Training Needs Analysis A supermarket is a unique place in that every person in a community will use it for daily food and essential supplies shopping unlike most other businesses that have a specific target audience. Understanding this difference is important in any attempt to increase sales and have a greater profit margin. Each store has a unique clientele that shop there and in some cases there are specific needs that must be catered to achieve strong customer satisfaction. It is possible that not completely understanding this in combination with a gap in certain skills areas and high employee turnover are key reasons that sales have dipped that last two quarters and some stores are receiving low customer satisfaction scores. In an effort to fix these problems senior management believes training and development may help decrease employee turnover and increase customer satisfaction, which will increase sales and meet sales goals. Human Resources, along with Training and Development, will attempt to identify indicators that show the specific problems experienced by the affected stores can be resolved through training, design a needs assessment plan identifying three specific training initiatives and potential outcomes from the three training initiatives, and using this select one specific training initiative and develop a budget of projected costs to implement this initiative. Having already identified the problems the three stores are having (missed sales goal for past two quarters, low customer satisfaction scores, high employee turnover rate) the first directive is to establish goals the company wants to achieve. These goals are simply the opposite of what the problems are. The stores in the region want to lower employee turnover, which is one factor in raising customer satisfaction, which will in turn raise sales profits. A need assessment plan will help identify any specific needs and training and developmental gaps in employees. A need is the gap between ‘what is’ and ‘what should be’ (Comprehensive Needs Assessment, 2001). A needs assessment plan, or training needs assessment, will answer a variety of questions about the issues; the who, what, when, where, why, and how (Comprehensive Needs Assessment, 2001). The Training Needs Analysis involves the following: * Identify target group (employees) * Gather and Review job descriptions of target group * Compare industry standards (sales profit margins, customer satisfaction scores, employee turnover rates) * Identify training gaps * Define problems faced by employees in achieving standards * Identify solutions * Calculate cost and time required for training * Positive Return of Investment (R.O.I.) required for implementation of training or other recommendations * Describe benefits achieved from training * Explain how effectiveness of training will be measured
Identify Target Group
The target group is this situation is all employees, both management and non-management personnel. Each employee has a responsibility to provide the best customer service so that each customer leaves completely satisfied and will be willing to return to that particular store to shop. While each employee has an individual responsibility to provide exceptional customer service there are certain employees who have the potential to have a more lasting effect on the customer. Employees such as front-end employees, like door greeters, helper clerks, and cashiers, have the most opportunity for lasting customer service satisfaction. Receiving better, more in depth, training on how to better interact with customers could go a long way in achieving higher customer service scores.
Gather and Review job descriptions An important part of the needs assessment is identifying individual position job descriptions and compare it to what actually is going on in store on a daily basis. An update to these roles and responsibilities may be necessary in order to better accommodate customer and store needs. A few small adjustments to responsibilities may be enough to bump up customer satisfaction a few base points.
Compare Industry Standards While doing a need assessment it is important to know what the industry standards or average is for each need/issue measured so you can set appropriate goals. These issues include certain financial measurements like sales and profits, customer satisfaction scores, and employee turnover rates.
Identify Training Gaps One way to assess some of the training gaps is to poll affected stores employees on what they do on a daily basis and compare it to what the company has listed as responsibilities. Another way to identify any training gaps is to reassess company policies that dictate customer interactions (such as breaking down a larger package of hamburger into a smaller amount for a customer who doesn’t want the full amount). Policies like this indicate a knowledge gap and may also be corrected by additional training.
Define problems faced by employees in achieving standards There may be any number of problems that arise that affect customer service, and in turn sales, that is correctable and teachable by means of training and coaching. These problems may include an employee being unfamiliar with company policy, products, or not having received enough quality orientation training upon initial employment. These can be overcome with effective training and coaching by management or other employees with tenure. Other problems, which are more difficult to address by training or coaching, may include employees being lackadaisical.
Identify Solutions Solutions to improving customer service scores may include additional eLearning and one on one coaching with management. Doing so will increase employee knowledge and help employees interact in a more positive manner that results in more desirable customer service scores. Customer Service programs may be developed to measure customer satisfaction and used in conjunction with additional training to raise these satisfaction scores and help increase sales. Another solution, albeit a more expensive one, is to hold a job fair or hiring event to hire new employees who better fit the company culture, values and direction.
Calculate cost and time required for training
Calculating the cost of developing training can vary quite a bit depending on whether or not there is already training materials available or if all material is new and development is starting from scratch. Generally speaking though there is a 34:1 hour of development instructor led training, 33:1 of PowerPoint to eLearn conversion, and 220:1 standard eLearn development (Clark, n.d.). Depending on the detail put into developing the new eLearn materials, an average training video takes anywhere from $200-3000 (Clark, n.d.). Professional slides (PowerPoint) vary in price from $15-50 per slide depending on the detail and special effects involved (Clark, n.d.). If designing a new eLearn from scratch a professional eLearning designer may be hired to expedite the process. The average cost per hour to employ them is $37/hour (based on a salary of $78,000 per year) (Clark, n.d.). Other costs involved with training depend on the time actually spent in training. In a similar situation, Verizon Wireless discovered that it takes 40-80 hours of development for every 1 hour of eLearn material and has a total cost of $15-30,000 for every one hours (Clark, n.d.) So for example, if an employee makes $10/hour and training takes ½ hour, then the cost per person at that pay rate is $5. Multiplied by, say, 100 employees, runs a cost of $500 for the training. Since senior management wants multiple things accomplished we will assume that 1-½ hours will be required for all training, though no additional training hours will be allotted for this new training except for new hires. The cost of the training and development will be high with up front costs but will have a long term savings on training and will help to increase profits which should net a positive return of investment for the company.
Describe benefits achieved from training
Simply put, an ideal situation is that the training materials are effective in improving customer service and improving communication skills that will benefit improved customer service. This in turn will ensure that customer service scores increases as well as sales go up for all stores involved.
Explain how effectiveness of training will be measured
Customer service scores will be measured by online or in store surveys that rank the store and its employees on a number of items. Sales increases will be measured by comparing current month sales to previous month and previous years for same month. Employee turnover will be measured the same as sales, but for employee attrition instead.
Specific Training Initiatives
Senior management wants three specific training initiatives recommended to be put into action to accomplish its goals. Human Resources recommends: 1. Additional or new eLearn material be developed and implemented 2. Human Resources undergoes a revamp of employee duties and job descriptions to better fit store needs 3. Stores hold a job fair/hiring event to add on new employees who may better fit company culture, values, and direction eLearn Initiative
Human Resources recommends first doing a recap of major responsibilities for each employee group (cashier, helper clerk, bakery clerk, ect) so that each responsibility and task is fresh in the minds of employees. The eLearn needs to cover how to better communicate with customers while covering an update of company customer service programs. There should also be additional training that goes over what is and is not acceptable to do in regards to customer service and interactions. Refreshing or introducing company policies in the training will also help employees know what to and what not to do. This will give employees a greater knowledge of their job and gives employees the tools to better execute their responsibilities.
Revamp of employee duties and responsibilities initiative
While this initiative may not be the sole initiative chosen, perhaps it may not be at all, but Human Resources does recommend a review and update of employee duties to better fit store and department needs. This may be done by polling store employees of what their daily duties are as well as speaking with store management seeking their input. This too will give employees a greater knowledge of their job and help them to better execute their responsibilities.
Job Fair/Hiring Event Initiative
A job fair or hiring event is a good way to bring on new employees to the staff. Employees responsible for holding event can save the company money in the long run by pre-screening individuals at first meeting and reduce the risk of going through multiple interviews before finding the right person to hire. They can use these events to identify specific traits sought after by store and senior level management. Once hired, employees can be on-boarded where company values and policies are engrained which will lower the performance gap that is occurring in some stores. This initiative will cost more in the short run but will pay dividends in the long run having employees who hold the same values as the company work and interact with customers.
Final Recommendations and Implementation
Human Resources recommends adopting the eLearning initiative. Determining costs, as previously stated, can vary depending on the materials already available and infrastructure already in place. The cost also depends on if any new employees will be needed during the duration of the program or if it can be developed and implemented with the current staff. That being said, to determine the total cost a breakdown will be needed of individual development, hardware, administration, management, delivery, support, and employee pay costs (Clark, n.d.). Development and hardware are just start up costs, while the rest are annual or recurrent costs. Using the Verizon Wireless case study as a guide, senior management can expect to spend anywhere from $15-30,000 to develop one hour of eLearning (Clark, n.d.). The total cost may run up to as much as $50,000 to develop but the cost of it will be easily absorbed by any increase in sales the company receives and the increase in customer satisfaction will only lead to further positive gains in sales and give more reason as to why additional eLearn training is necessary and recommended.

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