Chapter 1 and 2

Numerous studies have shown that training affects the overall financial well-being of the organization, that monies invested in training will have:

** A POSITIVE EFFECT ON THE ORGANIZATION, ultimately increasing profitability -likewise, when the training needs of an operation are not adequately funded, it will have a negative effect on the bottom line

Much training literature states that increased training promotes a high degree of job satisfaction, which in turn leads to:

** HIGH RETENTION RATES -it also logically follows that lower turnover of staff is strongly correlated to high guest returns and investor interest -managers who train their staff enjoy a LOWER turnover, and in turn, the satisfied employee is caring for guests professionally so they want to return

Other reasons for high turnover point directly to:

** employee training, specifically lack of clear-cut responsibility and absence of direction for employees and the company -employee training is the most useful tool to fill these voids -on-the-job knowledge is a critical variable in building employee comfort, performance, satisfaction and ultimately the desire to stay with the company

Often, training and development goals were so broad, they were:

***impossible to quantify -training was often held responsible for all employee actions as they aligned or did not align, with performance goals -even the best training department can only assist in modeling employee actions -how the employee responds to instructions is primarily the responsibility of the employee and their immediate supervisor -was believed that if service was good, the training must have been good -there are countless operational variables that affect the success of training -very difficult to measure the effectiveness of training independent or other variables such as education, experience, work environment -another historical issue that hospitality industry struggled with was choosing the right person to conduct the training -when a property was in a rush to get people into positions- especially after an opening or at a seasonal property- the tendency was to grab the highest performer and pair that person with a new hire -the high performer did not always have training skills and the resulted training suffered

Companies that offer professional development and educational assistance have a:

***powerful recruiting tool to market to prospective employees as well as an important key to employee retention -in an industry that has traditionally suffered from high employee turnover, hospitality companies have increasingly realized the severe repercussions turnover has on guest service -with competition so keen in recruiting and retaining quality employees, training is no longer optional; it is a survival tool., and training in the hospitality organization has become a mainstream function of the HR division

Gary Becker, author of HUMAN CAPITAL, created:

**THE HUMAN CAPITAL THEORY -this theory suggests thats employees, businesses and society receive a direct economic benefit from investment in people -in like manner, if an organization can harness the sum of its employees, skills, training, education, experience, life skills, knowledge and intuition, then the aggregate utput translates into real and measurable value to the organization -developing the human capital in your organization will increase its ability to adapt to environmental changes and become a learning organization

Trainers should implement a prioritization system after review, in which:

**training issues are categorized as follows: issues needing immediate attention, those which should be addressed with a longer, but stipulated time period and issues in which the organization should continue with already successful efforts -it is estimated that probably 70 to 80& of employees attending training have varying degrees of a learning disability that, although not interfering with normal life functions, makes learning under certain circumstances difficult

learning disabilities can manifest themselves in numerous ways, including: visual, auditory, muscular, processing, social and attention. SPECIFIC EXAMPLES INCLUDE

VISUAL: an inability to place concepts in a written format AUDITORY-an inability to combine a variety of tones into meaningful words or to combine sounds into spoken language MUSCULAR- failure to properly use fine or gross motor skills PROCESSING: Inability to process and store information in a short-term memory ATTENTION- •attention problems can range from hyperactivity to drowsiness

delivery time

-delivery costs are those incurred during the actual delivery time and those that facilitate the delivery process

Some of the many factor contributing to the labor shortage in the hospitality industry are:

-demographics -competition from better paying industries -low perception of service culture -perceived lack of education needed -perceived lack of advancement opportunities

There is a familiar saying: "If you want something to improve, you measure it"

- by measuring human capital, you can better validate trainings return on investment as performance improves -as a trainer, you will need to constantly substantiate the value of training in upper management -the challenge for you is to develop a systemic approach to quantifying human capital -human capital worksheets designed by experts in the field to guide this process are available on the market -the concept is to quantify increases in productivity or profits that have resulted from the trainee's improved performance YOU MUST ASK: -what does this employee do better since they have completed the training? =measuring the benefits of training and extrapolating it throughout the organization will confirm trainings ROI in human capital

historical perspective

- historically, training departments have failed to promote themselves or their value to the overall operation -training and development personnel play multiple roles: administrator, consultant, designer, instructor and others -at any given time, trainers may be occupied with managing their own departments, aiding other departments in identifying performance problems, seeking outside industry opinions, designing solutions to performance problems and then bringing training to life by facilitating learning

Peter drucker has stated:

-"the only meaningful economic resource" is knowledge -an organizations training and development department disseminates appropriate knowledge to its employees

estimated that $55 billion or more is spent on training in the US each year

-BUT the training department, like the marketing and research functions in an organization, has a difficult time showing an immediate effect on the bottom line -historically, US organizations have tended to reduce their training budgets in response to failing profits -in numerous other countries, however, the custom is to increase training and development budgets, when profits begin to fail -the premise is that well-trained employees will help the organization thrive and ultimately produce increased profits

Employee performance improves when companies invest in systematic training programs

-In 1996, the UNITED NATIONS HUMAN DEVELOPMENT STATED "the key to national economic growth is investment in education -UNITED NATIONS HUMAN DEVELOPMENT FOUND that by increasing employee education by just one grade level, the gross domestic product increased by 9% -While there advances are measured on a national scale, similar advances can be realized in your organization

Although training has been called the "aspirin of all industries", it is not the solution to all problems

-a proficient training professional has to help guide the organization in distinguishing between outcomes that training efforts can affect and those results that would make training investments futile. -low employee morale may be linked to issues such as wages and benefits that are not competitive or work equipment and supplies that are in bad repair/short supply -these problems cannot be directly improved through training -a session on stress management for employees may indirectly help, but the cause of the problems would remain unresolved

Recruiting is an expensive process. it is highly labor intensive and can consume 30% to 50% of a mangers day. SPECIFIC COSTS OF RECRUITMENT ARE:

-advertising -managements time in selection -applications forms -testing -interviewing -reference checks -managements tie in hiring decisions -maintaining legal advice -managements time working the floor filling in -human resource knowledge -record keeping

Negligent training or supersion:

-an injured person can bring a negligent training or supervision claim, when an employers failure to adequately train an employee results in the employee committing a wrongful or negligent act that causes injury.

Creative training

-another role of training is working with the management team to develop innovative training approaches

Promoting training

-as advocates for training, training managers and directors must maximize the level of support for and involvement in training, throughout the organization, starting with senior-level management -some experts even refer to the CEO role as more appropriately being called the CLO- Chief learning officer -as the training professional, you may have to initiate/facilitate messages of support -fun, creative marketing approaches from training departments help in heightening the interest level among employees as well as the recognition given at the end of programs

Training issues of the 21st century

-as the competitive environment of hospitality businesses escalates, quality issues and how a business can gain the competitive edge through guest service become even more vital -the hospitality organization that consistently delivers quality based service typically understands the paramount role of continuous employee training/development -the particular challenges that characterize the hospitality industry must be fully understood, however, by trainers trying to deal with some of the typical obstructions to seamless, continuous and effective training -most of these obstructions are not new to the industry but are actually age-old excuses that have been present for decades -the scheduling of training has often been problematic in hospitality companies, particularly those that operate 7 days per week, 24 hours a day •Requiring a third-shift employee to come in during the midday hours for a seminar interferes with sleep schedules and off-work activities -many organizations are not equipped to provide supplemental training in the middle of the night -another complication of the always open environment is how to creatively schedule training time around work time to coincide with slower hours and days -often the scheduling complexities are intensified because of budgeted payroll dollars and not being able to spend the money for training during off season or slower times -very real payroll issues can also come into play in hiring employees and not allowing sufficient training time before business pick up or the high season begins

Recruitment

-as the trainer, you can contribute to the recruitment process by encouraging managers to hire people who are likely to succeed in the position -can examine each position in your company/provide the manager with a list of skills, knowledge, experience and language needed to fulfill the position requirements -by working closely with the hiring managers, you can develop training the promotes job satisfaction -the team approach will lead to better retention and improved recruitmen results

Negligent training

-as with many aspects of operating a business, there are legal ramifications that reinforce the importance of training as a consistent, effective process throughout the organization -the concept of NEGLIGENT TRAINING became an important issue in litigation in the 1990s and there are no signs that it will diminish in this new century -negligent training is typically applied in cases where customers or guests are injured because of the behavior of employees -this injury might involve a physical injury, an emotional one or even a psychological one -plaintiffs aren't necessarily guests in all cases either; they could be an employee, purveyor or a third part visiting the business documentation of training completed by employees is important evidence in a lawsuit -in shows that the employer took a certain level of reasonable care in trying to prevent problems such as sexual harassment, violation of safety/fire procedures, discrimination, irresponsible alcohol service, etc -although training is no guarantee that employer liability will be completely eliminated, the proof of on-going, through training has the potential to reflect positively on the employers situation -negligent training can also involve cases in which employees allege they have been harmed -the liability related to this legal doctrine can be used to the negligent design of a training program, the delivery of a program, vendor selection, trainer selection or the supervision provided during the training process -the liability could encompass individual trainers and owners, managers, outside contractors/vendors -state laws can vary regarding employer liability in such cases and it is important for businesses to understand the environment of their potential legal risk -in many states, liability occurs only if it is established that the employee was injured as a direct result of lack of training -it also is recommended that employers seek legal counsel, as a form of prevention, in making sure that any questionable or potentially problematic training and development practices are evaluated

Today's workforce

-at a time when guest demands are escalating, the hospitality work force is changing -no business can pretend that employees of today have the same work values and expectations of decades ago -in fact, there is a type of unwritten, unspoken psychological contract between employers and employees of the twenty first century -employers provide learning opportunities and professional development in lieu of job security -employees will remain with the organization as long as they are developing skills and meeting/exceeding their expectations for skill development -employee motivation today is tied to education, training, mentoring and growth of opportunities -in relation to the changing expectations of the American work force, corporations are increasingly bearing the educational needs of working adults -a survey by the society of HR management showed that 94% of US companies offer professional development and 85$ offer educational assistance as benefits -of companies with 5,000 or more employees, 98% offer professional development and 93% offer educational assistance

hospitality today

-competition in hospitality industry has escalated -no longer is it acceptable to merely satisfy the guest -today, the key to guest loyalty/commitment is exceptional service and when problems do occur, quick and precise recovery approaches -whether visiting a quick service restaurant or five star, guests bring expectations that must be met/exceeded for their return business to be ensured -lifelong learning as an essential component on this competitive marketplace is no longer a buzzword but a business requirement

appropriate training can assist in reducing Absenteeism

-during orientation, all employees should learn the importance of their jobs to the whole operation -when employees see themselves as part of a team, their self-worth is enhanced and their desire to e on the jobs grows -employees should be shown that they are missed when they are absent -if an individual realizes their absence will affect the team, that person is less likely to miss work -however, excessive regular Absenteeism should lead to dismissal -the longer an abusive employee is allowed to stay, the greater damage it does to the team -any employee who chooses to not develop skills, chooses not to develop a team attitude, or is careless about coming to work should not be allowed to continue employment

There are distinct times when the training and development budget should be increased

-during the first 6 months of operation -at the introduction of new product (including a new menu room type, a new service) -at the introduction of a new system -during periods of increased growth resulting in increased hiring -when implementing management development programs

New paradigms of organizational behavior have emerged as we proceed into the 21st century, reinforcing the important of the learning organization . SOME OF THESE ORGANIZATIONAL CHANGES INCLUDE:.

-emphasis on partnerships and alliances -inspirational leadership as compared to autocratic styles -global versus domestic markets -a competitive advantage based o time not just cost -technological tools that support collaboration -diverse work force -cross functional work processes and work teams -corporations striving to be identified as employers of choice * these organizational changes have brought about changing competencies for employees, including those in hospitality - employers want employees who are capable of learning to learn -communication, collaboration, creative thinking and problem solving abilities are valued for the hospitality organization striving to successfully compete in this changing arena

The american society for training and development recommends that organizations conduct at least annually, a review of training processes to evaluate accessibility and compliance with the ADA. it is recommended that the review focus on the following:

-general policies procedures and practices -participant assessment tools -skills evaluation tools -training improvements -course planning -specialized courses for people w/ disabilities

It is important that you document all benefits of training using input from original sources whenever possible. ORIGINAL SOURCES CAN INCLUDE:

-guest comments -time cards -check in time efficiency data -rooms cleaned per hour data -on-job accident reports -employee turnover rates

Intangible benefits

-hospitality businesses are dependent on the repeat guest and intangible benefits in many instances to determine if a guest returns TYPICAL INTANGIBLE BENEFITS INCLUDE: -increased guest satisfaction -increased employee motivation -increased employee achievement -employee recognition -employee interest -employee responsibility -the challenge is to find a way to define these qualitative benefits and include them in any training proposal or budget discussion

Return on individual: the other ROI, HUMAN CAPITAL

-hospitality is a people business, yet we place dollar values on buildings, land, food, inventories and equipment, we have difficulty assigning a dollar value in our human capital HUMAN CAPITAL- has often been called "soft" side of the business -most organizations do not measure their human capital, as many CEOS and industry leaders continue to believe it cannot be expressed in dollars -must show that training has a positive return on investment for the organization, that training does improve the bottom line of a company -however, there are many valuable types of training that you cannot easily measure in dollars

Adult learning principles

-hospitality organizations trainers can play an important role in educating managers and others involved in departmental training about the unique aspects of training adults -the study o adult learning OR ADRAGOGY is quite extensive

Training reduces turnover by providing employees with:

-increased job satisfaction -involvement of corporate culture -involvement in decision making -information about their jobs and organization -organizational stability -predictable work environments

GLOBALIZATION

-industry and company growth that encompasses facilities in all parts of the world. training employees from different nations and cultures, with different social behaviors presents a difficult challenge to the instructional designer

LABOR COSTS

-labor is usually the LARGEST EXPENSE in a training program, though it is also one that trainers have neglected to budget for -LABOR COSTS CAN INCLUDE: payments and wages to instructors, technicians, any support staff and training developers -also includes wages of trainees while they are participating in raining -labor costs in hospitality will always be higher when compared to many manufacturing or other types of industries, since hospitality managers cannot automate most of the work of its employees -todays shrinking labor pool has spurred higher wages in many positions simply to attract employees -because wages are a major factor of labor costs, this shift to higher wages affects the end result -labor costs are also affected by management, supervisors, training, scheduling, motivation level of employees, seasonality, and the ability to accurately forecast business -to increase accuracy, need to consider the labor costs of your program in each phase: pre-program, needs assessment, design, development, planning, delivery, maintenance evaluation and follow up

trainers in an organizational setting must transform this theoretical knowledge into real-life applications ... FOR EXAMPLE:

-leading adult leaner theorist Malcom Knowles emphasized that self-motivation is the best stimulus for learning with "need to know" and "readiness to learn" being critical to the success of adult learning programs -even if the training is mandatory, a receptive, attentive group will certainly make the process more successful you might suggest that the manager consider introducing the concept WIFM to the group of employees, a very effective training technique -WIFM, you tell the restaurant manager, means "WHAT IS IN IT FOR ME? -addressing this unspoken question with the employee group may maximize the turning in process -one of the most obvious to the employee and to the restaurant operation, is an increase in the average guest check: more tips and more in profits -the importance of internal factors should not be overlooked either -enhanced self-esteem and the feeling of accomplishment are paramount motivators n learning

HOW TO MINIMIZE YOUR EXPOSURE CLAIMS (NEGLIGENT TRAINING)

-make certain that all employees, supervisors and managers are thoroughly trained in their job duties and responsibilities. this is especially important when an employees duties involve special hazards or extensive involvement with the public -document all training methods used. This documentation should include information concerning who was trained, when was the training, and the content of training -monitor and document the performance of every employee. Take steps to ensure that every employee receives some sort of regular feedback with respect of their performance

Absenteeism is a symptom of larger operational problems. Absenteeism is FREQUENTLY DUE TO:

-managements insensitivity -management lack of response to the critical needs of employees -low morale, prompting lack of motivation -low morale, promoting lack of motivation -low morale, causing increased levels of stress -low morale, causing increased accidents and illness

Managers need to be trained in diversity issues to be better equipped for developing employees

-managers who are skilled in cultural diversity issues can help your property become the workplace of choice among non-traditional labor groups -the unemployed segment of the population frequently must overcome numerous obstacles to maintain employment -common among these are: transportation, childcare, language, health and life skills -a well-trained manager can assist or guide the employees more effectively in overcoming these obstacles

Training is an investment in people

-many business segments have long since developed industry-wide return on investment measurements -the hospitality industry as a whole is just beginning to recognize the value of benchmarking training and its return on investment -historically, hospitality managers have emphasized measuring financial assets, food costs, labor costs -but the broader focus of todays management includes accounting of human assets and their value in a high-service industry

Technological changes

-may also have to be the change agent for an organization by preparing for future business demands -with the challenging day to day demands of a fast paced hospitality company, taking time to prepare for the future can be met with resistance •You have to be at the forefront in stressing the "shorter shelf life" of knowledge; knowledge today will amount to only about 10% of what we will know in 10 years -as the US economy has moved from manufacturing to service and brawn to brain, the challenge is for employees to work smarter through technological advances to meet increasing customer demands -todays technology allows for a lot what will tomorrow hold/ -trainers often have to be the progressive consciousness of organizations in expanding these horizons and exploring new paradigms -although we may not know the specifics of all new technologies, it is known that LIFELONG LEARNING becomes paramount in preparing for such changes

survival of many training and development department hinges on their ability to calculate the value of training

-most leaders of hospitality organizations are bottom-line oriented -unless a good or service contributes directly to the bottom. line, it is often eliminated-and this includes the training function -a strong incentive exists to create a single method of measuring the cost of training -however, since a single way to conduct training doesnt exist, an accurate single formula cannot be created to determine its cost -the analysis of training and development costs to complex and dynamic

Training and the strategic plan

-one of the key roles as a trainer in a hospitality setting is to incorporate training into the organizations strategic plan -by doing so, training becomes a vital component in the success of the company -training directors, whether corporate, regional or property level, often have to adopt new roles in educating other managers of the necessity of training as an on-going, continual process -this may necessitate tracking the progress of employees and making clear connections between new skills and competencies and the positive effect on productivity/job performance -also may necessitate taking on a marketing role in helping other managers see how a comprehensive strategic plan helps accomplishing organizational goals

The concept of ROI is one of conducting evaluations to calculate to impact training has on the bottom line. THE IMPACT CAN BE MEASURED BY:

-profit -productivity -performance TOOLS TO USE TO DETERMINE THE ROI: -cost benefit analysis -cost effectiveness ratios FACTORS TO INCLUDE IN ROI: -cash flow -investments -training effectiveness -training transfer

Usually, the first and second highest-rated reasons for turnover center on the organizations leadership, specifically citing communication and quality of vision or management

-quality of supervision and communication are critical to the attributes of any hierarchical structure and can be improved with effective training - employees have a strong need to be informed' -businesses with strong communication systems enjoy lower staff turnover

OTHER LABOR-RELATED BENEFITS DERIVING FROM EFFECTIVE TRAINING ARE:

-reduction in the number of on-the-job accidents -fewer employee grievances -fewer lawsuits -less likelihood of strike

Costs of not training

-some would argue that there are not true costs of not training -if you never conduct training, there would be not salaries, no benefits, no materials, no overhead and no trainees time -the hospitality industry is a service industry -provides high-touch encounters for guests in an increasingly high-tech environment -competition within the hospitality industry has become fierce -competition for labor as well as guests is a new threat that most long-term operators have not had to deal with previously -the true cost of not training is intangible -it can be seen in the unhappy guests, which threatens your company's reputation OTHER EXAMPLES OF INTANGIBLE COSTS OF NOT TRAINING: -loss of uniformity service -loss of quality of staff -potential for poor service -guest complaints -potential lost sales -potential accient

Training and development should be:

-strategic, long-term, goal-oriented, supportive of better ways of learning, conductive to workplace innovation and focused on guest service thinking/behavior

QUALITIES OF GREAT TRAINERS

-subject matter expert -sound training skills -enjoys working with people -sense of humor -enthusiastic -articulate -approachable -practices what preaches -creative -flexible -empathetic

Learning organizations

-successful training requires a corporate environment that encourages lifelong learning -moving an organization toward a culture where training is an essential , continuous process for all hierarchical levels is a long term goal with strategic steps that eventually result in the organizational becoming a LEARNING ORGANIZATION -this phrase, coined by Peter Senge, describes his vision of "an organization where people continuously expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free and where people are continually learning how to learn together

Who benefits from training?

-the benefits of effective training are employees, management guests and the organization -the positive outcomes in each area are outlined in the PICTURE IN FOLDER OF BENEFITS OF TRAINING!!

DIVERSITY

-the changing business environment involving a more complex work force also reinforces the importance of training -while some companies paid lip service in addressing DIVERSITY in the work force in the 1990s, the 21st century brings a higher level of expectation for success -no longer can companies in the US predict that the work place WILL change; it as changed and will become increasingly more diverse -affects trining and development approaches in hospitality organizations -diversity is multi-faceted, incorporating differences in many areas, such as culture, gender, sexual orientation, age, socioeconomic background, literacy levels, learning styles and aptitudes -a fundamental element in delivering effective training and development programs in diverse work forces is having the awareness, willingness and adaptability to use different training approaches with individual employees -even learning styles require some adaptation in addressing the uniqueness of each employee -training sessions should strive to reach VISUAL, AUDITORY AND KINESTHETIC learners by incorporating visual presentations in the way of diagrams, presentation slides, or illustrations -trainers can address the needs of auditory learners by recording training sessions, talking through. training content and providing opportunities to discuss the training material -KINESTHETIC learners need time to actually practice and be able to touch the material being covered

What does the labor shortage mean for your training department?

-the current environment is one of fierce competition for employees -likewise, the environment is one of fierce competition for guests -hospitality thrives on its serviceability-people serving other people -it is vital to the long-term success of a hospitality business to have highly trained employees -the hospitality managers job requires that they do many things at once -an effective training and development department can enhance the managers productivity by helping to provide staff that is well trained -training and development of the manager should be ongoing to demonstrate support of a learning atmosphere

why is training an investment?

-the hospitality industry's employment base is the largest of any industry in the private sector in the US -it surpasses the agriculture sector and the auto, electronics, steel and textile industries combined in a number of people employed -national unemployment continues to remain low, with less than 4% of the working population unemployed in 2000 climbing slightly to 4.8% in 2001 -AS A RESULT, the managers of hospitality operations find hiring sufficient staff a constant challenge, even when the positions available require little or no prior experience

training professionals in hospitality organizations may also have to lead their companies in using training technology

-the old method of telling the new employee to "follow sue around" for a few days to get the hang of things, is not consistently effective and does not typically meet the expectations of employees -use of learning technologies is on the increase with more interactive, experimental training options available -selecting the appropriate technology traverses a number of skills and knowledge competencies, including: an understanding of the job tasks involved, the company's performance standards, the adult learning process and characteristics of the employees who will be trained -the training director/manager therefore becomes an important source of info

Adult learners need training in that is life-, task or problem centered

-the practical aspects of being able to immediately apply the new knowledge, skills and aptitudes will reinforce the entire learning process

benefits of training

-there are numerous benefits of effective training -the core function of the hospitality industry is people serving people -as employees become better training at their jobs, they are better able to serve the guests in their organizational capacity -training is designed to change behavior in the workplace -effective training is a classic example of a win-win situation

INTRO

-there is a saying that "every organization pays for training whether it has a program or not" -an organization can recognize the value of training by providing a systematic approach to training delivery, thereby reaping its benefits -or if it can choose to ignore training and "pay" for training as its guests receive poor service, poor products or poor quality and eventually choose to go elsewhere -training has been hard hit as a department in the past few decades -in many cases, training departments were eliminated, victims of corporate downsizing -in other cases, training departments were outsourced or re-engineered into departmental functions -even today, many organizations fail to include training as a line item in their operational budgets-especially in an environment of corporate buy-outs and takeovers where an organization is eager to make itself look as strong on paper as possible

Several hallmarks define a learning organization. The learning organization:

-thinks of learning as synonymous with working -becomes smarter over time -sees learning as the best source of competitive advantage -thrives on change and anticipates and prepares for future success by increasing the staffs skills/knowledge -has a nurturing organizational environment that taps into the collective wisdom of the entire work force -has a working environment where people constantly are learning and applying their knowledge to help the organization continuously improve

Other costs

-this category covers all miscellaneous costs -each areas, though small enough to not be considered a major cost category needs to be paid and accounted for in planning/analysis MAY INCLUDE: -replacement costs -overhead -pre-program -follow-up -indirect -cost of cost analysis -opportunity cost follow up activities that become cost items include -surveys -questionnaires -interviews -trainees time - trainers/supervisors time, peers time, etc

Resources of values/savings

-this source of measurement used for calculating the benefits of training will vary with this type of training you conduct -benefits should be identified in the planning phase of training -the identification of these benefits is crucial to the successful computations of the cost-benefit analysis

Intangible costs

-those we cannot easily quantify -opportunity costs are often considered intangible as they are difficult to measure and sometimes impossible to identify -a primary intangible cost of training is the development of ineffective training that does not lead to change in workplace behavior -the ultimate purpose of training in the workplace is to increase the skills or knowledge of employees, supervisors and managers in the organization

Why is it different today?

-today, training is being held more accountable financially -trainers must justify their mere existence -corporate downsizing, re-engineering and a slowing economy have directed a greater focus on profit -there is still considerable debate whether training increases stakeholder value to an organization -fortunately more training departments today are being grouped in top management, answering directly to district managers, GMs, or the CEO when training is aligned with the top management, there are many benefits -you are better positioned to make decisions among competing departments, more likely to get the funding needed to accomplish the operations goals and objectives ONE APPROACH TO FORMULATING A TRAINING BUDGET IS SEEN IN THE: zero-based budgeting concept -in this case, the training budget is built from the front line up each year -IN THE PAST, it was common for a larger percentage of the training budget to be earmarked for management development

materials costs

-training materials come in various forms and incur numerous costs, usually divided into subcategories of expendable and non-expendable -expendables are those items we think of as one per person or items that will not be used again -non-expendables are items you will be able to use again as you present the same program to other trainees

There are some standard practices you should use in costing a training project

-use a systematic approach -consider the entire life of the project -start accumulating costs early -know when to estimate a cost

THE VARIETY OF CREATIVE TRAINING OPPORTUNITIES IS IMMERSE... FOR EXAMPLE:

1. ASHLEY HOUSE- here, one of the employee training and development programs involves one employee each week staying at the hotel for a night as a guest. The employee then spends the rest of the week observing the various hotel departments. this helps employees see the hotel through the eyes of a guest/enables them to gain a greater appreciation for what staff members in other departments do to get their daily work done and make the hotel successful 2. WALT DISNEY WORLD- 3.BOULDERS RESORT IN COLORADO- asks its managers to at as "cornerstone coaches" for their employees, training employees in the "10 cornerstones" that tie into the mission of resort 4. RITZ CARLTON- certifies its employees as they move up the hotel's career ladder and reach higher skill levels through in-house and other training -as seen in the examples, training efforts/programs can differ widely from one hospitality organization to another, depending on the mission of the organization, the staff members involved and the resources available -all forms of ob training have a common purpose: to change the way staff members behave -training is designed to increase employee efficiency by fostering positive changes i the trainee's knowledge, skills and aptitudes

TOP FIVE REASONS COMPANIES SHOULD INVEST IN TRAINING

1. HELPS ATTRACT AND RETAIN GUEST TALENT- by training staff through employee development programs, might overcome major hurdles in the hiring process and employee retention that many organizations experience. For one, employees regard training initiatives as one way of improving their craft based on the premise that such programs are educational in nature -by sponsoring sales training programs, for instance, salespeople can gain new insights to improve the selling skills and positive attitude at work. Your reputation as a good employee that cares about your employees professional development will also be enhanced. As you help your employees further their skills and achieve personal growth, you create a goldmine of talent, which can give your business a market edge over competitors 2. CAN IDENTIFY WHICH EMPLOYEES ARE WORTHY OF PROMOTION- trained employees can form your pool of candidates for possible future promotions as they have developed certain levels of competence over time. With tis pool, you need not look further for qualified candidates for managerial or executive posts in your organization, which are best given to someone promoted from within the organization. As these employees are highly familiar with the business operations and organizations structure, you can be certain that they understand and are capable of complementing the goals of the company 3 CAN INCREASE EMPLOYEE ENGAGEMENT- employees are also likely to be more loyal to your company, seeing that you are willing to expend resources for their attendance at conferences or enrollment in specialized courses. The bottom line is that your willingness to invest in your employees training/development will likewise inspire them to invest as much hard work as they can into your business 4. IT TRANSLATES INTO SAVINGS FOR COMPANY- the most effective training programs are those that empower employees to become multi-skilled, extending their skill set across various areas -also becomes easier for companies to tap employees with diversified skills in performing a variety of functions or transitioning them to other related roles within the organization -in return, employees feel empowered having expanded roles and responsibilities in your organization 5. HELPS SHAPE THE FUTURE OF YOUR ORGANIZATION: -as you make employee training/development programs of your organization, you will find the need to update your offerings continuously -you have to think about how you should be designing or refining your training methods over the long term to make them more responsive to employees needs, interests and goals -also need to make sure that your organization is abreast with the current trends in the industry and make an assessment whether they warrant a change in your business culture or brand of customer service, in which case, a new training framework should also be put in place -employee training/development should be a shared responsibility among employees, managers and organization -when planned and implemented correctly/consistently, the benefits gained can spur considerable growth at both individual and organizational levels

Turnover costs are commonly separated into THREE categories

1. SEPARATION COSTs- include those of maintaining files, conducting exit interviews, separation pay, unemployment taxes and the termination of benefits 2. REPLACEMENT COSTS-include those incurred while conducting searches, interviews and background checks, buying new uniforms, covering waste due to productivity loss, and money spent on the interviewing process 3. TRAINING COSTS- include those monies spent on orientation, printed materials, trainer wages, and those monies lost due to reduced productivity of the trainee and trainer -turnover costs for the hospitality industry employment base exceed $3.7 billion -if if industry growth projections are correct, these costs will continue to rise dramatically unless action is taken to reverse this trend and reduce turnover -positions that typically turn over a higher rate are: buss person, room attendant, dishwasher, valet and wait staff -depending on the needs of your operation, you may choose to focus specific training on people in those positions

Training usually benefits operations by saving costs in THREE MAJOR AREAS:

1. lABOR- a major tangible benefit of training is the savings of time in the form of labor hours. Training can reduce labor costs by expanding the skill set of the employee, thus enabling them to do work more efficiently. Training can reduce labor costs by increasing the employees knowledge of the job and helping them to work more effectively -can also reduce labor costs by teaching the employee how to increase productivity on the job -reduced employee turnover is the single largest documentable labor "savings" or benefit to training 2. MATERIALS- can measure the training benefits associated with materials by calculating reduced costs, but you can only measure those associated directly with the aspect of the job that was trained. You can achieve and measure materials cost reduction through training to increase quality control. Training to improve inventory procedures can also result in reduced materials costs 3. EQUIPMENT- the tangible benefits that can be gained from equipment use are typically in the form of increased productivity. The increased revenue resulting from better use of equipment is the benefit. Another benefit that can be derived from equipment training is the reduction of equipment downtime or reduction of scraps or rejects produced by that equipment

There are numerous ways in which you can organize the costing process of training. to increase accuracy and efficiency, many professionals have chosen to divide costs into FOUR MAIN AREAS

COMMON CATEGORIES USED IN HOSPITALITY INDUSTRY ARE: 1. labor costs 2. materials costs 3. delivery costs 4. other costs

Materials handling is another area in which cost-reduction benefits can be achieved. Materials handling affects several positions and all employees holding these positions should be trained

COST REDUCTION CAN BE MADE BY IMPLEMENTING SUCH DIVERSE PROCEDURES ARE: -using appropriate containers for transporting food for an off-premises catering event, therefore reducing waste and guest complaints -ensuring the appropriate use of chemicals, therefore avoiding burns or pool closings

Turnover

DEFINITION: the entire cycle of losing employees and the process of replacing them -it includes an accounting of each time a position is vacated, either by the employee quitting or being otherwise terminated and measures the relationships of employees to an organization as they leave, regardless of reason -the term turnover is defined by prince as "crude turnover ratio, of the number of organizational members who have left during the period being considered divided by the average number of people in that organization during the period -the hospitality industry reported national annual turnover rates range from 154 percent to 240 percent, more than 10 to 20 times that the US businesses in general -numerous studies have been conducted on employee turnover within the industry segments

The annual turnover rates by industry segment according t these sources are:

HOTELS- 60-240 percent RESTAURANTS- 100 to 300 percent CLUBS- 75% RETAIL GROCERY- 35% ALL US BUSINESSES- 12 percent

competencies that are important for property-level trainers include: last slide pp 1

INDUSTRY AWARENESS- understanding not only the organization but the industry as a whole, as well as industries from which to learn and benchmark training and development activities LEADERSHIP SKILLS- influencing others positively to achieve a desired work result INTERPERSONAL RELATIONSHIP SKILLS TECHNOLOGICAL AWARENESS AND UNDERSTANDINGS PROBLEM SOLVING SKILLS SYSTEMS THINKING AND UNDERSTANDING- understanding the dimensions of the organization and applying that info to improve human performance through training and development processes PERFORMANCE UNDERSTANDING-understanding standards of performance KNOWLEDGE OF APPROPRIATE INTERVENTIONS- able to improve employee performance by using those interventions that fit best with certain employee characteristics and learning styles BUSINESS UNDERSTANDING ORGANIZATION UNDERSTANDING NEGOTIATING /CONTRACTING SKILLS CONSULTING SKILLS

Addressing other individual needs of trainees may be more complex

for example, employees with disabilities can encompass broad range of physical and mental conditions -THE ADA mandates equal access to company sponsorship training and development for employees -according to the ADA, the employer has a legal obligation to accommodate employees who have disabilities and require modifications for training to be accessible and effective