According to Wright McMahanG (1992), such training also motivate and satisfy the employees and encourage them to be more loyal to the firm. Training of the kind also helps develop external with customers, suppliers and distributors etc and internal relations with team members. Thus the overall effect is that the employees work more efficiently than ever-increasing the firm’s profit margins. Firms that do not consider training programs to be an essential part of their functioning suffer in the long run as they cannot operate at maximum efficiency which results in losses and higher employee turnover rate. According to Barney, J (1991, pp 99-120), this is because the employees are not satisfied in their jobs, there is communication gap between the management and other employees and the employees cannot handle sophisticated technology. Thus training and development have now become one of the reasons that could make or break a firm (Heathfield, S, 2006).Training and development of employees play a key role in the success of the company. The technological development taking place globally has to be incorporated in companies so that they can make their production more productive and efficient. Technological updates also enable the firm to compete with the local and global competitors and play a vital role in the survival of the company. According to Barney, J (1991, pp 99-120), in order to incorporate such technology firms have to have the right kind of labor and employees who have the ability to operate such technology. Thus it becomes eminent to continuously update the skills of the employees with their training and development. As per Mishra, J and Morrisey M.A (1990), without such updates the firm would not be able to incorporate technology in its system and thus would not be able to sustain competition.
Benefits of Employee Training for the Companies