benefitted from training programs.
Educating employees may lead to problems retaining them later
For many company presidents, training employees is a mandatory element of being
successful – they must keep pace with the changing technology and information.
The risk of losing a valued executive is always present, but many say it’s a
far greater risk not to offer training.
“You have a choice – to train or not to train,” said CAS America President Joseph Cannon. “There’s a risk on both sides, but it’s a bigger risk not to train. People want to know about career paths and if you don’t offer career paths and opportunities to train and learn, they’ll go on to better opportunities.”
According to the University Continuing Education Association, most training dollars are spent on professionals, managers and executives, said John Cronin, CEO of the Rhode Island Manufacturing Extension Services. Nationwide, organizations spent $54 billion in 2002 with about 36 percent spent on hourly workers.
“If you don’t invest in executive training, you lose good people at a greater rate than investors in executive training,” he said. “The two biggest factors in retention are pay and training and education. Companies who invest in professional development receive greater employee loyalty and retain their talent.”
CAS America, based in East Greenwich, offers executive and worker training programs through RIMES, Cannon said. Small businesses like his are still expected to treat employees like a large business would, so education is important.
“The people in the company have to be educated. If you don’t train your work force, you can’t grow your business,” he said. “The risk here is great but in a small business you’re required to fulfill all of the functions of a big business.”
Executive education is only a risk for companies that don’t provide complete professional development, Cronin said.
“(For example), if the executive training is not part of a comprehensive leadership development program where contributions, incentives and creativity are respected, then executive training is more risky,” he said.
For Cannon, the decision to educate employees is one that he makes with the acknowledgement of risk.
“Training is an investment you make in people, and it’s not easy to measure (in dollars). There are costs and some risks, and sometimes people leave once they get where they want to go,” he said. “There is always a potential for someone to go work for your competitor and use (the education) against you. But what we’re doing here isn’t rocket science.”
CAS gives regular tours, even to companies it considers to be competitors, Cannon said, adding that all he can do is have confidence is his work force.
“I’ve been in human resources for almost 20 years and I have mixed feelings,” about losing executives, said Nancy Roderick, human resources manager for Concordia Manufacturing Company in West Warwick. “You’ve allowed for them to have a better opportunity, so you’re very happy for them, but at the same time, it’s sad because you’re losing a good person. It’s a natural progression, I think.”
Some executives, no matter how much knowledge their employer supplies them with, maintain their loyalty and never leave, Roderick said. Others take what they can out of a job and leave, no matter how well they are treated.
“We’re open and flexible, and we treat our employees so well and give them a lot of freedom,” which helps in retention, she said. “I think because we’re like that, (employees) have great loyalty.”
Roderick said that Randy Spencer, Concordia’s president and CEO, would never consider not offering executive education. The textile manufacturer offered a training program through a federal grant two years ago, has done programs through RIMES, and also held a 10-week professional management training program for upper level executives on-site.
“You need to constantly train your employees, no matter what their level is,” Roderick said. “With the changing working climate, you need to be on top of your game.”
“Executive training is as essential as any other kind of training,” Cannon said. “Everybody’s an essential person if you run a lean company, and I do. Everyone needs to do their job better and more efficiently.”
