Advantages of On-The-Job Training for Workers and Companies

Jul 1, 2022

Employee training is an important part of any organization. Passing on skills and best practices helps your team thrive. While employers can invest in formal training and onboarding, they can also develop a culture of informal on-the-job training.  

While 70% of employees say their current employer has provided formal training in the past 12 months, 96% say their employer has provided informal training. On-the-job training is a low-cost, high-return opportunity to make your company more efficient. Here’s what you need to know.   

Employee benefits of on-the-job training

Employees who receive on-the-job training reap several benefits in their careers. When employees have the skills to do their jobs at their best, they can get the work done faster and with fewer errors and accidents. Feeling confident in their work can boost morale because employees know they are doing good work. 

Additionally, career development can increase engagement. McKinsey found that career development was one of the top reasons why employees stay or leave companies. A lack of training can drive employees away, while investment and skill-building can keep people engaged. 

Skill development and practical experience

On-the-job training allows employees to immediately apply what they learned and gain hands-on experience that reinforces key concepts. While formal training is valuable, it is sometimes disjointed from the daily tasks of your team. Additionally, your employees might forget some of what they learned in the classroom by the time they can apply it. 

With on-the-job training, employees better retain the information because they apply the skills immediately. The training is also targeted to specific positions and job requirements, so there’s never a disconnect between what the employees learn and what they need. 

Organizational advantages of on-the-job training

Your employees aren’t the only ones who benefit from on-the-job training. Skilled team members are more productive because they make fewer errors and can overcome problems on their own. This means projects get done quicker and better.  

On-the-job training is also more cost-effective than formal training and onboarding programs. You can develop a company culture where managers pass down information and employees share insights with each other.

Informal training can also foster knowledge retention. If one employee leaves, they’re less likely to take exclusive operational knowledge with them. Another employee can step into their role, minimizing productivity loss. 

Increased employee retention and loyalty

Not only is on-the-job training affordable and beneficial, but it also has long-term savings. Investing in employees can boost engagement and loyalty, which means your team members are less likely to leave. This prevents productivity gaps. Your workers enjoy a stable environment and don’t have to fill in for peers who leave. 

In the long run, greater retention saves your business in turnover costs. Companies spend between one-half to two times an employee’s salary to replace them. When a team member who makes $50,000 quits, your company spends between $25,000 and $100,000. This adds up when multiple employees leave each year. 

Customized skill development

On-the-job training helps you customize what your employees learn and when. This ensures the training is relevant and applicable. One-size-fits-all training does not work. Some team members need specific skills that only a few people within your organization can pass on. 

If you want to increase your organization’s overall competitiveness, allocate your training budget effectively. Make sure each person receives the right skills so they can apply these concepts to their daily tasks.  

Implementing effective on-the-job training programs

While on-the-job training might already occur within your organization, it is important to develop specific programs to support these efforts. Work with your managers to explain how to implement these processes, along with the objectives and outcomes you expect. 

On-the-job training is often done by internal teams, rather than by training professionals. This means it is up to your managers to identify what skills their employees could benefit from. 

Identifying training needs and goals

The first step is to encourage managers to conduct a skills gap analysis to identify which skills employees are lacking. Most teams will focus their efforts on new or underdeveloped skills for team members.

As managers identify valuable skills, ask them to tie those skills with organizational goals. For example, you may decide to implement fire response training to create a safer workplace and cut down on accidents.

Selecting appropriate training methods

Once you have goals in place, identify the training methods you think would work best. Every company is different, which means some organizations might benefit from certain types of informal training over others. Here are a few options:

  • Job rotation: This occurs when employees with similar roles switch jobs or tasks to learn what the other does. 
  • Mentoring: An employee can be paired with a mentor within the organization to receive guidance on how to improve. 
  • Shadowing: Employees can follow other team members and watch before trying skills themselves. 
  • Dedicated training sessions: Your management team might set aside periods during the day specifically for training. 

Your company leaders can match employees with the skills they need and the best possible ways to pass them down. Learning techniques might change from one person to the next, especially based on the personality of your team members. Maximize your chances of success by staying flexible in your approaches. Switching how you train staff can help you find the best methods. 

Tools and techniques for effective employee supervision

Leaders should provide feedback and supervision throughout the training process. Providing supervision beforehand can help managers identify key skills that employees need. Following up allows managers to confirm the new skills are being applied. This maximizes the value of on-the-job training because you confirm your efforts are put to use. 

You can use technology to supervise employees during the training process. For example, fleet management tools provide clear data and help teams review incidents and driving trends. There are several features that make remote management easier.  

Implementing regular check-ins and progress reviews

As you monitor your team, set up follow-up feedback sessions to review employee performance. Review the performance data you have, along with qualitative observations. This is a great opportunity to celebrate employee growth while challenging them to do even better. 

Two-way communication is an important part of these meetings. You want your employees to bring up any concerns they have, like concepts they need to review. This can guide your future training efforts. 

Using technology for supervision and training

There are plenty of digital tools and learning management systems you can use to monitor employee performance and provide feedback. For example, a communication gateway allows for clear fleet monitoring, even when drivers are scattered across the country. Managers can provide real-time feedback when drivers are faced with difficult roads or unexpected situations. This makes drivers feel supported while improving their driving abilities. 

Measuring the success of on-the-job training programs

Finally, it is important to take a high-level account of your efforts. Establish key performance indicators (KPIs) that will reflect the success of your training efforts. These could include the number of accidents each month, the number of errors made, or the production rate of your teams. Consider how you will gather data to track KPIs and report on your efforts. This will prove the value of your training investment. 

You can also ask your team for input on the success of various programs. When employees feel comfortable speaking up and asking questions, they can propose new ideas to make training efforts more effective. 

On-the-job training doesn’t have to be time-consuming or expensive, but it has to be part of your workflow. Investing in informal training can have a big impact on morale and your operations. You might be surprised at how this investment pays off.

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