Are You Losing Business to Poor Training and Development?

12 / Sept / 2012

by Robin Villariza

In the past, management did not understand that there is a connection between human potential and a company’s profit. In a call center it is essential to increase the effectiveness of the selection, recruitment, training and development processes by providing a new business paradigm and tools that increase performance of our call center employees.

teachingThere is a new management theory called human performance management (HPM). HPM provides the foundation for connecting the bottom line to corporations’ human potential value (HPV). Some of the benefits of implementing these tools are reduction of turnover, increased customer service, and increased profits and sales.

The return-on-investment (ROI) for using HPM can be as high as 1,000 percent. An early assessment of a call center showed how systemic and prevalent is the practice of not valuing people as a business asset. While part of the change proposals were focused on technology, process, organizational structures,resources,capital,and the like, none have considered people as a strategic part of the whole plan.

People are vital to an organization, we hear slogan saying: “Bad performers, bad business. No people, no business.” Do the machines run by themselves? Can the process remember how to follow itself?

It is very clear that the main ingredient in any business is people, because without them businesses will not function. This is true whether it is a call center or any business. Managers over the years, have said without hesitation that the most difficult aspect of their job was dealing with people issues. Whether the issue was the motivation and management of people, training employees on new technology, setting up new teams, implementing change, or resolving conflicts, managers dreaded the work.

Even when management did spend time on the people part of business, they were not able to get the kind of performance or behavior changes they really needed to make the business successful.

“What is the cost of dealing with people and the return-on-investment?”

How do we fight and win the war for talents? (recruitment)
How do we invest in and receive a return on intellectual capital? (training)
How do we evaluate employees to create a true learning environment and increase the intellectual capital? (evaluating)

Training to increase conflict resolution skills capabilities. How training,for instance,could have a great impact on a call center business. Will take a look at ROI for training a manager to have more efficient and effective conflict resolution skills when dealing with her employees.

This example two managers,John and Bob. John has a poor relationship with his employees and spends 6 hours per day in conflict with them. John needs management training. Bob has better management skills and spends only about two hours per day resolving people issues in his department. Both earn $50 per hour,approximately $100,000 per year. Bob is more productive compare to John.

Retaining our employees and re-training them to be more efficient and effective would cost less than hiring new ones and training them. A lot of money and time are spent on attrition.
Individual employees can be measured with respect to increases in knowledge, skill,and their commitment to set and reach goals within the scope of the project,on time,and within the budget.

The challenge for managers is to develop and leverage this intellect. Companies with the ability to secure intellectual capital will be more productive,and they will be better able to change in this competitive marketplace,meet customer expectations, and beat competition.