Training and Development (HSC SSCE Business Studies): Revision Notes
Training and Development
What are training and development?
Training refers to programs that develop skills, knowledge and attitudes to improve current work performance. It focuses on helping employees perform their existing roles more effectively.
Development refers to enhancing employee skills in line with the changing and future needs of the organisation. It prepares employees for future roles and responsibilities, not just their current position.
The Key Difference:
The distinction between training and development lies in timing and focus:
- Training = current skills for today's job
- Development = future skills for tomorrow's career
Why training and development matter in Australia
Australia faces significant labour market challenges that make training and development critical:
- Skills shortages – not enough workers with the right qualifications
- Skills mismatch – available skills don't match what businesses need
- Investment barriers – these problems slow business growth and investment
Ongoing business commitment to training helps overcome these challenges. When businesses invest in developing their workforce, they gain several advantages:
Benefits of Workforce Investment:
- Maintain competitiveness in changing markets
- Retain experienced employees who know the business
- Build organisational knowledge and capability
- Reduce recruitment costs
- Improve employee motivation and loyalty
Career planning and development in practice
BDO Australia case study
BDO Australia demonstrates effective career development through structured support rather than leaving career progression to chance.
The problem with unplanned careers: Many professionals progress without understanding their options or planning long-term goals. They move reactively from role to role, which becomes problematic when organisations see career planning as solely the employee's responsibility.
Worked Example: BDO's Comprehensive Career Support Model
BDO Australia has implemented a multi-layered approach to employee development that addresses career planning at every stage. The firm uses five integrated strategies:
1. Structured graduate programs Early career accountants receive formal training and support through professional qualifications. This represents significant investment by both employer and employee during formative career years.
2. Performance appraisal system Six-monthly discussions that include:
- Reflection on achievements and progress
- Feedback on performance
- Guidance on future goals and next steps
- Discussion of career ideas and options
- Documentation of short-term and long-term goals
3. On-the-job development Continuous appraisal, coaching and mentoring throughout employment.
4. Learning and development curriculum Comprehensive programs tailored to different career stages.
5. Career Development Workshop An innovative program for qualified accountants that focuses specifically on career planning. Participants:
- Reflect on their career progress
- Learn about various career options within and outside BDO
- Receive tools and frameworks for individual career planning
- Gain support to make informed decisions
Key stakeholders in career development:
BDO involves multiple parties in supporting employee careers:
- Direct managers and supervising partners (active role)
- Senior partners (guidance and mentorship)
- Mentors (advice and support)
- HR and learning teams (programs and resources)
Collaborative Career Development
This collaborative approach ensures employees maintain control over their careers while receiving substantial organisational support. Success comes from shared responsibility, not leaving employees to navigate career decisions alone.
Strategic options for addressing skills needs
Businesses must systematically evaluate several factors when choosing training and development strategies:
- Current business needs
- Supply of required skills in the economy
- Demand for specific skills
- Changing nature of work
- General employment patterns
The shift to a service economy
Australia's transition from manufacturing to services has made many traditional production skills obsolete. Businesses must decide which skills to develop internally and which to source externally.
Strategic options available
Businesses can choose from multiple approaches to address skills gaps:
Internal Development Options:
- Invest in in-house training and development programs
- Create structured learning pathways for employees
- Build capability gradually within the organisation
Retention Strategies:
- Retain retiring experts on part-time contracts
- Offer flexible work structures (especially for women)
- Provide career development opportunities to reduce turnover
External sourcing:
- Recruit staff with specific required skills
- Sponsor overseas migrants for critical shortage areas
- Build networks or alliances with firms possessing specialist skills
Alternative arrangements:
- Insourcing – delegating work to other staff within the business or sharing staff with other firms
- Outsource specialist functions to external firms or agencies (including overseas)
- Collaborate with other businesses to access needed expertise
Exam Tip: Analysing Training Strategies
Questions about training strategies often require analysis of both benefits and costs. Consider:
- Immediate versus long-term impacts
- Financial costs versus capability building
- Flexibility versus control
Always evaluate from multiple stakeholder perspectives.
Future work trends
Understanding future employment patterns helps businesses plan appropriate training and development strategies.
Predicted trends for similar economies
Research from countries like Canada identifies several key trends:
Sector Changes:
- Complete transition to service-based economy
- Full automation of primary sector jobs (farming, mining, forestry)
- Reduced manufacturing employment
Growth Areas:
- Social professions: teachers, nurses, homecare workers
- Technology-related roles not yet invented
- Roles requiring human interaction and care
Work patterns:
- Virtual work away from traditional workplaces
- Elimination of commuting requirements
- Greater flexibility in work location and timing
Exam Tip: Linking Skills to Industry Context
When discussing future skills needs, always:
- Link to specific industry sectors
- Explain how technological change drives skill requirements
- Consider both opportunities and challenges created by trends
Skills employers seek
Understanding employer priorities helps businesses target their training programs effectively.
Soft skills in high demand
Employers of university graduates particularly value:
- Communication skills – both written and verbal
- Teamwork ability – collaborating effectively with others
- Influence skills – persuading and leading others
- Critical thinking – analysing information and problems
- Problem-solving – finding solutions to complex issues
- Attention to detail – accuracy and thoroughness
- Professional writing – clear business communication
These 'soft skills' remain valuable across all jobs and industries, making them important training priorities.
Hard skills remain important
While soft skills are increasingly important, technical abilities and industry-specific knowledge also remain essential. The most effective training programs develop both types of capability.
Balanced Skills Development
Successful employees combine soft skills (transferable across roles) with hard skills (technical and industry-specific). Training programs should address both dimensions to maximize employee effectiveness and career flexibility.
Exam technique guidance
When Analysing Training and Development Strategies:
- Distinguish clearly between training (current skills) and development (future skills)
- Consider costs and benefits for both employees and businesses
- Link to business objectives – explain how training supports broader goals
- Use business examples – reference real cases like BDO to support arguments
- Evaluate long-term impact – development programs may cost more initially but build competitive advantage
- Address stakeholder perspectives – consider effects on employees, managers, customers, and shareholders
Common command words:
- Explain – give reasons why training matters or how it works
- Analyse – break down causes and effects of training strategies
- Evaluate – judge effectiveness considering multiple perspectives and evidence
- Assess – make judgements about the value or importance of training approaches
Key Points to Remember:
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Training develops current skills for existing roles; development prepares employees for future roles and organisational changes
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Australian businesses face skills shortages and mismatches that effective training can address
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Successful organisations take shared responsibility for career planning rather than leaving it solely to employees
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Businesses have multiple strategic options: internal development, retention, external recruitment, insourcing, outsourcing, or collaboration
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Future work trends point toward service economy dominance, automation of traditional jobs, and virtual work arrangements
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Employers value both 'soft skills' (communication, teamwork, influence) and 'hard skills' (technical, industry-specific capabilities)
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Effective training strategies align with business objectives, consider costs and benefits, and address both current and future needs