How and why does a business train and develop its employees?
How businesses train and develop employees (formal and informal training, self-learning, ongoing training, target setting and performance reviews) and why they do so (the link between training, motivation and retention, and retraining to use new technology).
A focused answer to Edexcel GCSE Business 2.5.3, covering how businesses train and develop employees (formal, informal, self-learning, target setting, performance reviews) and why (the link to motivation, retention and using new technology).
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What this dot point is asking
Edexcel wants you to explain how businesses train and develop employees and why they do it, including the links between training, motivation and retention, and retraining for new technology.
How businesses train and develop employees
Businesses use a mix of methods. Formal training is structured and often certified, good for important or technical skills. Informal training happens naturally on the job as employees learn from colleagues. Self-learning lets employees develop at their own pace. Ongoing training keeps everyone's skills current as the business and technology change. Target setting and performance reviews support development by setting clear goals and regularly checking progress, identifying where more training is needed. Together these build a more capable workforce.
Why businesses train and develop employees
The benefits of training run through the whole business. Better-skilled employees are more productive and produce higher quality, which helps the business compete. As technology changes, retraining lets staff use new systems, so the business does not fall behind. Crucially, Edexcel highlights the link between training, motivation and retention: training shows employees the business values them and makes them more capable, which motivates them; and motivated, well-trained staff are more likely to stay, reducing the costly cycle of recruiting and training replacements. The main drawbacks are the cost (time and money) and the risk that trained employees leave for a rival, but for most businesses the gains in productivity, motivation and retention outweigh these.
Try this
Q1. State one method of training that involves learning on the job from colleagues. [1 mark]
- Cue. Informal training.
Q2. Explain one reason why training employees can improve staff retention. [3 marks]
- Cue. Training makes employees feel valued and more capable (motivating them), so they are more satisfied and less likely to leave.
Exam-style practice questions
Practice questions written in the style of Pearson Edexcel exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
Edexcel 20202 marksState two methods a business could use to train its employees. (Paper 2, Section A)Show worked answer →
A 2-mark state question, one mark per correct method.
Any two of: formal training, informal training, self-learning, ongoing training, or training linked to target setting and performance reviews.
Markers want two distinct training methods from the specification. Choose two clearly different ones, for example "formal training" and "self-learning".
Edexcel 20216 marksDiscuss the benefits to a business of training its employees. (Paper 2, Section B)Show worked answer →
A 6-mark discuss question rewards developed analysis with a judgement.
Chain one: training improves employees' skills, so they work more efficiently, make fewer mistakes and produce better quality, raising productivity and helping the business compete, and it lets staff use new technology effectively.
Chain two: training motivates employees (they feel valued and more capable) and improves retention (trained, satisfied staff are less likely to leave), which reduces the cost of recruiting and training replacements.
A strong answer judges that training brings real benefits to productivity, motivation and retention, but notes it has costs (time and money, and a risk that trained staff leave for rivals), so the benefits must outweigh the cost. Markers reward developed analysis, not a list of methods.
Related dot points
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A focused answer to Edexcel GCSE Business 2.5.4, covering the importance of motivation (attracting and retaining staff, productivity) and the financial methods (remuneration, bonus, commission, promotion, fringe benefits) and non-financial methods (job rotation, job enrichment, autonomy) businesses use to motivate employees.
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A focused answer to Edexcel GCSE Business 1.5.2, covering the types of technology businesses use (e-commerce, social media, digital communication, payment systems) and how technology influences sales, costs and the marketing mix, and how businesses respond.
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Sources & how we know this
- Pearson Edexcel GCSE (9-1) Business (1BS0) specification — Pearson Edexcel (2017)