Do Employee Incentives and Training Improve Quality?

In this blog post we are going to discuss the advantages of transparency along with cross-functional integration when it comes to external partners, which are namely suppliers. We have discovered that the organisations who have established training for suppliers usually experience improved financial benefits due to quality efforts.

Training offers a language that is common and assists suppliers to understand impacts like defects or any other setback, such as a delay, causes to the end customers, which ultimately results in a focus that is unified for the actual customer, along with an enhancement in financial benefits.

The same ideas behind common language, transparency, along with an understanding about the impacts of roles based on quality need to also be understood and maintained by the employees of an organisation. For this reason, in this article, we look a lot more closely at relationships between employee incentives and training.

Training Employees and the Financial Value

Training programs led by data protection consultants assist in developing competencies and ensure that the employees have an overall understanding about their roles in the creation of quality for customers and to establish a culture that is quality-focused. For this reason, the respondents were requested to indicate whether they had a quality-related formal training program. Even though most of the current organisations don’t have formal training programs, a lot more organisations (43%) have started to invest in training programmes compared to 2013 with a percentage of 32%.

Even though it is clear that there is always intrinsic value financially from providing quality training, there are still questions that remain unanswered such as: who should be receiving such training and what type of training should be provided?

Deciding Who Needs Training

Most of the respondent organisations (56%) provide (compensation for training that is externally based or direct training) quality-management training for their employees that have involvements in quality-actives. Under half of these respondent organisations (44%) also provide quality-related training for all staff members, which is driven likely by needs to embed a culture that is quality-focused throughout the organisation.

To gain an understanding about where the organisation should be focusing their own training resource in association to ROI, we conducted an analysis against employees that were offered this type of training and the financial benefits of this quality for the organisation.

Even though conventional wisdom involves increasing the quality training for every employee in order to create shared perspectives along with bolstering a quality culture, analysis has indicated drop-offs in financial benefits for the organisations who offer this type of quality training for all their employees. Rather, the biggest elevation in the financial benefits is derived from offering training to the quality-related employees and to those that have requested the training specifically.

The Most Important Topics for Training

Most organisations have focused the training on the quality fundamentals, ISO, auditing, quality tools and quality-management principles. However, only a few of these organisations include the training based on more of the customer-value concepts like customer experience, lean and NPS (Net Promoter Score). To gain an understanding on what type of training supports the increased financial advantages from quality, an analysis was run against the training type offered and the financial benefits of this quality for the organisation.

We found that just about any training type discussed in this survey was linked to overall improvements in financial benefits. However, the organisations that offer training on the customer-value related concepts such as NPS and Six Sigma are more prone to reaping increased financial benefits. This is obvious given relationships between financial benefits and customer value. Organisations who use quality in the form of a competitive-differentiators based on benefiting the customers and enhance their brand image, experience improved financial benefits.

Conclusion

The best-in-class organisations use training in order to drive a commitment towards quality and assist their employees in understanding their roles when it comes to quality, along with the way they impact end customers along with driving value. However, organisations need to keep in mind the purpose behind their efforts towards quality before they make a decision on incentives, the training types, and even which of the employees should be targeted for this training type.

If the goals of the organisation involve creating a quality culture that is widespread, that company should train every employee on these quality fundamentals, and impact on customers, which will reap the highest benefits. On the other hand, if an organisation is leveraging quality specifically to offer customer value along with potential price-premiums, then it needs to consider incorporating the training that is aimed towards customer experiences along with related concepts like NPS and lean.