Small Business

Can Employee Training and Incentives Improve Quality?

Our article features the benefits of both cross-functional integration and transparency with that of external partners, mainly suppliers. Extensive research has indicated that when organisations ensure the proper training of their supplier, they generally tend to reap the financial benefits from an improvement in their overall quality efforts. Effective training such as managing remote teams training course can readily help suppliers to better understand what the impacts of defects and other setbacks such as delays tend to have on their customers. This, therefore, results in customer focus being improved which in turn increases the financial benefits.

In addition, these same practices such as the transparency ideas and a proper understanding of quality should also be the same for the many employees of the organisation. As such, our article is geared toward the financial aspect where we will closely examine a common relationship between the training of employees and incentives.

Training Employees and Financial Value

Programs are aimed at not only developing competency but also ensuring that all employees fully understand their initial role as it applies to quality for potential customers as well as aiding to develop a quality-focused culture. As such, employees were asked to state if they had received any prior training dedicated to quality. However, most organisations did not currently run any such training. As of recent times, around 43% were now investing in such programmes as compared to 2013 when only around 32% focused on quality.

Who Should Get Training?

The most common debate has been focused around who exactly should be trained. Around 56% of the organisations who responded indicated that training should be provided for those who were solely involved in activities which revolved around quality, and should be available directly or even externally. The other 44% suggested that all employees within any organisation should receive training with the hopes that the quality culture would be established strongly within the organisation. In order to understand where the allocated training resources should be focused, an analysis was conducted between the organisation’s financial benefits and the training offered to the employees.

The typical thing to do is increase the training so that all employees could not only develop but share their perspectives and create the quality culture. However, further analysis has indicated that there is a financial drop in benefits for those who have offered proper quality training for all the employees of the organisation. In addition, the greatest increase actually comes from offering training only to the staff who are involved in quality actions in the company.

What Training Topics Matter

Most organisations tend to focus on the fundamentals of quality, ISO standards, the tools of quality, the principles of quality management and auditing. Some organisations readily include concepts which revolve around the value of customers such as their experience and the Net Promoter Score (NPS). This is done in order to understand which training programme results in an increase in the financial benefits due to quality. Another analysis was carried out against the financial gain because of quality and the initial training provided.

It was discovered that the various types of training did indeed improve the financial benefits. And, those who focused on the customer with the inclusion of Six Sigma, NPS, Lean and the overall customer experience reaped higher rewards. In addition, some organisations became competitive as they enhanced their brand image and focused on the customer as they utilised the quality concepts, making them more competitive.

As we conclude our article, it must be stressed that organisations who are indeed committed to quality improvement, as well as helping their employees understand their part in achieving the culture, reaped the highest benefits. However, organisations should still consider their efforts before adding incentives, the training types and even which employees should be trained. In addition, each organisation should always re-examine their initial goals and then implement quality training programmes to suit their overall needs with their valued customers in mind.

Show More

Related Articles

Close