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Executives say employee training is important, but few companies do it well.
Scott Leibs, CFO Magazine
April 1, 2010
A new survey from McKinsey & Co. paints a decidedly mixed picture of corporate training initiatives. On the one hand, executives rank "capability building" as a top priority — 15% of senior leaders, in fact, rate it as the top priority, while 55% place it in the top three. But when it comes to actually employing various training methods to develop certain skills, on-the-job training is by far the dominant approach, used twice as often as more-formal and more-structured methods. Lack of resources and funding inhibit such efforts, but so too do organizational resistance to change and inconsistent application of training methods. Fewer than 10% of companies develop training efforts with an eye toward competitors' capabilities; those that do tend to achieve more-positive results.