Competent and confident employees are the key element for any business hoping to remain successful in tough times. One way companies can stay competitive is to implement training and development technologies that help to maintain a high level of knowledge and understanding among their employees. However, despite recent trends pushing us toward an economy increasingly dominated by knowledge-based activities, many businesses are not currently making the necessary investment in their employees.
The East/West divide
A new study by Paul Mizen, economics professor at the University of Nottingham and fellow, Centre for Growth and Business Cycle Research, University of Manchester, entitled ‘Knowledge - The New Commodity,’[1] shows that in the midst of the current economic crisis, many of the world’s top economies, like the UK and US, have been decreasing their focus and investment in knowledge development. In fact, in 2008, more companies actually reported a decline rather than an increase in staff development in these industrialised countries.
In the developing markets of Asia, however, research has shown that fewer firms are planning to decrease their training budgets and staff investments and are coping with the recession by reducing budgets elsewhere. These results suggest that by keeping a stronger focus on employee knowledge development, emerging market countries are putting themselves in a viable position to surpass industrialised countries come the economic upturn. Companies everywhere should take note of this, whether they are part of a well established industrialised nation or are new to the global market, and invest in their employees to better prepare themselves for the future.
How to select the right knowledge assessment solution
Though these findings shed light on the importance of companies’ investment in their knowledge base, employers still need to figure out a method to accomplish this.
One simple and effective way of doing this is by administering regular online assessments that are completely customised so they test employees’ understanding, competence and confidence in performing their jobs.
Any company considering implementing knowledge development and assessment technology, however, should firstly ensure they approach a supplier who can offer consultancy services, as well as technology.
These experts can advise customers on their technology needs and ensure they are investing in the right system. A large transport company employing thousands of workers may have very different requirements from a medium-sized firm of accountants. The consultants define what is needed and then work with companies to create and design customised assessments based on every job role within the company.
Another important element to consider is whether or not the technology is compatible with its existing corporate IT systems. A system that is based on Microsoft .NET technology would be a good option because it is web based and can be accessed through a web browser simply and easily.
Another thing to check is whether the system’s user interface is simple to use and easy to navigate, which will allow for minimal training.
Assessment mobility within and without the enterprise is essential. Companies should also consider if they need to conduct assessments in different languages and countries, and if this is the case, they need to ensure the system has multi-lingual capabilities. They might also want a system which can be configured to meet their requirements and that even looks and feels like their other corporate systems.
Some knowledge development programmes capture and analyse assessment results in real time and provide individuals with instant feedback on their performance. They can also store these reports and allow employees to access them with the use of a password.
Select advanced knowledge development programmes will even suggest specific e-learning modules for individuals as they are being assessed.
This means that knowledge gaps can be addressed quickly with targeted training that meets the needs of an individual. This eradicates the need for expensive ’one size fits all’ training so managers can be confident their staff are getting more efficient training to improve performance and reduce misunderstanding.
Cost of employee misunderstanding
Employee misunderstanding resulting from a lack of training and knowledge assessments can be very costly for businesses; not only in terms of time and money, but also customer relations and business reputation. Additionally, a lack of knowledge and understanding of corporate and industry regulations could potentially result in high costs for the company. Business regulations are constantly changing within every industry, and if employees are not conducting their business in compliance with new laws and policies, they are putting their company at risk of being fined and incurring other such penalties.
Other benefits of knowledge assessments
Another benefit of assessment programmes and technologies is that they help identify a company’s top employees, the go-to people that have mastered the ins and outs of the business and are a consistent and reliable resource for other employees. The discovery of such knowledgeable employees is vital for employers, especially when companies are faced with difficult lay-off decisions, as they help to determine which employees are the most valuable to their business and should be retained. Identifying these employees is important, not only in order to know who can help keep the company afloat, but also who will be able to pass on vital industry knowledge and experience to new employees when the company starts hiring again.
Until the economy does pick up, however, knowledge assessments can be used to help executives appropriately redistribute job roles and delegate additional responsibility to those who deserve and can manage it. They also provide valuable insight for employers to administer other forms of intervention, such as redeployment, coaching, mentoring, and training for certain employees. And with today’s unstable economic climate, it’s critical for executives to have a clear view of their workforce so they know how best to utilise their staff. Similarly, such assessment technologies offer insight for employees and are something staff members should be requesting of their employer so that they can be assured that they are up to date on company policies and industry standards. They also help employees know that they are doing their job accurately and reaching their full potential - something everyone would like to be assured of during such rocky times.
Being able to improve and build upon current training programmes is another benefit of assessment based knowledge development programs and technologies. By learning what employees are retaining and what areas need more attention, executives can deliver more specific and effective programmes in the future. This kind of information will help better prepare future employees for their job roles, and could save companies the time and money that would otherwise be lost in misplaced and ineffective training programmes.
Competitive advantage
In today’s world where knowledge is power, it should come as no surprise that the most valuable asset for businesses is the knowledge of their employees. As a growing number of organisations in both emerging and well-established markets are realising the importance of maintaining a knowledgeable staff, it is all the more important for them to implement knowledge training and development technologies in order to stay competitive on the global scale. Such technologies help identify key trends within the workforce, such as where knowledge is concentrated and where gaps remain, while also providing the insight to help executives improve business practices and reduce risks, two essential goals any successful executive should strive toward.