Making On-the-Job Training Succeed

Factors which determine a successful program

By Mary Bresnahan
the Bresnahan Group

Most people are familiar with the term "on-the-job training" (OJT). It means pretty much what it says -- learning the job or task while doing it. It is usually taught by someone who has also done the job or task.

OJT is something we have all experienced in a variety of environments throughout our lives. It includes things like learning to ride a bicycle as well as learning to do a job at work. Most of us can all relate stories of learning by using this method. While some are success stories, others are stories of frustration and grief, probably for both the trainee and the trainer.

Underlying OJT is the theory that a person who has performed a task he can teach it to someone else. This is not always true. There are good technicians and good teachers, but these traits are not always found in the same person.

The success of this type of training rests on several factors: the ability of the person doing the training, the organization of the training, the consistency of the training program, and the pertinence of the information.

Limitations of Typical OJT Programs

Most of the time, OJT is done informally. Consequently, it is haphazard at best. The trainees pick up whatever they can, usually in a trial and error manner. This usually makes the training process lengthy and costly (errors, scrap, lack of carryover to the job). Often the trainer's bad habits are picked up along with the good ones. No common work standards are established.

Employers spend much time talking about employee "attitudes." Using informal OJT can undermine the trainee's confidence if both the trainer and trainee attribute errors to the trainee.

According to the Center for Management Services, a cycle of blame is set up, even though upon closer examination, the errors usually found not to be the trainee's fault. The center study points out that 95 percent of OJT is done so poorly that the job suffers measurably (Training, June, 1993).

As a consequence, morale is lowered and probably never fully recovers from the effects of the initial training experiences. Overall, informal OJT is not considered to be a highly effective method of training.

Return on Investment

Most companies view training as a "nice to have" but not a must, because training and education have traditionally been viewed as things that cannot be measured in dollars. Consequently, many companies have not made it a part of the strategic business plan, nor do they know how to calculate its return on investment (ROI). In today's competitive environment, greater emphasis is placed on demonstrating the worth of training and showing its relationship to the bottom line.

The results of training are often difficult to measure. They are overshadowed by a number of more tangible factors, such as the hours it takes to produce a finished product.

Small companies have typically taken the position that they are too busy with production to train. Additionally, they are unsure of the payoffs if they have never done it, never measured it, and no one has championed or been responsible for it. For many, the perception is that "if I train the employees, they will leave." It is true that they may leave, but some may leave anyway! Statistics show that the trained employee is more likely to stay because of career growth potential within the company and a perception of management's interest in the employees.

Many companies use training as a "perk" for employees who have done good work. Once the employees have gone through the training and return to work, however, they may find that no avenues exist to apply what has been learned. Employees are disappointed that they cannot use the new knowledge and skills. Of course, in this situation, no ROI results.

Some managers and workers perceive that if training is applied to problems, all will be made right. Training is not a quick-fix. "Cookie-cutter" training does not resolve problems that have deeper roots, nor is it a short-term solution. Effective training, to be successful, must be a long-term commitment. The results and ROI can only be measured over time.

Long-term training must be developed to fit into the company's business plan. Therefore, like the business plan, it requires careful organization and development. Based on this premise, it follows that all employees should be included in a company-wide training program. This includes everybody from the president to the person in the lowest pay category. It needs to be championed by the president to persons in the lowest pay category.

Training needs to be championed by management (because everyone knows that if they do not subscribe to it, it is not important) and a representative group made up of employees from all areas of the company. As part of this structure, someone must be designated as responsible for making sure it happens. If no one is responsible, nothing will happen (just like any other project assignment).

With these premises established, two ways of measuring the ROI of training can be examined. Both methods have valuable features, so one or both may be chosen.

Measurements for ROI

The first measurement establishes the Cost of Non-Conformance (CONC). Developed by Guy Wallace of Svenson & Wallace, Inc., Naperville, IL it refers directly to the number of errors or nonconformances in the production process. The errors reflect current performance levels and potential value of improved performance. In other words, it is a "before and after" picture.

The following formula calculates the meaning of the difference between the current performance and the improved performance levels:

Number of Performers X Salary X Work Proficiency % = Performance Value

5 X $27,090 X 100% = Potential Value (PV), $135,450

5 X $27,090 X 60% = Actual Value (AV), $81,270

Using the above figures for one year, the CONC is $54,180 (the difference between the PV and AV). If the above figures are projected over two years, the results are as follows:
100% performance = $270,900
60% performance = $162,540

The CONC for two years is $108,360

On an even smaller scale, if this ROI were applied to an employee whose work proficiency increases 40%, the employee's value would increase by $10,836! The CONC would probably far exceed the company's costs for training.

The second method of measuring ROI is simpler but also effective. It is calculated by tracking items that are important to the company, some of which the firm may already be tracking. These cost factors could be scrap, rework, overtime, returns, cycle time, employee turnover, and absenteeism.

Once a record is established on the items of importance, it is easy to see the differences in a before and after comparison. While many of these items are not solely affected by training, training is a factor in each one.

With such an approach, the total of these improved production dollars as a result of training is subtracted from the original negative production costs. For example, just the decreased scrap or rework costs might exceed the cost of the training provided. Though the results cannot be attributed solely to training, training may play a significant part in cost reduction.

If employees feel their work and input is valued by his supervisors or managers, they will make the effort to produce a high quality product. This simple effort is the result of an employer's interest in training an employees, and giving the employees a place and expectation to apply what has been learned. This affects absenteeism, safety, production, quality and maybe worker's earnings. This may provide a big payoff for a small investment.

Setting Up a Training Program

Starting an effective training program that yields results and justifies the investment made takes planning and discipline. The following steps explain you through the process.

Define the Training Goal.

It should be clear and specific, stating the end results to be achieve. It should relate directly to the business plan, addressing such areas as what, when, where, who, why and how.

Choose the Key Person Responsible for Training.

This person will coordinate the various facets of training, such as scheduling, enrollment, tracking progress, delivering any tests and evaluating results for ROI. This person, along with senior management, supports the trainer and the trainee before, during and after the training. This person needs to be directly involved in the planning and implementation of the training program.

Determine Who the Trainees Are.

Training should target those who have been with the company for at least six months. The company must ensure that those eligible are worthy of the investment in time and money. Trainees who demonstrates curiosity and eagerness to learn new things are appropriate choices. Past experience and career goals, especially for technical training, must be considered. Does this training fit with the trainee's plans for the future?

Select the Trainer(s).

The trainer does not have to be the best at this trade in the company, but the trainer needs to have solid skills. The trainer must have good people and communication skills and be well-regarded. Companies might be well advised to provide trainers with some type of "train the trainer" preparation before putting them into what may be a stressful and burdensome situation. (See the following explanations.)

Lighten the Production Responsibilities of the Trainer and Trainee.

If this may be difficult because of production demands, the training might be scheduled before or after regular shift hours or during lunch.

If specific times for training cannot be set aside, thereby providing some structure to the training, the risk is that the training not taking place. Companies then find that they fall back into the old routines of haphazard training. Consequently, chances of success in accomplishing goals will be decreased. Actually doing the training requires commitment and tenacity.

Have Resources Available.

A meeting room or office where the training and the trainee can work quietly before going to the work area to practice should be made available. (This applies if a computer, video, or text material is being used.) Ideally, equipment involved in the training is located away from the production area to make conversations easier between the trainee and the trainer.

Make Other Employees Aware of the Training.

Employees must know when and where it will take place. (Information can be posted on calendars, bulletin boards, E-mail, etc.) This builds morale (viewed as the company's interest in the growth of employees) and reduces unnecessary interruptions when the trainer and trainee are working together. In addition, people in other areas will be more understanding if trainees asks them questions.

Track Progress and Evaluate It.

Before the training begins, the trainee's skill level should be noted. This can be done with a skills assessment or a purchased aptitude test appropriate to the skills to be measured. As the training progresses, changes in the trainee's skills should be noted.

Once training is completed, it is important to evaluate the training as a whole. Were goals accomplished? What changes need to be made, if any? Has a return on investment (ROI) occurred according to the assessments previously mentioned?

Training the OJT Trainer

For lack of a knowing a better way, many companies continue with unstructured OJT just as they have been for years. Most admit the need to improve their OJT training. Many skilled trades are faced with a dilemma because of retiring experts. Companies feel stymied because they cannot find qualified personnel who will help them grow. If they find good candidates, it takes years to train them.

Structured training must be developed by skilled persons who have been trained to be a trainers. They can acquire training through "train the trainer" courses. These course are available, but not all of them are reliable. Obtain recommendations from someone who has a training background.

Special training for trainers is well worth the investment. Trainers will feel more competent, comfortable and enthusiastic in what they are doing. Remember, these trainers will help the company accomplish its business goal and in a shorter period of time.

While structured training is not easy, it works! It requires commitment from the top and perseverance by all involved. It means accommodating those who will be doing the training by decreasing their production requirements and providing other incentives.

Studies have indicated that structured training can be five times more effective than the typical unstructured OJT approach. This can also mean that traditional training time can be cut by about half and the time is always a major deterrent to setting up training programs.

OJT training and training the OJT trainer cannot stop at the shop floor. This training also applies to the front office and engineering departments. With a work force that is projected to be declining in most industries in the next eight to ten years across the country, can businesses that wish to remain competitive not consider and adopt new methods for OJT training?

Mary Bresnahan is the principal of the Bresnahan Group for training and Human Resources, Wheaton, Illinois.

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