Employee Incentives and Training – Do These Help Improve Quality?

The truth of the matter is that employee training reaps many financial benefits through quality efforts with suppliers. This is because you will receive transparency benefits as well as cross-functional integration, and this is what we are going to look at in this article.

Employee training gives workers a common language, which limits communication barrier or misunderstanding. Furthermore, it also helps your suppliers understand the effects that delays, defects, and others have on the customers. Generally, by improving these issues, the focus will be towards customer satisfaction as well as increased financial benefits.

A common language, transparency, and understanding the impact of role on quality is something every employee should be aiming for. Therefore, the million-dollar question is, what is the relationship between employee training and incentives? Here, GBS Corporate Training explains the answer for us.

Growing Popularity of Formal Training

There is no doubt that training programmes help develop competencies. It helps employees to understand their roles in terms of developing quality services, culture, and ensuring customer satisfaction. Back in 2013, there was a random organisation employee survey, which showed that a majority of organisations do not offer formal training programmes. As a matter of fact, the study showed that only 32% of organisations offered such programmes.

However, by the end of 2016, many organisations were investing in employee training programmes. The survey shows an increase of 43%.

Though there are many financial values in having quality programmes, there are still many unanswered questions; examples include which programmes to offer and who should be trained.

Should You Train All Employees?

Out of the organisations that participated in the survey, 56% mentioned that they offer quality management training (either through compensation or direct training programmes) to employees who are responsible for brand quality. The other 44% say that they offer employee training to all employees, with the aim of creating a quality-focused culture within the organisation.

Even though it looks wise to invest on all employee quality training as a way to develop a shared perspective and creating quality culture; this option will cost you more in terms of ROI (Return on Investment). Research shows that there is a big ROI benefit from offering employee training on employees involved in quality related activities.

Types of Training Programmes

Research shows that a majority of organisations focus on ISO, auditing, quality tools and importance, as well as quality management ethics. Only a few organisations include other customer-related values like Lean, NPS (Net Promoter Score), and Customer Experience. To identify the training programme that offers the best financial benefits and quality, we ran analysis against the type of training offered and the organisation’s financial benefits.

However, we realised that all the type of training discussed in our survey relates to financial benefits. Nevertheless, businesses that offer training on customer value related programmes like customer’s experience, Six Sigma, and NPS, are likely to benefit more. By looking at this with a second eye, it actually makes sense. Firms that use quality as a competitive differentiator, are more likely to benefit more, especially if they focus on enhancing brand image and customer satisfaction.

Conclusion

A good business will use training to drive commitment in regards to quality and create an understanding of employee roles. This does also include driving values as well as customer-related values. All in all, different companies will need different training programmes. It all falls under what they are looking to achieve. This should come before choosing incentive decision or the employees to target.

For example, if the goal of a business is to create a widespread quality culture, then it should focus on employee training programmes that involve quality, the importance of quality measures, and the impact quality has to customers. If an organisation is focusing on potential price premiums and customer values, then it should consider training programmes aimed at NPS, Lean, and customer experience. Therefore, it is quite clear that an organisation’s goals are what will determine the kind of employee training that is best for them.