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A Quick Study | by Dr. Jerry Newman

Why Training Works
Investments in selection and training procedures have significant impacts.

I promised last month that I would keep you informed about major behavioral science research relevant to you. Jerry Ferris, a big name in the field of people research at Florida State University, just sent me an article that is likely to appear in our No. 1 journal (Journal of Applied Psychology) sometime this year. I think the results are hugely important to the quick-serve industry, so I’m going to share the major findings with you.

This is a study of 861 stores from one of the major brands. The research asked whether investments in new selection and training procedures had significant impacts on customer satisfaction, employee retention, and bottom-line financial results. The answer was a resounding yes! Let me tell you about the changes in people practices and the good things that resulted.

First, this brand implemented a paper and pencil test that measured five things: 1) customer focus, 2) work ethic, 3) commitment, 4) teamwork, 5) and fundamental skills (e.g., comprehension of written information). The first section of the test asked about past behaviors. The second section measured personality traits using standard Big Five scales (the Big Five are personality traits commonly thought to capture the important dimensions of personality). The third section was specific to the fast-food industry, putting applicants in common situations and asking what they would do. For example:

While mopping the floors behind the counter, you spot a five-dollar bill hidden under one of the shake machines. What do you do?

  1. Return the money to the register.
  2. Give the money to the person working the register and explain what happened.
  3. Give the money to your manager and explain what happened.
  4. Take the money as a reward for a job well done.

The final section of the test showed common training materials (e.g., a training aid explaining how to make a specific sandwich) and asked questions about how well applicants interpreted what the training aid illustrated. Each store tracked how many of their hires actually met the minimum score.

The training component implemented at this brand involved two full weeks filled with general orientation and specific skill/knowledge development. Training methods included mini-classroom and simulated training accompanied by coaching and feedback. Training success was measured by a paper and pencil test that required an 80 percent score to pass.

Stores varied as to how well they complied with the new selection and training procedures.

Some stores pleaded that they needed to hire applicants with scores below the acceptable level, largely because positions had to be filled and not enough good applicants had applied. Training procedures, too, were sometimes casualties of crew shortages. New hires were thrown into work situations without the full two-week program. These differences in compliance for both selection and training procedures create a great opportunity to determine if people practices matter. Do stores that implement both programs and follow the rules closely do better on customer service, retention, and controllable profit? Yes.

Let’s contrast stores that were much better than average against those that were much worse than average at following the new selection and training people practices.

First, the best stores had service ratings that were 8 percent higher than the comparison stores. They also had retention levels that were 15 percent better. Finally, the better stores had 11 percent higher profits (relative to budgeted expectations) than those that did poorly in adopting the new procedures.

The value of this study is obvious. Normally HR folks stress the importance of good HR practices for higher-level jobs. After all, they reason, spending money on selection and training for high-end jobs is important because making errors at that level is costly.

This study demonstrates that developing job-related selection and training practices has immediate and significant impacts for entry level-positions, too. Upgrade your people practices and increases in customer satisfaction, retention, and profits are likely outcomes.

When I worked undercover as a quick-serve crew member, I was often surprised at how little attention was paid to selection and training. Of the seven stores that hired me, only two interviewed me 30 minutes or more. In four stores the interview lasted five minutes or less. I was asked three questions: Do you have the legal right to work in the U.S.? Do you have reliable transportation? What hours and days do you want to work? That was it. Nothing was asked about my personality, my reasons for applying, or my possible qualifications for the job. My applications stated that I had been a college teacher with a Ph.D for 30 years. That strikes me as something that might generate at least a bit of questioning.

Often, the training was equally minimal, too. At one store I reported for work at 10:45 a.m. and was put on the front counter by 11:15 a.m. The trainer who promised to remain at my side until I “had the hang of it” disappeared at the height of lunch rush. I’m told that my nervous breakdown occurred at 11:47 a.m.!

In my book I offered anecdotal evidence about stores with good people practices that were way ahead in retention and other relevant store measures. Here is a study with hard evidence that also supports a good people practices. Think about it!

Dr. Jerry Newman is the author of approximately 100 articles on human resource issues and the best-seller My Secret Life on the McJob: Lessons in Leadership Guaranteed to Supersize any Management Style.