Cost and Benefit ASDA

Teacher guide Costs and benefits of T&D – ASDA
Where does the lesson fit? This session would follow a general introduction to training and development in an HR or People in Business module.

Suggested resources & activities related to costs and benefits of training and development and ASDA • • • • • • Full ASDA case study Costs and benefits of T&D PowerPoint Training and development lesson resources (introductory session) ASDA crossword ASDA word search ASDA quiz

Suggested timings for the session 10 mins 5 mins 5 mins 15 mins 15 mins 15 mins Starter e.g. ASDA crossword Use the PowerPoint to discuss the topic area Read the case study Answer the questions Task – research the costs of a GP’s training course What have you learned?

Answers to questions 1. Using the last paragraph, identify what is expected from the investment in training and development at ASDA? The investment in T&D should help the business achieve its objectives and contribute to improving ASDA’s overall business performance. 2. Development of colleagues allows ASDA to fill 80% of appointments through internal promotion. Describe why it would prefer to do this than appoint workers from outside the organisation. • Internal promotion is more cost effective than external recruitment • Providing career progression is motivating for workers • Existing workers already know the culture and expectations of the business

The business will already know the candidates when internal recruitment is carried out

3. Explain the costs that may be involved in the training and development of General Store Managers at ASDA Costs may include: • The development of the dedicated Stores of Learning (SoLs) • Time out of store for training courses, and any necessary cover costs associated with this • Mentors’ and coaches’ time • Resources required e.g. training packs • Travelling expenses • Cost of training itself, especially off-the-job courses 4. Analyse the benefits to ASDA of having a motivated workforce Benefits to ASDA include: • Increases retention of colleagues • More productive and higher performing teams • Better quality colleagues and hence service – leads to competitive advantage • Higher morale and motivation – good for corporate image

• Filling appointment internally in 80% of cases What have you learned? Expected learning would include: • Benefits of training and development: o Increased productivity – leading to increased revenues o Increased levels of service o Better reputation o Lower costs as the workforce is more efficient and there is less wastage – leading to higher profits o Reduced labour turnover and absenteeism o The workforce becomes more flexible and better able to deal with change o Workers feel more valued and motivated o Workers have better job prospects and job security • Costs of training and development o Financial costs for training providers, expenses, administration and time out of work o Disruption to production when training takes place o The possibility that other firms will ‘poach’ staff when they are well trained