Human Resource Management: Employee Training and Profit Analysis

This essay explores the impact of employee training and development programs on organizational profit, considering budgetary constraints and the perspective of TechnologyOne, an Australian software company. It discusses how training enhances employee skills, fosters innovation, improves performance, and promotes teamwork, ultimately leading to increased profitability. The essay also addresses budgetary considerations such as technology development and employee attrition, highlighting the difficulty in measuring the exact return on investment. A personal reflection on the author's experience at TechnologyOne reveals challenges in managing employee attrition despite effective training programs. The author recommends considering employees' personal aspirations, such as financial benefits, to reduce attrition rates. The essay concludes that while human resource management and training programs offer numerous advantages, organizations must address budgetary issues and employee needs to maximize their effectiveness and profitability.

Running head: HUMAN RESOURCE MANAGEMENT
Human resource management
Name of the student
Name of the university
Author note

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Introduction
In the current business scenario, it is important for the business organizations to have
trained and equipped employees in place. This is due to the reason that in the present competitive
business environment, one of the major sources of the business organizations to gain competitive
advantages is having skilled and trained employees (Nda and Fard 2013). In this case, training
and development program plays an important and effective role in enhancing the skill sets of the
employees. However, initiating the process of training and development is also having number of
factors to be considered such as the cost involved. Thus, proper consideration of the relevant
factors in implementing the training and development program will help in increasing the
organizational profit.
This essay will discuss about the major impacts of the training and development program
on the organizational profit. In addition, the budgetary constraints such as cost involved in
sourcing the infrastructure for training facilities will also be discussed in this report.
Furthermore, these factors will also be evaluated from the perspective of my organization,
TechnologyOne. In accordance to the discussed factors, a few changes will also be proposed.
Impact of employee training and development on organizational profit
As stated in the given article, Jenny Dearborn stated that one of the major impacts of the
initiation of the employee training and development program for the organization is the increase
in the chance of generation of innovative ideas. This is due to the reason that employee training
and development program will enable the employees to have more skill sets and expertise in
accordance to the present business requirement. In addition, it is also stated by Jenny Dearborn
that initiation of employee training and development program will further help the employees to

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enhance their effectiveness by the means of learning scope. Thus, the more will be the skill set
and expertise of the employees in their workplace, the more they will be able to generate
innovative ideas that will further enhance the organizational competitiveness and profit in the
market (Sung and Choi 2014).
However, on the other factors also that helps the organizations in generating profit from
the initiation of the employee training and development program. One of these factors is
enhancing the employee performance. This is due to the reason that if the employees are being
given proper training and development facilities in their workplace, then they will be able to
further enhance their organizational effectiveness. According to Elnaga and Imran (2013), with
the help of the employee training and development program, employees will be able to cope up
with the current business environment and factors effectively. This is due to the reason that,
according to the authors, employee training and development program are being designed in
accordance to the current organizational requirement. Thus, according to the authors, employees
will always stay updated with the change in business scenario. Thus, the more updated will be
the skill sets of the employees, the more will be their performance and effectiveness in their
workplace. Organizations can enhance their profitability if they have properly skilled and
updated workforce in place.
According to Jehanzeb and Bashir (2013), another major impact on the organizational
profit with the help of employee training and development is enhancement of the team working
and team effectiveness among the employees. This is due to the reason that training and
development program for the employees also covers the team working skills of them. The
authors have also stated that in the current business scenario, team work is being given major
focus and concentration. Thus, covering this aspect in the training and development program for

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the employees can help the organization in promoting team culture. This will also help the
organization in enhancing the coordination and cooperation among the internal stakeholders.
According to the authors, the more will be the level of coordination and cooperation among the
internal stakeholders, the more will be the organizational effectiveness. This will further help the
organizations to enhance their performance and profitability.
Budgetary considerations in human resources
Initiating strategies in regards to the human resource management involves budgetary
considerations. This is due to the reason that human resource management involves different
elements and factors that are having the requirement of investment. One of the major budgetary
considerations in the human resource management is developing the technology used in the
organization (Keep 2014). This is due to the reason that in the current approach of training and
development program, employees are majorly being offered digital mode of learning. This helps
the employees to get technologically equipped and trained in their learning process. In this case,
a certain cost is required in developing the technologies for the employees. In the current time,
the cost for digitizing the training facilities is also increasing due to the rapid change and
evolution in the technological sector. For instance, employees are now being given training
through virtual mediums. This was not present in the earlier training approach. Thus, the extra
cost is added in the cotemporary training programs.
On the other hand, calculating of cost is one of the complex tasks for the business
organizations. This is due to the reason that it is difficult for the organizations to measure the
exact return on investment from the initiation of the training and development facilities. It
depends to the extent of effective performance by the employees in the organization. With the

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help of the employee training and development program, performance and effectiveness of the
employees can be enhanced but it cannot be measured about exact improvement of the employee
performance. Thus, a cost is associated with the training program for the organization. The cost
of time and investment will be more for the organization if the performance of the employees
cannot meet the desired level. On the other hand, if the performance of the employees exceeds
the desired level then the cost of organization will be less and return on investment will be more.
Thus, it can be concluded that it is important for the business organizations to have contingency
source of funds in order to adjust with the uncertain cost associated with the employee training
and development program.
Another major cost that is associated with the employee training and development
program is the cost of employee attrition. This is due to the reason that in the given article it is
stated that in the current time, employees does not see their career being developed by staying in
single organization. They have the objective of enhancing their skill sets and looking for new job
opportunities in order to develop their career. Thus, the current business organizations also have
the provision of involvement of cost of employee attrition (Rahman and Nas 2013). With the
help of the employee training and development program, the skill sets of the employees will get
enhanced and this increases the chance of changing job for the employees. Thus, the
contemporary business organizations are facing the risk of attrition of employees. This will lead
to the loss of investment on providing training for the employees along with loss of human
resources for the organizations.
Thus it can be concluded that it is difficult to measure the budget for the employee
training and development program. It is difficult due to the reason that enhancement of the
employee performance after the implementation of the training and development program is

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uncertain and it is depending on the individual aspects of the employees. It is important for the
contemporary business organizations to have contingency reserve in order to initiate the process
of employee training and development program. This reserve can help the organizations in
adjusting with the potential cost in the training program.
Personal reflection
For last two years I am working with TechnologyOne, Australia. They are one of the
leading software companies in the Australian region and are having extensively strategy of
human resource management. One of the major human resource management strategies being
identified by me in this organization is the involving the entire organizational levels in the
training program. This is being done in order to engage the top and lower level hierarchy in the
process. The major advantage that is being gained from this approach is effective relationship
and communication between the lower and upper management level. Issues and challenges with
the lower level employees are being effectively mitigated and identified by the upper level
management. This also ensures that the training program is in accordance to the actual need and
requirement of the employees.
However, in this case, one of the major challenges being faced by the upper level
managers is regulating the attrition rate of the employees. This is due to the reason that upper
level managers can identify the challenges and issues faced by the employees in their training
process but they are having no control over the reasons for leaving the organization by the
employees. Thus, it is identified by me that though the training and development process is being
initiated in accordance to the requirement of the employees, but the level of attrition rate is not

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reducing. This is denoting that employees are having different reasons to leave their organization
apart from just having being trained and equipped.
It is recommended that upper level managers in TechnologyOne should also consider the
personal attributes of the employees in designing the training and development process. This is
due to the reason that in major cases it is seen by me that employees are leaving the company for
personal reasons and not for the organizational reasons. Thus, it is being identified that though
the training and development program is effective and efficient enough in enhancing the skill
sets of the employees but it is not meeting the personal aspirations of them. In accordance to this
factor, it is recommended that the personal aspirations such as the expected earnings of the
employees should also be considered by the managers. According to me, if the employees can be
provided with the best in the industry financial benefits, then the rate of the employee attrition
can get reduced. This is due to the fact that employees majorly leave their existing workplace for
better pay structure. If they are being offered with the best in the industry structure, then
employees will be less motivated in leaving the organizations.
Conclusion
It is concluded that there are number of advantages that can be gained by the business
organizations from the initiation of the human resource management including the employee
training and development program. This essay discussed about number of advantages of
initiating employee training and development program that can further help the organizations in
increasing their profitability. This essay also discussed about some major budget related issues
being faced by the organizations in initiating employee training and development program. The
identified factors are reflected on the basis of my own working experience in TechnologyOne.

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Reference
Elnaga, A. and Imran, A., 2013. The effect of training on employee performance. European
Journal of Business and Management, 5(4), pp.137-147.
Jehanzeb, K. and Bashir, N.A., 2013. Training and development program and its benefits to
employee and organization: A conceptual study. European Journal of business and
management, 5(2).
Keep, E., 2014. Corporate training strategies: the vital component?. New Perspectives, pp.109-
125.
Nda, M.M. and Fard, R.Y., 2013. The impact of employee training and development on
employee productivity. Global Journal of Commerce and Management Perspective, 2(6), pp.91-
93.
Rahman, W. and Nas, Z., 2013. Employee development and turnover intention: theory
validation. European journal of training and development, 37(6), pp.564-579.
Sung, S.Y. and Choi, J.N., 2014. Do organizations spend wisely on employees? Effects of
training and development investments on learning and innovation in organizations. Journal of
organizational behavior, 35(3), pp.393-412.