top of page

HRM >

Training and Development

COVERS ALL MAJOR EXAM BOARDS

Teaching Business

Training

A clear guide to training, covering induction, on-the-job and off-the-job training, employee development and the business impact of improving skills.

10

Created by an experienced Head of Business and examiner
Quality Icon (White)_edited.png
AQA | Edexcel | Cambridge | Eduqas | WJEC | OCR | GCSE

KEY POINTS

  • Training helps employees gain the knowledge, skills and behaviours needed to perform their roles effectively. 

  • The main types of training are induction, on-the-job and off-the-job training, each with different costs and benefits. 

  • Effective training can improve productivity, quality, flexibility, motivation, customer service and retention. 

  • Training decisions should be evaluated by considering cost, time, relevance, business objectives and the risk of employees leaving.

KEY DEFINITION

Training

Training is the process of helping employees develop the knowledge, skills and behaviours needed to perform their current job effectively.

Main Explanation

Training is the process of helping employees develop the skills, knowledge and confidence needed to carry out their jobs effectively. It is a key part of human resource management because businesses need employees who can meet current operational needs while also adapting to future changes. 


Training can be used when a new employee joins, when a business introduces new technology, when customer service standards need improving, when health and safety rules change, or when the business wants to develop future managers. 


A useful starting point is to distinguish between training and development. Training is usually focused on improving performance in a current role, such as teaching a barista how to use equipment safely or helping a warehouse employee use a new stock-control system. 


Development is broader and longer term. It may prepare employees for promotion, leadership, multi-skilling, intrapreneurship or greater flexibility across the business. In practice the two overlap, but A Level answers should show that training is not only a short-term cost; it can also build long-term capability. 


The main types of training are induction, on-the-job and off-the-job training. Induction training introduces new employees to the business, its culture, policies, health and safety procedures, colleagues and the expectations of the role. This can reduce early mistakes, help new staff settle quickly and improve retention. 


On-the-job training takes place while the employee is doing the job, often through coaching, mentoring, shadowing or supervised practice. It tends to be practical, relevant and relatively low cost, but it can pass on bad habits if the trainer is weak and may reduce productivity while experienced staff support trainees. 


Off-the-job training takes place away from the normal workplace, such as workshops, online courses, external qualifications or apprenticeships. It can provide specialist expertise and fresh ideas, but it is often more expensive and may be less immediately relevant to the specific workplace. 


Training can create important benefits for a business. Better trained employees may work faster, make fewer errors, waste fewer materials and deliver more consistent quality. This can improve productivity and reduce unit costs, especially in labour-intensive businesses. Training can also improve customer service because employees are more confident, knowledgeable and able to solve problems. In sectors such as hospitality, retail, health care and transport, service quality is often strongly linked to the skills and behaviour of frontline staff. 


Training can also support workforce planning. If a business faces a skills gap, it may decide to train existing employees rather than recruit externally. This can be cheaper than hiring new staff and can improve loyalty because employees see opportunities for progression. Multi-skilling can also make the workforce more flexible, allowing managers to move staff between roles, departments or shifts as demand changes. 


This is particularly valuable when a business has seasonal demand, labour shortages or rapid technological change. However, training is not automatically beneficial. It can be expensive because the business may need to pay course fees, wages while employees are away from normal duties, travel costs, external trainers or the cost of reduced output during learning time. There is also an opportunity cost: time spent training could have been used producing goods, serving customers or completing other work. Some employees may leave after being trained, meaning the business does not gain the full return on its investment. 


Poorly designed training may also fail to change behaviour if it is too generic, not followed up by managers or not linked to clear business objectives. 


The best training method depends on the context. A restaurant opening a new branch may need induction and practical on-the-job training so staff quickly learn routines and customer service standards. A software business may need off-the-job courses or online certifications to develop specialist technical skills. A manufacturer introducing new machinery may need formal health and safety training as well as supervised practice. 


Strong evaluation should therefore consider the nature of the job, the size of the skills gap, the cost of training, how urgently skills are needed, staff turnover, the quality of trainers and whether the training supports wider business objectives such as quality, efficiency, growth or differentiation.

✎ EXAMINER TIP

Do not simply state that training improves motivation or productivity. Explain the mechanism: what skill is being improved, how that changes employee behaviour, and why that matters for the specific business context.

KEY FORMULAS(s)

Profit and Profitability Formulas

These key formulas help you calculate different profit measures and profitability ratios used in business.

Calculator Icon_edited.png

Gross Profit

Gross profit = Revenue − Cost of sales

The profit made after deducting direct costs.

!

Remember: profit shows how much money has been made, while profitability shows how efficiently revenue is being turned into profit.

DATA TABLE

Income Statement for North Coast Coffee Ltd

This statement shows how revenue is converted into gross profit, operating profit and net profit.

Revenue

£250,000

Output

Fixed Costs

Variable Costs

Total Costs

Revenue

Profit / Loss

  0 candles                      £1,200                          £0                                £1,200                            £0                          -£1,200

Net profit is the final profit remaining after all costs and expenses have been deducted from revenue.

Training Investment: Costs, Benefits and Business Impact

558baa33a4f00719f7ac319db59bf6ca.jpg

This chart shows how training investment can affect business performance.

WORKED EXAMPLE

Worked Example: North Coast Coffee

How many coffees must be sold to break even?

Paper and information icon_edited.png

Fixed Costs

£1,800

equity + long-term debt

Cogs Icon_edited.png

Break-even output = Fixed costs ÷ Contribution per unit

Contribution per unit = Selling price − Variable cost

£3.50 − £1.10 = £2.40

1

Pencil Icon_edited.png

Step 1: Calculate contribution

£3.50 − £1.10 = £2.40

Contribution per unit is the amount each coffee contributes towards fixed costs.

Target Aim Icon_edited.png

BREAK-EVEN OUTPUT:

750 coffees per month

Generic Yellow Bulb Icon_edited.png

EXAM TIP

Always explain what the number means for the business. Do not just calculate the break-even point.

Create a 5 pointed blue outlined star ic

Types of Training: Induction, On-the-Job and Off-the-Job

This diagram shows a clear visual overview of the main training types.

APPLICATION

McDonald's UK

McDonald's UK provides a useful example of how training can support a large service business that relies on thousands of frontline employees delivering a consistent customer experience. In fast food, employees need to work quickly, follow hygiene and safety procedures, use equipment correctly, deal with customers, prepare products consistently and respond to busy periods. Poor training could lead to slower service, food quality problems, safety risks, customer complaints and higher labour turnover.

McDonald's offers apprenticeship and career development opportunities where employees can earn while they learn and progress within the business. This is important because many restaurant employees may start in entry-level roles, but the business still needs a pipeline of crew trainers, shift managers, assistant managers and restaurant managers. Training therefore supports both current performance and future workforce planning.

For McDonald's, on-the-job training is especially relevant because employees need practical skills in the real working environment. A new crew member can learn from experienced colleagues while using tills, preparing food or following service routines. This can make training directly relevant and help the business maintain standardised processes across restaurants. However, the quality of on-the-job training depends on the skill and attitude of the trainer. If a busy restaurant cuts corners, poor habits can be passed on to new staff.

Off-the-job training and apprenticeships can add further value by developing broader knowledge, confidence and management skills. This may improve employee retention because staff can see a route to progression rather than viewing the job as short term. It can also improve motivation, customer service and the ability to fill management vacancies internally. The business benefit is not just better-trained workers; it is also a more flexible and loyal workforce.

The limitation is cost. Training requires time, supervision and investment, and employees may leave after developing valuable skills. For a business with high labour turnover, the return on training may be uncertain. However, in a large service business, consistent training can be essential because even small improvements in speed, accuracy and customer service can have a major effect across many restaurants. This makes McDonald's a strong example of how training can affect productivity, quality, retention, reputation and long-term competitiveness.

Greggs Bakery Cafe Retailer Value.jpg

This independent educational case study is not affiliated with, endorsed by or sponsored by Greggs plc. Any financial figures used alongside this example should be treated as simplified or hypothetical estimates created for teaching purposes.

Magnifier (Analysis)_edited.png

ANALYSIS

EXAM FOCUS

Analysis questions require you to examine a business concept or issue in detail, breaking it down into its component parts.  You should explain how and why something happens and consider its impact on the business.

Paper and information icon_edited.png

How to Approach Analysis Questions

1

Identify the key issue or concept

2

Break it down

3

Explain how and why

4

Reach a reasoned conclusion

Read the question carefully and highlight the focus of the analysis.

Consider the different factors, causes or impacts related to the issue.

Provide clear explanations using business terms and links points to context. 

Evaluate the overall implications for the business.

Generic Yellow Bulb Icon_edited.png

Example Analysis Question

North Coast Coffee is considering using break-even analysis before opening a second café.

Advantages

• Sales forecasts may be inaccurate.

• Assumes costs and revenue remain constant.

• External factors may reduce reliability.

• Ignores qualitative business factors.

Disadvantages

• Sales forecasts may be inaccurate.

• Assumes costs and revenue remain constant.

• External factors may reduce reliability.

• Ignores qualitative business factors.

Key Exam Tip

If you find it difficult to expand your answer and show the type of depth that an examiner is looking for in a top response, consider using the 'so what' approach. 

Tesco carry out market research - so what? - this allows them to better understand customer needs - so what? as a result Tesco can provide goods more likely to sell - so what? - this will increase Tesco profit and ensure higher levels of customer satisfaction - so what? this means that customers are likely to become more loyal to Tesco.

Avoid These Exam Traps

Students often lose marks on calculation and analysis questions by making these mistakes.  Watch out for them in your exam!

1

Red Exclamation Icon_edited.jpg

Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.

Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.

Tip:

Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.

2

Red Exclamation Icon_edited.jpg

Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.

Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.

Tip:

Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.

3

Red Exclamation Icon_edited.jpg

Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.

Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.

Tip:

Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.

Target Aim Icon_edited.png

Be precise.  Read the question carefully.  Show your working.

Small mistakes can cost big marks.

EXAM PRACTICE

Practice Question

Apply your knowledge of profit and profitability to answer this exam-style question.

1

MINI CASE STUDY

North Coast Coffee Ltd is a premium coffee business which sells freshly roasted coffee beans through its online store and a small chain of independent cafés. The business has experienced strong sales growth due to increasing demand for high-quality speciality coffee products.

The business generates annual revenue of £250,000. Its cost of sales, including coffee beans, packaging and direct production costs, totals £100,000. North Coast Coffee Ltd also faces operating expenses of £80,000, including marketing, employee wages, rent and administration costs. In addition, the business pays £20,000 in interest and taxation each year.

The owner, Mia Thompson, is reviewing the company’s profitability because rising wage costs and increased competition in the premium coffee market have started to place pressure on operating profit margins. She is considering increasing prices slightly in order to protect profitability while still maintaining customer demand.

Teaching Business Logo (Sharp Image).jpg

2

EXAM QUESTION

Analyse the possible reasons for BrightBite’s falling profit margins and evaluate strategies it could use to improve profitability.

3

HOW TO ANSWER

P

Point

E

Explain

A

Apply

C

Consequence

H

However...

4

MODEL ANSWER

P

Point

Increasing prices could improve the profitability of North Coast Coffee Ltd because each sale would generate a larger amount of revenue and potentially increase profit margins.

5

EXAMINER TIP

For full marks, make sure you analyse causes rather than just listing them, and evaluate realistic strategies with clear judgement.  THINK:  Which strategy would have the biggest impact and why?

Generic Yellow Bulb Icon_edited.png

CALCULATOR

THIS TOPIC · POWERPOINT RESOURCE

Training

CHOOSE YOUR EXAM BOARD:

Product Title

Instant download — school site licence included

  • Fully editable PowerPoint lesson

  • Relevant activities and practice questions

  • School site licence — share with your department

Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.

£3.00

Not sure yet?  Get a free sample.

Download a free pack of resources and see exactly what you're getting before you spend a penny. Used by hundreds of teachers to make their first purchase decision.

Sample PowerPoint lesson

Sample worksheet

No sign-up required

RELATED TOPICS

Continue Learning

Build your understanding by exploring other topics that connect closely with this one.

Profit and Profitability

Learn how to calculate profit and analyse profitability to measure the financial performance of a business.

bottom of page