The impact of training and development on employee performance : a case study of Capitec bank in Durban

Abstract

Employees are the bloodline and a major asset of any organization. The active role they play towards a company’s success cannot be underestimated as the quality of work produced by the company depends on the quality of its human resources. As a result, it is imperative to equip these unique assets through effective training and development to maximize job performance. Therefore, employee training and development is a major and vital issue facing all organizations, particularly in the banking industry of South Africa because of the shortage of skilled employees. This is largely due to the lack of industry-related skills that graduates lack when entering the working industry. Training and development must thus be relevant and directly linked to desired outcomes. Organizations are facing challenges such as extensive competition, the continuously changing technology, globalization and the ever-changing customer needs which have added more challenges for organizational performance. Hence, in order to meet these challenges, organizations must train and develop their employees. The objectives for the study were to explore the relationship between employee training and development and employee performance; to establish whether there are organization organizational issues that are constraints to employee performance; to establish the effect of training and development on employee performance and to make recommendations on employee training and development to improve employee performance to accomplish these objectives. The study employed a descriptive research design by means of a quantitative research strategy with a positivist philosophy. Data was obtained through a structured questionnaire with a 5-point Likert scale. The target population for this study comprised of all the 204 services consultants of Capitec Bank employed within the City of Durban.This study used the non-probability sampling procedure through purposive/ judgmental sampling method. The research showed that Capitec Bank employees are satisfied with the training they received for them to perform their day- to-day duties. Findings showed that training allowed them to sell better, acquire information and manage change when they needed to. The findings also showed that there were developmental issues that the bank faced as a large portion of the respondents felt that there were unaware of development opportunities within the bank. The study showed that organization organizational issues such as psychological stress also played an impact on the performance of employees. The following recommendations were made for the improvement of Capitec Bank. The bank should implement a development framework that will showcase the different career opportunities that are available within the establishment and steps on how employees can be promoted to these positions. This is a cross-training initiative that will allow employees to acquire skills from different departments is also strongly recommended. The study also recommended that the Capitec Bank Human Resource Department should conduct regular consultations with employees so that the company is kept aware of organizational issues that could constrain employee performance.