Is There a ReTurn On the Investment of Management Training?

Is There a Return on the Investment of Management Training?

Customer satisfaction is no doubt dependent on a great number of variables. While it may be difficult to measure the actual benefits of training in terms of customer satisfaction, it appears essential to provide some type of training for employees to improve job performance. According to Smith (2001), staffs who have received formal training have been found to be up to 230 percent more productive than untrained colleagues working in the same role. Therefore, it becomes clear that the development of an organization's human resources is a high priority for today's business leaders.

Preparation of staff should be well-planned and supportive of the company's goals. Successful companies build a consistent system with clear constraints, allowing employees some freedom accompanied with responsibility (Collins, 2001). Managers simply cannot rely on their employees coming in with all the necessary skills to be successful in their positions. Some may require more computer skills, while others need receptionist or time management skills. Individual needs should drive the training program and this is not always an easy task to accomplish. A one-size-fits-all approach to management training will most likely not be highly successful.

Larry Seldon, a Columbia University professor, stresses that "different customers have different customs, different values, different psyches and different needs." (CNNMONEY, 2004) Each employee's needs may be as individual as their customers' needs. When dealing with human emotions and performance, the results are not always predictable or certain. A recent University of Michigan study revealed that customer satisfaction has declined about three percent over the last five years (CNNMoney, 2004). Good managers recognize that customer service and satisfaction are key elements to be successful in the business world. Training is one of the primary ways to increase employee skills and productivity. Employees need to be well-trained in current job skills, and learn new skills on a continuing basis in order to remain competitive (Fernald & Solomon, 1998). Employers need to provide ample opportunities for employees to develop their abilities.

A new method of providing this training is through the use of the Internet. Rural communities with small businesses do not have the resources available to provide ongoing, systematic training programs for their employees. William Shuffstall, County senior extension agent, maintains that small businesses need to stay viable because their communities depend on them to keep the local economy alive (Burlingame, 2002). The effective use of technology can assist these small businesses with effective and current training strategies.

In times of reduced resources and increased competition, it is important to attract new customers and keep the old ones coming back. Deep and Sussman (1995) provide several practical techniques for achieving exceptional customer service. The best way to attract and retain customers is to develop a superb reputation for treating them special and as individuals. Clearly establishing a customer service vision, followed by employee orientation and training will set the stage for improved customer relations. It is essential to teach people to meet expectations through specific modeling and clear communication. If improved telephone skills are needed, the entire staff will need to be trained on what those expectations are. The secretary or receptionist can unintentionally send hidden messages to the public about the business; the voice customers hear is the voice of the company. Equip employees to deal with difficult situations and unhappy customers and establish a 'can do' attitude to help resolve differences in the workplace. Walt Disney said, "People spend money when and where they feel good." By consciously working toward making the customers feel good and to send the message they are getting a good value, business is more inclined to show a profit.

Fernald and Solomon discovered one of the most prevalent problems in the training process was communication (1998). Effective listening, clear and correct speaking, maintaining eye contact, and empathy in the workplace are key components to improving communication. It must be among all employees and with all customers, treating everyone with equity. Giving compliments, offering extra services, a positive attitude, and using names within the conversation all lend themselves to warmer customer relations. Well-written job descriptions will spell out the company's expectations. Timely evaluations that provide feedback for improvement