South-Western - Management  
Optimas Award Financial Impact: National City Corporation
Topic Training and Development
Key Words training, turnover
News Story

National City Corporation had earned a reputation as a revolving door. In 1999, nonexempt employee turnover soared to 51 percent. Many workers quit within 90 days of being hired. The company offered training, but not a supportive working environment.

The National City Institute was formed in 2000 to help engage and assimilate new hires from their first day. The institute is staffed with instructors who have backgrounds in pre-employment assessment and selections systems, instructional design and delivery, performance-management consultation, and management development.

A "buddy system" matches a new employee with a peer. This bridges the gap between what new employees learn in training and what they need to know on the job.

New employees attend a series of workshops, such as Plus, which provides an overview of the company's corporate objectives, employee benefits, and brand. Another course augments the employee handbook. And another focuses on how to provide customer service and be a strong team player.

Hiring managers also attend workshops that focus on how to select buddy-sponsors, create a supportive work environment, clearly communicate, allow employees to take on more responsibility, and help them achieve career goals.

Since the program was implemented, new employees are 50 percent less likely to quit in the first 90 days, and 25 percent less likely to be absent.

Questions
1.

What types of training methods are used at National City?

2.

The article discusses how the training program has reaped financial benefits for the company. Why is it important for a training program to show a return on investment?

Source "Optimas Award Financial Impact: National City Corporation," Workforce, May, 2003, p. 50.
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