Why It’s Crucial to Train Your Employees
Why you should train your people
In what might seem an unusual post by a leading business analyst and venture capitalist, Ben Horowitz, of Andreesen Horowitz, writes in businessinsider.com
“Almost everyone who builds a technology company knows that people are the most important asset. Properly run start-ups place a great deal of emphasis on recruiting and the interview process in order to build their talent base. Unfortunately, often the investment in people stops there.”
Horowitz’s own experience in training sounds all too familiar:
“When I first became a manager, I had mixed feelings about training. Logically, training for hi-tech companies made sense, but my personal experience with training programs at the companies where I had worked was underwhelming. The courses were taught by outside firms who didn’t really understand our business and were teaching things that weren’t relevant.”
A turning point in Horowitz’s perspective on training came through Andy Grove’s High Output Management, specifically the chapter titled “Why Training is the Boss’s Job.”
As Director of Product Management at Netscape, Horowitz decided to put his new found inspiration to work and produced a guide titled Good Product Manager/ Bad Product Manager in an attempt to educate his staff on how to bring value to product management.
“I was shocked by what happened next. The performance of my team instantly improved. Product managers that I previously thought were hopeless became effective. Pretty soon, I was managing the highest performing team in the company. Based on this experience, after starting Loudcloud, I heavily invested in training. I credit that investment with much of our eventual success. And the whole thing started with a simple decision to train my people and an even simpler training document.”
Horowitz sees four key benefits to well-designed well-delivered training:
- Productivity
- Performance Management
- Product Quality
- Employee Retention
On Productivity Horowitz credits Grove with doing the math for the amplification of benefits from training:
“Training is, quite simply, one of the highest-leverage activities a manger can perform. Consider for a moment the possibility of your putting on a series of four lectures for members of your department. Let’s count on three hours preparation for each hour of course time—twelve hours of work in total. Say that you have ten students in your class. Next year they will work a total of about twenty thousand hours for your organization. If your training efforts result in a 1 percent improvement in you subordinates’ performance, you company will gain the equivalent of two hundred hours of work as the result of the expenditure of your twelve hours.“
On Performance Management Horowitz sees training as laying the foundation in understanding between the manager and the employees in terms of job responsibilities and expectations:
“If you don’t train your people, you establish no basis for performance management. As a result, performance management in your company will be sloppy and inconsistent.”
On Product Quality, Horowitz cites a common instance of where a push to cater to an urgent demand forces training out of the process leading only to an unnecessary and expensive reinvention of the wheel:
“As success drives the need to hire new engineers at a rapid rate, companies neglect to train the new engineers properly. As the engineers are assigned tasks, they figure out how to complete them as best they can. Often this means replicating existing facilities in the architecture, which lead to inconsistencies in the user experience, performance problems, and a general mess. And you thought training was expensive.”
Last but not least, Horowitz speaks to the issue of Employee Retention. Using his own experience at Netscape as a real-life example, Horowitz recounts an instance where he analyzed exit interviews to determine why people were leaving:
“1. They hated their manager – generally the employees were appalled by the lack of guidance, career development and feedback they were receiving.
2. They weren’t learning anything – the company wasn’t investing in the employees.”
Horowitz recommends that training programs focus on the two essentials: functional skills and management. Functional training addresses knowledge and skills most relevant to the employees. Management training first addresses what is expected of managers and follows up with how managers can accomplish what is expected. Implementation is a key issue here. Horowitz warns of the temptation to put training off due to lack of time. Interestingly he returns to Grove when he reasserts that management training is fundamentally and unavoidably a role of the corporate leader:
“As Andy Grove writes, there are only two ways for a manager to improve the output of an employee: motivation and training. Therefore, training should be the most basic requirement for all managers in your organization. …Managing the company is the CEO’s job. While you won’t have time to teach all of the management courses yourself, you should teach the course on management expectations, because they are, after all, your expectations.“


