A division of Lloyds TSB bank has almost doubled its income and slashed its costs after setting up a new training programme focusing on people rather than processes.
Employees are now more confident they know where the organisation is going and as a result staff turnover has fallen from 22.3 per cent to 5.9 per cent a year, according to Lloyds.
The training-led changes have also improved efficiency, with a computer system roll-out recently being completed in five months instead of the expected 18.
Lloyds is one of a group of companies profiled by the Policy Research Institute and Human Re- source Development Unit at Leeds Metropolitan University.
Its recently released report, called Learning Pays, includes case studies showing how production rates improved following training changes.
Tony Welch, HR director of East Midlands building firm Galliford, said their new system had helped stabilise workload by moving away from the uncertainties of competitive bidding and into partnering with clients. Customers now benefit from savings of £75,000 per contract resulting from lower design costs, and early completion.
Sutcliffe Catering, the contract catering arm of Granada Restaurants, reports big improvements in employee morale and retention since it revamped its chef training programme. Trevor Nelson, food services training manager, said the business has exceeded its target of a 20 per cent annual growth rate as a result.
The study was carried out for the National Advisory Council for Education and Training Targets. Professor Mike Campbell who headed the research says, "The key message of this report and these case studies is that training is an investment in the future and an investment in success.
"The more employers and organisations recognise the value of training and the benefits it can bring, the more successful their organisation will be."
By Kathy Watson