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Importance of Organizational Investment in Job Training

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This report analyzes the importance of organizational investment in job training and suggests changes to enhance employee performance. It discusses the factors affecting employee performance, such as job dissatisfaction, lack of motivation, lack of job-specific skills, and poor attitude. The report also evaluates employee attitudes towards current training programs and recommends implementing an online training solution. The findings highlight the impact of job training on job satisfaction, productivity, and competitive advantage. The report concludes with recommendations for changes to the training program.

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March 17, 2019
Mr. Matthew J. Kogan
Executive Management
ABC Financial, Inc.
1631 Front Street
Wilmington, DE 19805
Dear Mr. Kogan:
Enclosed is the report on “Importance of Organizational Investment in Job Training,”
compiled per your request following the proposal memo I submitted two weeks ago.
This report provides an analysisof employee performance throughout the organization and
seeks to determine how current employee weaknesses can be strengthened through
ongoingonline training. The training procedures in place have beenscrutinized to determine
employee attitudes towards them and establish the necessary changes that must be made to
optimize job training.
Thank you for taking the time toreview this report, and I hope the findings will prove useful
as the organization makes job training decisions in the future.
Sincerely,
(Signature)
Jessica M. Mauck
Portfolio Administrator

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Importance of Organizational Investment in Job Training
Presented to:
Matthew Kogan
Executive Management
ABC Financial, Inc.
Prepared by:
Jessica M. Mauck
Portfolio Administration
March 17, 2019
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Table of Contents
Executive Summary..................................................................................................................iii
Introduction................................................................................................................................1
Background............................................................................................................................1
Purpose...................................................................................................................................1
Overview of Methodology.........................................................................................................1
Primary Research...................................................................................................................2
Secondary Research...............................................................................................................2
Results........................................................................................................................................2
Analysis of Employee Performance.......................................................................................2
Job Dissatisfaction.............................................................................................................3
Lack of Motivation.............................................................................................................3
Lack of Job Specific Skills.................................................................................................3
Poor Attitude......................................................................................................................4
Analysis of Employee Attitudes Towards Current Training Programs.................................4
Evaluation of Employee Training Programs..........................................................................6
Incorporating Employee Input in the Creation of Training Programs...................................7
Impact of Job Training on Employees...................................................................................8
Job Satisfaction..................................................................................................................8
Enhanced Productivity.......................................................................................................8
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Competitive Advantage......................................................................................................9
Online Training Solution…………………………………………………………...………….9
Conclusion..................................................................................................................................9
Recommendations....................................................................................................................10
References................................................................................................................................11
Appendices...............................................................................................................................13
Appendix 1: Employee Survey on Training.........................................................................13
Appendix 2: Steps to Making a High-Impact Employee Training Program........................16

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Table of Figures
Figure 1:Responses to Survey Question 4 2
Figure 2:Responses to Survey Question 1 4
Figure 3:Responses to Survey Question 2 5
Figure 4:Responses to Survey Question 3 5
Figure 5:Responses to Survey Question 5 6
Figure 6:Responses to Survey Question 6 7
Figure 7:Responses to Survey Question 7 7
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iii
Executive Summary
Purpose and method of this report
Job training is a fundamental part of employee recruitment and retention at ABC Financial,
Inc. and the organizational principles governing job training have been applied since its
inceptionten years ago. This report will determine the changes that can be implemented in the
job training program used by the organization to facilitate enhanced employee performance.
Both primary and secondary data sources were employedto collect data used to compile the
report.
Findings and conclusions
From the results obtained through employee questionnaires, employees reported job
dissatisfaction, lack of motivation, lack of job-specific skills (lack of ability), and poor
attitude as the factors that lead to their poor job performance.Negative employee perception
of the current training program used was noted,as well as the need for employee involvement
in creating the training programs, and the necessity for frequent job training reviews.Primary
and secondary research made it evident that the use of online training would be the best
method of training delivery. The implementation of an appropriate job training program
would result in high job satisfaction levels, enhanced productivity, and increased competitive
advantage. It is also identified that there are different reasons that can also be responsible for
job dissatisfaction of the employees. These are lack of motivation, poor attitude and
ineffective managers. If the employees are not at all motivated and interested towards their
job role, then it will be difficult to have the maximum outcome from them and managing
their satisfaction level. Moreover, employees will face issues and challenges in working with
their respective job roles due to the reason that they are emotionally not attached in the
workplace. In addition, if the employees are having poor attitude towards their respective job
roles, then it also it will be difficult to enhance their satisfaction level rather negative vibe
will get emerged. The last reason is the mean spitted managers, which refers to the
managerial roles without getting the insights of the employees. If the managers are more
outcomes oriented and practices autocratic roles, then the probability of emergence of
dissatisfaction of the employees will be more. It is also identified in this report that the
Implementation cost would be $10,000 and the yearly maintenance fee would cost between
$500-$1,000.
Recommendations for changes to training program
Implement a new online job training program and consult employees to establish what
the workforce feels should be included in program.
Review the training program at least once a year to ensure it remains relevant based
on prevailing market conditions.
Evaluate the training program each time changes are made to establish its
effectiveness.
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Introduction
Background
Job training is a fundamental part of employee recruitment and retention at ABC Financial,
Inc., and the organizational principles governing job traininghave been applied since its
launch ten years ago.Due to the dynamic nature of the financial services industry, a need for
the revision to the training principles has emerged andwill ensure that ABC Financials’
training program continues to meet the standardrequirements of employee training. Adequate
training isneeded for the organization to maintain its competitive advantage. The need for
changewas further emphasized in the last staff meeting when management suggestedthat the
organization should consider revising its training procedures in order to increase the ability to
retain employees, clients, and to expand its market niche.Management expressed concern
about stagnatedemployee performance despite the continued application of training methods
in the organization. This observation necessitated the need to review current training
programs and provided research backing the need for a change in the training program.
Organizations must invest as much as possible in employee training.
Purpose
This report will determine the changes that can be implemented in the job training program
used by ABC Financial to facilitate enhanced employee performance. It will also highlight
the necessity of continued investment in the enhancement of job training procedures
implemented within the organization and offer suggestions for optimization.
Overview of Methodology
Gathering data for the compilation of the report required that both primary and secondary
research methods be used. Secondary data provided evidence that reinforced the findings
obtained from primary data collection.
The data collection activities involved:
Collection of information on current training methods used through the
administration of an employee survey.

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Use of secondary data sources to establish the importance of job training to
continued organizational productivity.
The application of data from secondary sources to justify and provide a better
understanding of the information the employees provided in the survey.
The analysis of the data collected provided grounds for evaluating the employee training
programs currently used at ABC Financialandadetermination thatenhanced online training
methodscould be used as a means of maximizing employee performance.
Primary Research
The primary research conducted entailed the administration of a survey to all 300 employees
and consisted of both closed and open-ended questions. All employees were asked to
complete the survey anonymously and given a one-weekperiodbetween administration and
collection dates. The results obtained were used to determine employee perception of the
current training programatABC Financial. This survey provided insight into the changes
thatemployees would propose to enhance the program and the presumed impact of the
changes.
Secondary Research
The secondary data collected for this report was acquired from various peer-reviewed sources
and relevant internet sources on employee training. Thedata was used to validate the
observations made from the primary data collectionand offer further insights on the
importance of job training within the organization. The secondary research not only
rationalized the primary data but also provided grounds upon which conclusions were drawn
and recommendations made.
Results
Analysis of Employee Performance
In the survey administered to the employees, the results obtained indicated that only 4% of
employees believed that they were at their peak performance levels of 9 and 10. Most of the
employees rated their performance between 5 and 8, based on a 1-10 scale where 1
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represented the worst performance&10 represented the best performance.10% of employees
indicated that they thought their performance level was between 2and 4, poor performanceon
the same scale. See the figure below for details.
Figure 1
Responses to Survey Question 4
Rating
Scale
1 2 3 4 5 6 7 8 9 10
No. of
Employees
1 8 12 10 87 65 79 25 7 6
10.33% 85.33% 4.33%
Assuming the answers given by employees were not biased and anonymity was applied in the
administration and collection of the questionnaires, managementwas justified intheir concerns
about employee performance.Answers received from the employees that rated their
performance between 1 and 5indicatedthe reasons behind theirpoor or average performance
were:
Job dissatisfaction
Lack of motivation
Lack of job-specific skills (lack of ability)
Poor attitude
Job Dissatisfaction
The term job satisfaction refers to the level of employee contentedness with their jobs and
determines if employees like or dislike various components of their job (Lu, Zhao, & While,
2019).Researchers have also confirmed that the level of employee job satisfaction can be
affected byaffective and cognitive needs, both of which must be satisfied to elicit high job
satisfaction levels (Jiang &Lavaysse, 2018). Therefore, when job dissatisfaction is exhibited
among employees, employers must strive to determinethe cognitive and affective employee
needs that are not being met and seek to remedy the problem. High job dissatisfaction levels
lower productivity among employees which results in reduced organizational productivity
(Afshar &Doosti, 2016).
Lack of Motivation
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Employee motivation is critical to organizational performance because it is directly and
proportionally related to the productivity levels of the employees and the organization
(Lazaroiu, 2015).Employers must motivate their employees if they seek to maintain high
productivity levels within their organizations (Lazaroiu, 2015). The lack of motivation among
employees results in stagnated employee development, job dissatisfaction as well as reduced
employee efficiency and commitment (Lazaroiu, 2015).Low employeemotivation levels at
ABC Financial is a red flag for management. Management should respond quickly to this
issue to mitigate further detrimental effects.
Lack of Job Specific Skills
Maximum job productivity can only be realized if the right people are matched with the right
jobs. This principle is what Persch and Cleary (2013) refer to as smart hiring, which they
deem as the cornerstone of job performance.The authorsexplain, factors that impact employee
performance abilities are skill match, attitude match, cognitive ability, interests, and
personality structure.The responses obtained from the survey, make it evident that
management mustconsider the application of Persch’s principle in the hiring process. This
would helpreduce the lack of job-specific skills and determine how issues can be corrected
through employee training.
Poor Attitude
Employee attitudes towards their work can take a negative or positive form (Ashkanasy,
Zerbe, & Hartel, 2016). Employee attitudes are the psychological state of mind that
shapestheir perception of work and determines how they behave when performing their job
(Ashkanasy et al., 2016). Bad attitudes negatively impact the execution of daily tasks because
employees are often agitated by minor problems and leads to substandard completion of tasks
(Ashkanasy et al., 2016).Addressing poor employee attitudes is key to positively impacting
employee performance and enhancing organizational productivity.Managementneeds to
determine the root of bad attitudes among employees and work towards remedying the issue.
Analysis of Employee Attitudes Towards Current Training
Programs
Job dissatisfaction refers to the lack of motivation and interests of the employees towards
their job role. This refers to the extent to which the employees are not having positive vibe
towards their job role. Lack of motivation refers to the lack of interest of the employees in
accomplishing their given objectives. Lack of specific job skills refers to the extent to which
the employees are incompetent in working out in a specific job role. Poor attitude refers to

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the negative attitude of the employees in their workplace and towards other internal
stakeholders.
The analysis of employee attitudes regarding the current training programs was conducted
based on the responses received for questions 1, 2, 3, and 5 (see Appendix 1). The answers to
question 1 indicated that the bulk of the employees had been working there for less than one
year up to five years. Only 20% of the employees had been working in the organization for
more than five years. See the table below for exact statistics.
Figure 2
Reponses to Survey Question 1
Responses to question 2
indicated that most of
the employees
remember receiving training when they initially joined the firm, whereas a small percentage
did not recall being trained.There were also employees that were not sure whether they
received training upon hiring. See the statistics below.
Figure 3
Responses to Survey Question 2
In question three, the responses received indicated that 60% of employees were unsure of
whether they had undergone further training apart from their initial training. 28% indicated
80%
20%
86.67%
2.67%
10.67%
Employment Duration No. of Employees
Less than a year 70
1-3 years 105
3-5 years 65
5-7 years 45
7-10 years 15
Survey Response No. of Employees
Yes 260
No 32
Not Sure 8
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that they were unaware of any further training that may have taken place. Only 12% of the
employees stated that they were sure that they had undergone additional training while at the
organization.
Figure 4
Responses to Survey Question 3
Finally, the responses to question 5 indicated that most employeeswere unsure whether the
training program implemented was beneficial. Very few were confident that the training
program was useful to the employees.
Figure 5
12%
28%
60%
Yes
No
Not Sure
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Responses to Survey Question 5
35%
20%
45% Yes
No
Not Sure
The data provided in the figures above, shows that employees at ABC Financial either do not
understand the training program that is already in place, or the structure of the program is so
vague that most employees tend not to be aware of it.It is essential that the organization’s
management focus on redefining their training program to increase its visibility and value
among organizational employees.
Employee training provides learning opportunities that facilitate the improvement of their
knowledge and skills as a means of enhancing job performance (Barrett et al., 2015). Good
employee training programs are essential within organizations because they do not only
assure quality and maximized production but also high employee retention (Barrett et al.,
2015). Other than hiring top talent in the market, organizations must strive to keep existing
employees. This is an objective that can be realized through the implementation of proper
training programs (Barrett et al., 2015).Therefore, for ABC Financial to create an effective
training program, management must determine the desired impact of the program on the
business, establish the current skill gaps, layer the most appropriate training methods,and
evaluate the effectiveness of the implemented program as well as create means of sustaining
the program (AllenComm", 2018). See appendix 2 for a simplified representation.
Evaluation ofEmployee Training Programs
Answers obtained from survey question 6 indicated that many employees felt that it was
necessary forABC Financialreview its training programs at least once a year. See the table
on the following page.

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Figure 6
Responses to Survey Question 6
Response Option No. of Employees
Every six months (biannually) 190
Annually 80
Biennially (every two years) 23
Every five years 6
Every seven to ten years 1
Consistent periodic reviews of employee training programs areessential because it allows the
organization to update training needs based on prevailing market trends (J. Kirkpatrick&W.
Kirkpatrick, 2016). The business environment has become increasingly dynamic due to the
rapid technological revolution, necessitating the need for organizations to structure
themselves to accommodate the said dynamism (Cascio, 2015). Thus, the employee
determination indicating that ABC Financial should review its training programs periodically,
in periods that do not exceed 12 months, is reasonable and is also supported by research. The
consistent review of training programs will ensure that ABC Financial remedies training gaps
exhibited within the current job training program and facilitate the implementation of better
training programs that will suit employee needs and have an impact on the productivity of the
organization (J. Kirkpatrick&W. Kirkpatrick, 2016).
Incorporating Employee Input in the Creation of Training
Programs
Statistics obtained from the data collected indicate that most employees are either unsure of
their involvement in the creation of training programs or think thatthe management does not
include them in. The survey results are highlighted below and show the perception of
employees in their involvement in the creation of training programs within ABC Financial.
Figure 7
Responses to Survey Question 7
90%
10%
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3%
12%
15%
31%
39%
Yes
Maybe
Sometimes
Not Sure
Never
The enhancement of the training programs at ABC Financialrequires that management
consider involving the organization’s employees when making decisions on the contents of
the programs. Training programs are created to facilitate employee betterment. Thus, they
should be tailored in a manner that allows them to meet employee needs, a goal that can only
be attained if employees are involved in making decisions concerning job training programs
(Hanaysha & Tahir, 2016).Involving employees in the decision-making process makes them
feel like a valued organizational memberand creates a sense of empowerment.It also
increases a sense of responsibility regarding training programs, program success within the
organization, and boosts employee motivation and morale (Nielsen & Randall, 2012).
Impact of Job Training on Employees
The data collected from the responses that the employees gave for questions 8, 9, and 10
indicated that the employees of ABC Financial believe that training should be an ongoing
process that includes initial training upon being hired. Among the points highlighted on the
impact of job training on employees are job satisfaction, enhanced productivity, and
competitive advantage, as discussed below.
Job Satisfaction
Lee H.,Pitt‐Catsouphes, and Lee J. (2014), indicate that studies have recorded that high job
satisfaction levels mitigate the chances of employee turnover.Memon, Salleh and Baharom
(2016)state that the employees leave their current jobs for new ones and can be voluntary or
involuntary. Regardless, employee turnover is a critical issue in the current business
environment and results in higher training costs and reduced morale among employees.In
order to reduce the high turnover rates exhibited among employees, organizations can
implement job training programs as a means of boosting job satisfaction(Percival, Cozzarin,
& Formaneck, 2013). The addition of employee training within the organization makes
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employees feel valued and increases their engagement in the workplace(Lee et al., 2014). Job
training also enhances employee performance and in turn reduces turnover intention (Saeed et
al., 2014). Job training allows employees to acquire additionalskills, knowledge, and
competencies in their areas of expertise, resulting in their increased capability to compete for
job performance rewards (Tooksoon, 2011), a factor that elicits jobs satisfaction and
facilitates employee retention.
Enhanced Productivity
Job training within organizations is directly proportional to enhanced productivityamong
members of the workforce. The rapid technological revolution in the business sector has
resulted in the establishment of tech-based training programs (Mozael, 2015). Thus, for
employees to remain highly productive and relevant in a changing business sector, it is
critical that organizations invest in continuous training. According to Memon et al. (2016),
customized training would allow employees to perform more efficiently and effectively. High
employee productivity equals high organizational productivity and a goal that corporate
management should always seek to attain (Mozael, 2015).
Competitive Advantage
An organizations success in gaining and maintaining a competitive advantage in its market
niche depends on the productivity of its employees. It is established that job training
positively impacts employee performance and productivity through skill and competency
enhancement (De Grip & Sauermann, 2015), job training becomes critical to the
organization’s level of competitive advantage. Job training is thought to increase employees’
confidence as they execute their jobs and helps give employees abetter understanding of their
tasks (Almeida, Behrman, & Robalino, 2012). Confident task execution among members of
an organization’s workforce results in enhanced productivity and performance levels that
allow an organization to maintain its competitive advantage (Konings & Vanormelingen,
2015).
Online Training Solution
Benefits

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It is difficult to have staff members out of the office for an entire day and is costly to
reimburse travel expenses associated with out of office training. The use of online training is
an affordable and effective platform for initial and ongoing training. Training programs can
assess current organizational weaknesses and use employee feedback to tailor individualized
programs based on these needs (Skillsoft, 2019). This type of training program is updated
daily to include important changes that occur in the investment field and alleviates a need for
management to constantly monitor market trends.
Cost of Online Training
Implementation cost would be $10,000 and the yearly maintenance fee would cost between
$500-$1,000. The cost would be easily recovered through employee retention. The average
cost to train a new employee is $1,200 (Taylor, 2017)and the cost to retain an existing
employee is minimal. According to Dailpay (2017), the average yearly employee turnover
rate for the financial services industry is 1.7%. In contrast, ABC Financial has an exceedingly
highturnover rate of 20%.Training has been linked to reduced turnover and increased
employee satisfaction. Organizations with trained employees have an estimated decrease of
70% in the turnover rate according to Business and Legal Resources (2019). This positive
change in employee retention will more than cover the implementation and ongoing cost of
the proposed program.
Conclusion
The analysis of the data indicates that ABC Financial, Inc. needs to upgrade the training
programs in place, not only because the employees seem to be unaware or unsure of their
existence but also because it appears that most employees within the organization feel that
there are not using their full potential on the job. Implementation of a new online training
program at ABC Financial is critical to the continued success of the organization and it will
allow the improvement of job satisfaction levels, enhance productivity and allow the
organization to maintain and gain a competitive advantage in the market. The cost of
implementing and maintain an online training program with mitigated with reduced employee
turnover.
Recommendations
Implement a new job online training program and have management consult
employees in order to establish what the workforce feels should be included in the
program.
Review the training program at least once a year to ensure it remains relevant based
on prevailing market conditions.
Evaluate the training program each time changes are made to establish its
effectiveness.
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References
Afshar, H. S., & Doosti, M. (2016). Investigating the Impact of Job
Satisfaction/Dissatisfaction on Iranian English Teachers' Job Performance. Iranian
Journal of Language Teaching Research, 4(1), 97-115.
Retrieved fromhttps://eric-ed-gov.ezproxy.umuc.edu/?id=EJ1127427
AllenComm. (2018). What is Employee Training & Development? Retrieved from
https://www.allencomm.com/what-is-employee-training-development/
Almeida, R., Behrman, J., & Robalino, D. (2012). The right skills for the job? Rethinking
training policies for workers. Retrieved from: https://openknowledge.worldbank.org/
Ashkanasy, N., Zerbe, W., & Hartel, C. (2016). Managing emotions in the workplace. New
York, NY: Routledge.
Barrett, A. D., Chamberlain, P., Galindo, A. L., Moore, J. R., Thomas, A., & Bacon, J.
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(2015). U.S. Patent Application No. 14/639,030.
Retrieved from: https://patents.google.com/patent/US20150310752A1/en
Business & Legal Resources. (2019). Strategies for retaining employees and minimizing
turnover. Retrieved from:https://hr.blr.com/whitepapers/Staffing-Training/Employee-
Turnover/Strategies-for-Retaining-Employees-and-Minimizing-
Cascio, W. (2015). Managing human resources. New York, NY: McGraw-Hill.
Dailpay. (2017). What is the average employee retention by industry?Retrieved from:
https://business.dailypay.com/blog/employee-retention-rate
De Grip, A., & Sauermann, J. (2013). The effect of training on productivity: The transfer of
on-the-job training from the perspective of economics. Educational Research Review,
8, 28-36. https://doi.org/10.1016/j.edurev.2012.05.005
Hanaysha, J., & Tahir, P. R. (2016). Examining the effects of employee empowerment,
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Sciences, 219, 272-282. https://doi.org/10.1016/j.sbspro.2016.05.016
Jiang, L., & Lavaysse, L. M. (2018). Cognitive and affective job insecurity: A meta-analysis
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497.https://doi.org/10.1162/REST_a_00460
Lazaroiu, G. (2015). Work Motivation and Organizational Behavior. Contemporary Readings
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direct=true&db=asn&AN=111280613&site=eds-live&scope=site
Lee, H., McNamara, T. K., Pitt‐Catsouphes, M., & Lee, J. (2014). Opportunities to improve
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Lu, H., Zhao, Y., & While, A. (2019). Job satisfaction among hospital nurses: a literature
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Mozael, B. M., (2015). Impact of training and development programs on employee
performance. International Journal of Scientific and Research Publications, 5(11),
38-42.
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Appendices
Appendix 1: Employee Survey on Training
1. How long have you worked for ABC Financial, Inc.?
a) Less than a year
b) 1-3 years
c) 3-5 years
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d) 5-7 years
e) 7-10 years
2. Did you receive employee training when you initially joined the organization?
a) Yes
b) No
c) Not sure
3. Have you undergone any further employee training?
a) Yes
b) No
c) Not sure
4. How would you rate your current performance within the organization on a scale of 1-
10 (with 10 being the best and 1 the worst)? Explain your answer.
___________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
5. Do you think ABC Financial, Inc. has implemented beneficial training programs?
a) Yes
b) No
c) Not sure
6. How often do you think management should review the training programs in place?
a) Every six months (biannually)
b) Annually
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c) Biennially (every two years)
d) Every five years
e) Every seven to ten years
7. Does management incorporate employee input in the creation of their training
programs?
a) Yes
b) Maybe
c) Sometimes
d) Not sure
e) Never
8. At what stages of employment do you think employee training is essential?
a) Induction
b) Early stages of employment after induction
c) 2-5 years on the job
d) More than 5 years on the job
e) All the above
9. Why do you think employee training is important?
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10. If the employee training programs at ABC Financial, Inc. were altered, how do you
think that would affect the employees?
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Appendix 2: Steps to making a High-Impact Employee Training
Program
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