IMPACT OF TRAINING AND RETAINING OF EMPLOYEES IN ORGANIZATIONAL PERFORMANCE

CHAPTER ONE

INTRODUCTION

1. Background of the study

In the current competitive landscape, organisations are exerting significant effort to develop an optimal approach that will improve customer retention and reduce employee turnover. Organisations have recognised that workers' abilities may lead to a competitive advantage. A proper retention strategy has significant significance, with many techniques focusing on staff training and remuneration. Aleem & Bowra (2020) assert that organisations lack interest in offering trainings of a wide character. They are prioritising specialised trainings that are directly applicable to a certain work, yet these trainings may render personnel unsuitable for use by rivals. They are imposing restrictions on workers' mobility inside the sector. Organisations are increasingly focusing on developing specialised skills in their workers rather than having them do a wide range of tasks. In contrast, some organisations see employee training as an investment and anticipate a return in the form of employee engagement and retention (Alshmemri, Shahwan-Akl & Maude, 2017).

Organisations are now implementing many retention strategies and are in the process of identifying the most suitable one that aligns with their organisational context. Many organisations are still contemplating whether training has a substantial influence on staff retention or not (Alshurideh, 2019). This assessment might be valuable for organisations to assess if the results of training and development practices are beneficial for the organization's employee retention. Employees who prioritise skill development for career advancement may be more inclined to work for an organisation that consistently provides them with effective training and development opportunities (Al-Tokhais, 2016). There may exist an indirect correlation between the supply of trainings and employee retention, with dedication serving as a connecting factor. The organisation does not disregard other human resource activities than training and development, however the proportion of implementation for each activity varies.

The paramount concern for any organisation, whether it is a for-profit or non-profit one, is organisational performance. Managers must possess knowledge of the elements that impact an organization's success in order to effectively implement necessary measures. Nevertheless, the process of defining, conceptualising, and assessing performance has proven to be challenging (Aruna & Anitha, 2015). The performance of the organisation has been negatively impacted by both a lack of clear definition and a conceptual issue. According to Bediako (2019), the idea of organisational performance in contemporary management lacks clarity in several aspects, particularly in terms of definition and assessment. Beynon, Jones, Pickernell & Packham (2015) distinguish between performance and productivity. Productivity refers to the amount of work completed within a specific timeframe, expressed as a ratio. On the other hand, performance encompasses a wider range of indicators, including productivity, quality, consistency, and other relevant factors. Productivity measurements were often taken into account in result-oriented appraisal. Biewenga (2020) posited that performance measures encompass both outcome-driven behaviour (criterion-based) and comparative (normative) measures, as well as education and training, concepts and tools, such as management development and leadership training, which are essential for cultivating the requisite skills and mindsets for effective performance management. Prior studies have used several criteria to assess organisational success. The characteristics included in this list are profitability, gross profit, Return On Asset (ROA), Return On Investment (ROI), Return On Equity (ROE), Return On Sale (ROS), revenue growth market share, stock price, sales growth, export growth, liquidity, and operational efficiency (Cascio, 2015). The significance of organisational performance is widely acknowledged. However, Damei (2020) highlights the presence of inconsistent measurement methods for organisational performance. While many researchers rely on quantitative data such as return on investments and return on sales, there is a lack of uniformity in these measurements. The concept of performance include both efficiency-related metrics, which pertain to the connection between input and output, and effectiveness-related metrics, which address factors such as company development and staff happiness. In addition, performance has been defined by using financial and non-financial indicators derived from both objective and subjective sources. Therefore, based on the little literature examined, it is suggested that the word "performance" should include a wider range of factors, such as effectiveness, efficiency, economy, quality, consistency, behaviour, and normative metrics (Duah & Danso, 2017). Therefore, the researcher examine the impact of training and retaining of employees in organizational performance

1. 1. Statement of the problem

Although organisations are increasingly focusing on training their employees, there is a lack of literature on human resource development issues in developing countries (Elsafty, 2018). Additionally, there is growing concern among organisational customers regarding the poor quality of services in the telecommunications sector. It is important to mention that while there is a significant amount of knowledge regarding the economics of training in developed countries, there is a scarcity of research on training-related problems in less-developed countries. Prior research in this domain (Elsafty, 2018) has mostly focused on general human resource management (HRM), leaving a void in understanding the impact of training on employee performance. This research aims to narrow the existing gap in the literature and provide a foundation for comprehending many areas of human resource management, specifically focusing on training. Hence, the study will examine the impact of training and retaining of employees in organizational performance.

1.3 Objective of the study

The broad objective of the study is to examine the impact of training and retaining of employees in organizational performance. The specific objectives is as follows

1. To ascertain the extent to which training and retaining influence employees in organizational performance.

2. Assess the types of training available to employees in an organization

3. Find out the impact of training and retaining of employees on organizational performance

1.4 Research Question

The following questions have been prepared for the study

1. What is the extent to which training and retaining influence employees in organizational performance?

2. What are the types of training available to employees in an organization?

3. What is the impact of training and retaining of employees on organizational performance?

1.5 Significance of the study

This findings of the study aims to assistorganizations in evaluating its position regarding staff training and retention. The study will focus on the impact of training and development on the quality of output and the performance of workers. Additionally, it will explore ways to enhance employee motivation and improve productivity in the short, medium, and long term.

This work might serve as a valuable reference for academics and scholars doing future study. Furthermore, this research will be of great use to students studying Management Science, particularly those with aspirations of becoming managers or owning their own firm. They will likely utilise this research to understand the impact of staff training on organisational success.

1.6 Scope of the study

The study focuses on the impact of training and retaining of employees in organizational performance. Hence, the study will ascertain the extent to which training and retaining influence employees in organizational performance, assess the types of training available to employees in an organization and Find out the impact of training and retaining of employees on organizational performance. Hence, the study is delimited to Wema Bank, Akure, Ondo State.