement and to encourage further success in areas that are meeting or exceeding expectations.

Assessment of employee performance can vary across industries, roles, and businesses, but a few general Key Performance Indicators (KPIs) include:

Sales revenue: How much revenue is the employee directly generating or indirectly influencing per quarter? This is particularly relevant for sales roles, where performance is often measured by the amount of revenue generated.

Customer satisfaction: What’s the level of customer satisfaction with the service or product provided by the employee? This can be measured through surveys or other feedback mechanisms.

Quality of work: How is the employee’s work quality compared to other employees? This includes measuring accuracy, attention to detail, and adherence to quality standards.

Attendance and punctuality: What’s the employee’s attendance and punctuality record? Obviously, an employee can’t be a good performer if they’re missing work or are regularly late.

Efficiency and productivity: How efficient and productive is the employee? This measures how well an employee completes tasks, plus the volume of work produced within a given time frame.

Time management: How well does the employee manage their time? Time management skills and an employee’s ability to efficiently prioritize tasks are vital to success – both for the employee and the organization.

Teamwork and collaboration: How well does the employee work with others? This KPI evaluates an employee’s ability to work collaboratively, communicate effectively, and contribute to team goals.(litmos, 2023)

Importance of Training and Development

Addressing Employee Weaknesses

Most employees have some weaknesses in their workplace skills. A training program allows you to strengthen those skills that each employee needs to improve. A development program brings all employees to a higher level so they all have similar skills and knowledge. This helps reduce any weak links within the company who rely heavily on others to complete basic work tasks.

Providing the necessary training creates an overall knowledgeable staff with employees who can take over for one another as needed, work on teams or work independently without constant help and supervision from others.

Improved Employee Performance

An employee who receives the necessary training is better able to perform her job. She becomes more aware of safety practices and proper procedures for basic tasks. The training may also build the employee's confidence because she has a stronger understanding of the industry and the responsibilities of her job. This confidence may push her to perform even better and think of new ideas that help her excel.

Continuous training also keeps the employees on the cutting edge of industry developments. Employees who are competent and on top of changing industry standards help your company hold a position as a leader and strong competitor within the industry.

Structured Training and Development

A structured training and development program ensures that employees have a consistent experience and background knowledge. The consistency is particularly relevant for the company's basic policies and procedures.

All employees need to be aware of the expectations and procedures within the company. This includes safety, discrimination and administrative tasks. Putting all employees through regular training in these areas ensures that all staff members at least have exposure to the information.

Employee Job Satisfaction

Employees with access to training and development programs have the advantage over employees in other companies who are left to seek out training opportunities on their own. The investment in training that a company makes shows the employees they are valued. The training creates a supportive workplace.

Employees may gain access to training they wouldn't have otherwise known about or sought out themselves. Employees who feel appreciated and challenged through training opportunities may feel more satisfaction toward their jobs.

Training and development is another kind of activity that the NDB bank undertakes in regarding establishing a better human resource management policy. NDB bank is making a carrier development plan to capture the next target of the company. The company wants to identify the employees and use the most suitable and needed training to the employees, it will enhance the skills and performance of the employees there are two kinds of training methods namely on the job training and off the job training, on the job training method explains about the training the employees while they are working this will help to improve the technical skills of the employees NDB bank is imposing the on the job training to their employees to get the required knowledge by the employee to perform his job correctly and identify what kind of job that he needs to perform. Off the job training explains the that the training that will conduct away from the physical workplace, this is done through seminars, role plays, presentations etc., NDB bank Is offering off the job training to their employees to educate them about the field and generate a further understand about the field that the employee is into. (ndbbank, 2017)

References

Aruna. (2019). researchgate. Retrieved 04 21, 2023, from https://www.researchgate.net/publication/333760163_The_Impact_of_Training_on_Employees_Performance_in_Banking_Sector_With_Special_Reference_to_Bank_of_Ceylon_in_Sri_Lanka

hrhelpboard. (2023). Retrieved 04 23, 2023, from hrhelpboard: https://www.hrhelpboard.com/training-development.htm

litmos. (2023). Retrieved 04 28, 2023, from litmos: https://www.litmos.com/platform/define-what-is-employee-performance

ndbbank. (2017). Retrieved 04 25, 2023, from https://www.ndbbank.com/annual-report/2017/management-discussion-and-analysis.humcap#:~:text=OUR%20APPROACH%20TO%20HUMAN%20CAPITAL%20MANAGEMENT&text=Employees%20are%20also%20governed%20by,conflicts%20of%20interest%20among%20others.