Training and development that is conveyed to employees of an organization is an essential part of Human Resource Management since it enhances the skills and knowledge for a particular job (Bansal, 2014). Many managers would not hire employees who are incompetent in their area of work. However, most of them do employ under-qualified employees innocently because of the development of new methods and the ever-changing technology. Training is as productive to employees as it is to employers, therefore, very vital for the development and success of an organization. For training and development to be beneficial, organizations must invest in providing training opportunities to its employees. Conversely, when it comes to investments in training, Canadian companies have tended not to be leaders (Saks, Haccoun & Belcourt, 2010).
Organizations may reap many benefits from investing in the training and development of their employees, hence, achieve a competitive advantage (Saks, Haccoun & Belcourt, 2010). Also, training and development of workers can help an organization achieve its set goals as well as objectives. Furthermore, it can be used by the organization to maintain their present employees and boost its attractiveness to other prospective employees. Training and development benefits employees by improving their morale (Wentland, 2007). The more an employee has training, the greater the job satisfaction and subsequently he or she will contribute more to the organizational goals and success (Galanaki, Bourantas & Papalexandris, 2008). Having trained employees will also reduce the need for constant supervision since the employees will be acquainted with their work in the organization. In addition, employees become more qualified for promotion from the efficiency and skills acquired during training (Sofo, 2007). Untrained workers tend to be inefficient and have a low production value.
However, training and development has proved to be a tiresome, time consuming and recurring process (Bansal, 2014). Therefore, many Canadian organizations find it quite profitable to outsource it. Outsourcing is a very powerful trend in human resource management. The underlying principles of outsourcing in human resource functions like training include accessing up-to-date technology and expertise, having increased capability to focus on more strategic issues, and having the ability to demand improved and measurable service levels (Belcourt, 2006).
There are many training outsourcing needs in various industries such as manufacturing, transportation, healthcare, insurance, media, entertainment, banking, education, mining, retail, technology, telecommunications, to name but a few. Many small companies in Canada may engage in outsourcing all human resource functions, unlike larger companies that retain essential components from outsourcing (Moskowitz, 2008). Some of the reasons why large companies may not outsource training and development fully include: lack of competent providers of human resource management services for the training of their employees, unpredictable situations such as industrial relations disputes, and most importantly because of the fact that human resource training is very vital to the culture, objectives and goals of an organization and for this reason, it has to be managed closely by the organization (Belcourt, 2006).
On the other hand, small firms in Canada majorly outsource training and development because of lack of skilled trainer and the expertise required to train within the organization. Also, another reason for outsourcing is the lack of adequate infrastructure (Bansal, 2014). Small firms outsource training needs of its employees to save time and cut cost (Bansal, 2014). There are many companies offering outsourcing services in Canada for training and development with each company specializing in its market niche. For example, one company might be very good at benefits counseling, while another at employee assistance, but it is rare to get a firm that is competent in all areas of training (Belcourt, 2006). Therefore, competency and quality lies within the firm. Many firms cannot employ permanent trainers that are expert on every subject on which employees need training. Even though there might be presence persons with necessary expertise in the firm, it proves unprincipled to actively engage them in these training tasks because it will deprive them of their major tasks in the organization (Galanaki, Bourantas, Papalexandris, 2008). One of the most prominent outsourcing companies in Canada is GP Canada Co., which offers substantial training and development outsourcing services.
Outsourcing of training and development may in turn have its challenges to an organization. Outsourcing may be seen as a way of reducing expenses to many organizations in Canada. Nevertheless, it proves to be expensive in the long-run. These companies that offer outsourcing services may charge a lot of dollars per head. Hence, companies that infrequently require training services may spend more on their outsourcing than in-house (Hale, 2006). In addition, the productivity of an organization will also be affected if employees leave work for training and development; therefore, it should be scheduled to be timely and significant (Hale, 2006).
In conclusion, training and development have many advantages to a company that employs it. Some of the benefits that may come out of using training and development outsourcing services include: enhancing competitiveness in the market, maintaining focus on other essential activities in the company and increasing the efficiency and productivity of a company. Moreover, with outsourcing training and development the risk and management involved will be evaded by the company and will be assumed by the outsource provider (Koulopoulos & Roloff, 2006).
References
Bansal, A. (2014). Training Process Outsourcing –Emerging Need of Various Medium and Small Sized Companies. International Journal of Innovative Science and Modern Engineering, 2(4), 1-3.
Belcourt, M. (2006). Outsourcing — The benefits and the risks. Human Resource Management Review, 16, 269-279. doi:10.1016/j.hrmr.2006.03.011
Galanaki, E., Bourantas, D., & Papalexandris, N. (2008). A decision model for outsourcing training functions: distinguishing between generic and firm-job-specific training content. International Journal of Human Resource Management. doi:10.1080/09585190802479579
Hale, J. A. (2006). Outsourcing training and development: Factors for success. San Francisco: Pfeiffer.
Koulopoulos, T. M., & Roloff, T. (2006). Smartsourcing: Driving innovation and growth through outsourcing. Avon, MA: Platinum Press/Adams Media.
Moskowitz, M. (2008). A practical guide to training and development: Assess, design, deliver, and evaluate. San Francisco: Jossey-Bass.
Saks, A., Haccoun, R. R., & Belcourt, M. (2010). Managing Performance Through Training and Development (5th ed.). Nelson College Indigenous.
Sofo, F. (2007). Transfer of training: a case-study of outsourced training for staff from Bhutan. International Journal of Training and Development. doi:10.1111/j.1468-2419.2007.00272.x
Wentland, D. M. (2007). Strategic training: Putting employees first. Amherst, MA: HRD Press.
