Training Policies and 
Administration Team

The Human Resource Practices Development (HRPD) Project

Project Sponsor: Joan F. Rice, V.P. for Human Resources

The HRPD Core Team

The Training Policies and Administration Team

* Term of appointment shorter than full term of the project.

TABLE OF CONTENTS

• Team Members
• Team Charter
• Summary
• Recommendations
• Implementation Strategy
• Costs and Funding

Rationale

If MIT is to remain an organization whose workforce is characterized by high performance and continual learning, then equal access must be provided to training and development opportunities. Training policies and procedures must promote efficiency, equity, flexibility and safety. Currently, there are no standards for training budgets, release time or minimum requirements, nor is there a strategic plan for addressing these issues. 

A consistent set of policies with regard to access to training would provide the following benefits to leaders, supervisors and staff: 

• opportunities to enhance skills, competencies and capabilities
• equal access to training resources both internal and external
• abilities required to perform at higher levels
• skills, competencies and capabilities required for diversified work assignments across the Institute
• a clear procedure for obtaining training
• a central data base of training needs and courses taken
• guidelines about such issues as minimum amounts of training and access to resources

• to produce a set of recommendations and an implementation plan to assure equal and efficient access to training and development activities for all Institute employees 
• to define training administration procedures that are clear and efficient

• A summary of best practices in higher education and industry and of current MIT practices
• A set of recommendations on:
• minimum standards for training ($, time, courses, or % of budget)
• the process for setting Institute training budgets, sources of funding (central versus department), and fees (including Tuition Reimbursement)
• the use of technology to track Institute training needs and training received
• policies about required courses and certification for certain jobs/roles
• A plan for implementing changes over time and a method for evaluating their effectiveness

This report summarizes the work of the Training Policies and Administration Project (TPA) Team. The team was created in the fall of 1997 as a result of the Human Resource Practices Design (HRPD) Team’s analysis of human resource practices at MIT. The HRPD Team found that in current training practices, "there is a great variability, inconsistency and inequality among areas with regard to access to resources, management commitment and actual dollars." The TPA Team was chartered to examine these inequalities and suggest methods for equalizing training opportunities while optimizing the benefits MIT receives from its training programs. 

For the purpose of this report, training is defined as: courses designed to develop basic and job-related skills, core technology skills and core competencies and to promote career development. Competencies are defined as: knowledge, skills and behaviors necessary for successful performance in a role or position.

Case for Action

MIT is faced with unprecedented challenges. Some of these challenges are particular to research universities; others are the same challenges faced by every organization today.

The working world is changing as organizations look for ways to do more with less without compromising the quality of their services. Over the past decade, organizations have tried total quality management, restructuring, downsizing, centralization, decentralization, reengineering and more. Behind these challenges is the tremendous force of unprecedented global change.

The Institute is being affected by changes in: 

• technology and the capabilities it offers
• systems and processes
• leadership 
• funding 
• the workforce and its expectations
• the complexity of work 
• collaborative work approaches through teams

MIT employees are critical to the future success of the Institute which took an important step in acknowledging their value when it issued the Human Resource Principles in 1994. These principles point the way to an MIT that considers people an Institute resource as evidenced by their emphasis on:

• careers which will likely include work in a number of areas
• high performance, goal setting and evaluation
• training necessary for new work will be provided by the Institute
• training for supervisors on coaching, team building and performance management
• continual learning as a joint responsibility of the Institute and the employee

• staff are encouraged to attend training
• there is a formal policy on access to training by employees in all payroll categories
• staff know about what training is available
• training is part of the performance management process for all employees
• training is evaluated for its effectiveness and continually improved
• leaders promote the value of training

What is urgently needed is a direct commitment to the employees of the Institute to provide them with the proper tools to maintain their high performance and continual learning so they can continue to help MIT maintain its greatness. The recommendations in this report provide concrete steps to move MIT in this direction.

Scope of the Team’s Work

The Training Policy and Administration Team began work in October 1997 in accordance with their charter. All team members pledged 20 percent of their time for a nine-month period, beginning on October 20, 1997, and the team leader made a 40-percent time commitment. Throughout the process, the team became aware of the benefits to MIT of a well-defined and well-communicated policy on training, and of central funding for job-related training, as well as the significance of support for training from senior level management. 

The team came to believe that employees have to take responsibility for their training needs, and that they need to be active and motivated in seeking training. The team also recognized that a successful training environment at MIT was a critical component of MIT’s stated Human Resource Principles, especially those listed below:

• People are an Institute resource. Therefore, positions in the future and careers for MIT employees are more likely to include cross-functional training, continual learning and work in a number of areas of the Institute. 
• Training necessary for the new work, beyond the basic educational requirements, will be provided by the Institute. 
• Continual learning is a joint responsibility of the employee and the Institute. Individuals continue to be responsible for their own ongoing general development in conjunction with their managers. 

Internal Review

The team began its research by reviewing MIT documents and contacting all MIT organizations that offered training to the MIT community. Team members did an extensive review of the relevant documents produced by the Personnel Department: The Guide to MIT Administrative Offices, The Personnel Policy Manual (Blue Book), and Policies and Procedures - A Guide for Faculty and Staff Members (Red Book). In addition, interviews were conducted with a dozen organizations that offer specific training at MIT, including Campus Police, Environmental Medical Services, Information Systems, and the Performance Consulting and Training Team.

Team members met with and interviewed the administrator for MIT’s Tuition Assistance Plan to gather information and review the plan’s recent changes and the tax laws affecting potential changes. In addition, they reviewed the recommendations made by the Task Group on Tuition Assistance of the Working Group on Support Staff Issues (July 1993).

In an effort to solicit input and gather data from as wide an audience as possible, the team developed paper and web-based survey instruments for three different MIT groups: support staff, administrative staff (non-supervisors), and administrative staff (supervisors). The team validated the survey questions, prior to publication, with members of the Administrative Advisory Committee (AAC). Team members then surveyed a random sample of approximately 2,000 MIT staff members that included approximately one half of all MIT support staff (1,100) and administrative staff (750). The rate of return was 16 percent for support staff and 9 percent for administrative staff.

In addition, the team conducted 12 one-on-one interviews with senior MIT administrators to solicit feedback on the current state of training at the Institute and what direction they would like to see it take. A different set of questions was developed for these interviews. 

External Review
After collecting extensive data on training at MIT, the team extended its research to include outside organizations. The companies and organizations were selected because they were recognized for their best practices, had organizational similarities to MIT or were members of the Boston Consortium, an organization of area colleges and universities. In addition, the team reviewed the literature of the American Society for Training and Development (ASTD) and other training-related periodicals.
 

Major Findings

Once they completed their research, team members formed sub-groups to begin data analysis. After compiling the survey statistics for each group, they developed a list of themes for that particular group. Once themes for each group had been determined, a list of common themes across groups began to emerge. These themes formed the basis for the team’s internal findings (Appendix II).

Internal 
These findings are based on survey responses from support and administrative staff and interviews with MIT senior administrators. (Appendix I. A and B.)

• Stated Policy: Although The Administrators’ Users Guide describes MIT’s commitment to sponsoring training and development programs, the team was unable to find evidence of a consistent, well-communicated training policy at MIT. Survey and interview results confirmed this finding, as well as the lack of evidence of a consistent training policy among departments. In addition, the team was unable to find an easily accessible, centralized source of information about training courses. 
• Access to and Encouragement for Training: While support staff and senior administrators feel that there is access and encouragement for training, the majority of administrative staff do not feel that there is a climate, culture or supervisory encouragement for training. They feel such a climate is critical for training success. 
• Authorization: There is consensus across all groups that supervisors, managers, administrative officers, or department heads approve staff training.
• Tuition Assistance: Approximately 20 percent of the support and administrative staff surveyed use MIT's Tuition Assistance Plan. There was a general desire to see the tuition assistance program expanded to include eligibility for more courses.
• Time and Coverage: Support, administrative and senior administrative staff all cite time away from the office and coverage for time away as significant issues that impede training attendance.
• Training and Departmental Goals: Of those surveyed, half believe that an individual's training is tied to departmental goals.
• Budget: While 25 percent of the administrative staff use a training budget line item, the Institute "generally" has no direct budget for training, according to senior administration. Training is provided out of discretionary funds.
• Measuring Training Effectiveness The majority of those surveyed in all categories noted that there were no formal measurements used within their departments to evaluate the effectiveness of training.
• Topic Areas for Training While support and administrative staff indicated that computer/technical and professional development courses were the most often taken and the most desired types of training, administrative supervisors and senior administrators would like to see more training done on MIT policies and procedures and "getting things done" at the Institute.

• Stated Policy: One third of the organizations surveyed have formal training policies. One organization had a 40-hour training requirement while another estimated that employees averaged about 8 hours of training per year. 
• Access to and Encouragement for Training: Many organizations cited management encouragement and involvement as the key to successful training practices.
• Authorization: In two thirds of the organizations surveyed, managers and supervisors authorize training. In six organizations, there are some types of required courses.
• Tuition Assistance: All but one organization have tuition assistance plans. One third allows professional development or any course on campus. One considers any undergraduate degree to be job-related.
• Time and Coverage: Most report that release time is encouraged or is not an issue. However, the final decision about attending a course is usually up to the supervisor.
• Training and Departmental Goals: Of those surveyed, all state that training is tied to organizational goals.
• Budget: Eleven of twelve organizations have a central budget for training. In two organizations, volunteers run training classes. Only one organization covers the work of employees when they are at training. 
• Measuring Training Effectiveness: Fewer than half of the organizations do any evaluation of training. Most of those who do are beginning to evaluate transfer of training back to the job. Only half the organizations surveyed keep track of who attends training. Of those who do keep track, most rely on some sort of electronic system. Most tracking is decentralized.
• Topic Areas for Training: Most offer training on job-related topics, management and supervisory development, safety and computer courses.
• Training Effectiveness: Training is more effective when supervisors and employees discuss career development and outline training needs. 

• tuition is advanced when an employee registers for a course (several reported this practice) (Teradyne, Harvard Pilgrim)
• a learning plan is developed for each employee (these do not focus only on courses) (Teradyne, University of Michigan)
• sponsorship of training has to be modeled by the leadership; the CEO helps develop training programs and attends (Teradyne, Anderson)
• training has always been seen as positive – it’s always been part of the culture (Anderson)
• the biggest factor is senior leaders’ support for training (Teradyne, Anderson)
• employees self-select training – every employee is entitled to release time (Beth Israel Deaconess)
• there is close alignment of training with strategic objectives (Beth Israel Deaconess, Tufts, Harvard University, Teradyne)
• use of a "high impact training approach;" supervisor and employee set goals and measure success; training is part of a performance cycle. (University of Michigan)
• a calendar of training and course registration is available on the web (University of Michigan, Harvard, Boston University, Deloitte & Touche, Teradyne, Tufts)
• an advisory group helps determine what courses to offer (Harvard, Deloitte & Touche)

In addition to interviews and surveys, the team researched benchmark data from the American Society for Training and Development (ASTD). This was done through a review of their many publications and visits to their web site. 

ASTD has a very large Benchmarking Forum of top companies associated with business success and excellent training and human resource practices. These companies report each year on their current practices, which ASTD then reports to the public. ASTD also conducts surveys among larger segments of non-Forum members. In 1997, ASTD surveyed 540 organizations (large and small, nationwide and from nine industry types) to gather data on their training practices and expenditures. Leading edge firms, those written up in management and human resource journals as best practice organizations, were singled out and compared with the average in many categories. These leading-edge firms may also be in the ASTD Benchmarking Forum or listed among the best firms to work for in the United States. 

Some of the more relevant data from this first Human Performance Practices Survey is reported here.
 

	Entire Sample	Leading-edge Firms
average training expenditure as a percentage of payroll in 1996	1.46%	3.93%
average training expenditure per employee in 1996	$504 $911 high tech	$1,659

The following were found most consistently in leading-edge firms.
 

training resource center	designated facility with training staff, materials and information
train-the-trainer courses	teach non-training staff on instructional design and group facilitation
mentoring or coaching programs	formal process to match experienced with less experienced staff to provide instruction or assistance
individual development plans	course of action designed by employee and supervisor outlining career development and training needs
training information system	computer system to track training: individual training history, expenditures, learning plans, course scheduling

ASTD also reviews government and other industry surveys and reports these results. The following data were reported in the ASTD Training Data Book from a Bureau of Labor Statistics survey in 1995.
 

average number of training hours per employee per year (500+ employees)	24 hours
average annual days of training per employee	service sector: 4.6 days manufacturing sector: 4.5 days

Benefits of Training

During its external research, the team found the following evidence of the benefits of training:

• "Participation in employer-sponsored training reduces the likelihood of an employee leaving the employer." (ASTD Training Data Book, p. 3)
• "Participation in employer-sponsored off-the-job training raises workers’ productivity by 16 percent and increases their innovation on the job." (ASTD Training Data Book, p. 3)
• "Motorola calculates that every $1 it spends on training delivers $30 in productivity gains within three years." ("Companies That Train Best," Fortune) 
• Twelve studies at GTE Corporation and Western Electric Company found it to be less expensive to train and upgrade skills of existing workers than to hire and train new workers. ("The Value of Training in The Era of Intellectual Capital," The Conference Board)

A recent study of 315 human resource and training executives from companies in the Business Week 1000 was conducted by The Conference Board, an organization of businesses which has been researching business issues since 1916. The study, "The Value of Training in the Era of Intellectual Capital" used the four levels of training evaluation that were developed by Kirkpatrick in 1959 and have been the standard for 40 years. 

1. Reaction – trainee reaction to training intervention
2. Learning – understanding of subject taught, generally demonstrated by pre- and post-course evaluation
3. Behavior – application of what was taught; changes on the job
4. Results – the impact on business results (increased sales, fewer errors, etc.)

While there is a need for a precise way to interpret the results of training, most companies surveyed do not measure ROI (return on investment) because:

• many types of training are not appropriate for this type of measurement (e.g., leadership training)
• value has different meanings to different groups (value could be ROI, operational results, higher morale and job satisfaction, employee retention)
• there are too many variables involved in measuring results of training

The vice president of human resources at 3M, discussing attempts to measure the bottom-line value of training, states that he is "not convinced that the result is worth the effort. We know intuitively that development must be continuous…"(Conference Board Report, p. 8)

The Conference Board reports that a new and promising approach to evaluating training, the Investors In People Award, is gaining popularity in the U.K.. To receive this award, a company must have a written training plan which is an outgrowth of its business plan. Training must be conducted according to this plan and evaluated afterward. 

Senior management must view this training plan as a strategic aspect of their business goals. Evaluation of training has three levels:

• the effectiveness of training activities as learning experiences,
• transfer of learning to the job, and
• positive effects on organizational results.

Preparing the Recommendations

After reviewing all of their data and research, the team members held an off-site brainstorming meeting to begin to develop recommendations. Using an Affinity Diagram to develop a master list of recommendations, the team grouped the recommendations by category and reworked them over several sessions. They validated their proposed recommendations with the Human Resource Principles and drafted the characteristics of and the potential implementation plan for each recommendation.

Once they formulated their recommendations, the team once again went to the MIT community. (Appendix I. C.) First, they presented their draft recommendations to the HRPD and Performance Consulting and Training Teams for comments and suggestions. During the following weeks, the team held four focus groups, two with members of the support staff community, and one each with administrators who were supervisors, and non-supervisory administrative staff. At each of these meetings, they focused on gathering in-depth feedback on three pre-selected recommendations, as well as their general responses to all the recommendations. Team members then met with members of the AAC and focused on gathering feedback on implementation issues. After incorporating the feedback they received, the team finalized the following six recommendations. 

Before MIT can implement all the Training Policy and Administration Team’s recommendations for a training policy, the Institute must develop a way to track training costs. This is the team’s first recommendation. 

Although the team was able to identify more than $3 million currently being spent on training, it was impossible to calculate the total amount MIT spends annually because there is no line item in department budgets for training. Consequently, these costs are not accounted for in any systematic, easily identifiable way. Essentially this means that MIT could be spending a considerable sum of money for training without being able to clearly break out this cost so that it can be managed effectively. 

1.     Develop a single budget line item for training costs in department budgets.

Characteristics 

• Departments will track training costs, as defined by the Training Advisory Team (see Recommendation 2). 
• MIT will monitor training costs Institute-wide to determine what portion of the total MIT budget these costs represent. 

Characteristics

• A Training Advisory Team is established.
• Equitable access to appropriate training is available across departments, laboratories, and centers. 
• A clear policy on training is established and communicated to MIT employees. 
• MIT leaders become drivers of a learning culture. 

Characteristics

• Every MIT employee has a learning plan that takes into account individual and team learning and addresses both technical and behavioral competency development. 
• Employee learning plans are developed as part of the performance appraisal process. 
• Learning plans are aligned with employee, department and Institute goals. 
• Learning plans extend beyond formal classroom training.

Characteristics

• Departments define in writing local training requirements and standards. 
• Supervisors have adequate training to assist in the development, guidance and evaluation of employees. 

Characteristics

• Most training related to jobs, roles and competencies is centrally funded. 
• Training information is readily available, relevant, timely and well communicated.

Characteristics

• Training is available through a variety of media and methods, appropriate to the subject matter and audience. 
• Local department staff present training when appropriate. 
• Outside vendors are used to provide specialized training. 

As the TPA team progressed with its work, it became apparent that both MIT employees and the Institute would benefit from the implementation of these recommendations in the following ways:

• Cost Tracking: Tracking department training costs will give MIT a good idea of how much is currently being spent on training and provide guidelines for future expenditures
• Formal Policy: A formal, defined, and well-publicized policy on training will help all levels of MIT staff recognize the Institute’s commitment to training. Such a policy can be used as a guideline in establishing department norms for training and give individuals assistance in making a case for their own training needs. 
• Central Funding: Providing central funds to underwrite the costs for on-campus training programs will make these programs more accessible to all MIT employees. Easier, more equitable access to training will result in a better- trained staff. Employees who receive training will feel that they are considered an important resource of the MIT community. This will further increase staff loyalty. 
• Faculty Support: A well-trained, more versatile staff will allow faculty to delegate tasks more successfully, giving them more time for teaching and research. Training will also create a ready pool of qualified, internal candidates to fill open staff positions.
• Tuition Assistance: A more widely promoted Tuition Assistance Plan, and wider communication about training, in general, will educate staff about training which can enhance both their job-related and career-related skills. As a result, training will become more employee-driven. 
• Labor Market: A world-class training program will enable the Institute to compete in the labor market more effectively and will promote succession planning for key staff positions. 
• Learning Plans: The development of individual learning plans provides employees and supervisors with a tool to assess the learning needs of individuals and teams, to develop skills for their immediate positions and to assist them in thinking of longer-term employment goals at the Institute. Tying such plans to the performance appraisal process and recommending that supervisors play an active role in their employees’ training supports regular attention to these plans. 

As the Institute continues to evolve its human resource practices, it remains critically important to view the individual recommendations of the HRPD project teams as part of an integrated human resource system designed to develop and support a flexible, high performing workforce. Training is an important and necessary tool that links and supports the other practices.

The work of HRPD’s Orientation, Generic Roles and Competencies, and Performance Management teams demonstrates the intrinsic link between these project teams and the goal of the Training Policy and Administration Team to highlight the importance of training during all stages of an employee’s tenure at MIT. 

New employees’ first impressions of MIT come from their orientation to the Institute. What does the Institute have to offer and how can they contribute? Orientation, the first stage in employee development, is key to giving new employees an opportunity to make an immediate connection to MIT. The work of the Orientation Team addresses this need.

As employees progress in their work, it becomes necessary for them to have an outline of the skills and knowledge required to understand and to perform in their current jobs and roles. The Generic Roles and Competencies Team will give the Institute that outline, by clearly identifying the competencies needed to reach a high level of performance in a current position, and to assist employees in career development at MIT. Training and learning experiences will be based on these competencies, according to the needs of the department and the skills of the individual. 

Training based on a systematically developed learning plan will enable an employee to become a high performer and an asset to the organization. However, training is only one part of the performance cycle. The work of the Performance Management Team will provide Institute employees with guidelines for a process that begins with goal setting, involves training and learning activities, requires evaluation of performance, and closes with feedback and the setting of new goals.

Once an employee commits to working toward high performance and becomes a high performer, it is the Institute’s responsibility to continue to encourage that performance. The Rewards and Recognition Team has presented recommendations to acknowledge and reward outstanding performance. Employees need to know that their accomplishments and contributions are being noted and appreciated. This creates loyalty and commitment and helps to ensure that the Institute has a stable, highly skilled workforce.

Implementation of the Training Policies and Administration Team recommendations will occur over a two-year period, in phases in conjunction with other HRPD project team recommendations, 

1. Develop a single budget line item for training costs in department budgets. 

a) MIT will use local department content experts at all levels to develop and teach business and technical courses. 

Proposed target for completion:      Ongoing

b) MIT will provide training through multiple media such as web-based training, video, self-study manuals, user groups and mailing lists, CD-ROM and traditional classroom training. MIT will experiment with different time formats. 

Proposed target for completion:      Ongoing

c) The Performance Consulting and Training Team will develop a program to train and support departmental level training by department staff. 

Proposed target for completion:      Phase Two

d) The Institute will continue to develop partnerships with outside vendors and consortia to reduce costs, increase effectiveness, broaden the scope of available training and supplement internal training. 

Proposed target for completion:      Ongoing

e) The Performance Consulting and Training Team will become a clearinghouse for information and tools on ways to deliver training. Communication will be through the training web site, through work with clients, and through courses and demonstrations. 

Proposed target for completion:      Ongoing

Known Current Costs

Central funds currently pay for the following. The Training Policies and Administration Team recommends that the areas identified below continue to receive central funding.
 
 

Internal Training Operation	Annual Cost of Operation
Personnel Department Yellow Book courses	$ 98,000
The Performance Consulting and Training Team*	264,000
Information Systems Core Technology training	390,000
Safety Office training	25,925
Tuition Assistance Program	1,400,000
SAP training (to train MR staff – includes travel)	160,000
SAP training for MIT staff (400k – 700k range)	550,000
MIT’s Professional Learning Center	307,000
Campus Police	13,000
Environmental Medical Services	365,000
Family Resource Center	32,000
TOTAL	$3,604,925

(* includes training activities but not consulting)

For all other training, it is important to determine to what extent departments fund training from base budgets or other sources of funds. 

Future Costs

Regardless of the providers, costs of implementation are difficult to assess. However, the following expenses need to be considered in any cost analysis:

• Maintenance of ongoing, centrally funded courses
• The cost of external courses and educational conferences for topics not offered on-campus
• Costs of developing core skills and competencies courses
• Tracking and reporting class attendance
• Development costs for guidelines, templates, web pages
• Related administrative costs

Administrative Dilemma

One of the issues discussed in detail by the team was the administration of central funding for courses not available on-campus. This proved to be a difficult issue to resolve because the team saw two possibilities for disbursing money: to departments that identify needed training during the planning and budgeting process, or to individual staff members who could apply for training funds on an as-needed basis. Either choice has merits and shortcomings. The goal of creating an environment where supervisors allow and encourage attendance at training must be balanced with the goal of controlling unnecessary administrative costs. The team has identified the following pros and cons for each method.

Pro:	Con:
easier to administer	some departments may not budget for training
very straightforward	department control could maintain inequality of access
reinforces training needs assessment	training is often the first budget item to be cut
	difficulty in knowing how much each department will need
	department HQ will become responsible for staff in faculty offices

Pro	Con
departments can’t deny access to funds	costs to administer
training becomes employee driven	amounts to allocate not known
reflects MIT ’s commitment to training	requires detailed guidelines to administer
simplifies tracking of costs	may require reductions in current department’s training dollars
can be modeled after the Tuition Assistance Plan	large central fund is easy target for cutbacks
increases access

Open Issues

During the course of their work, the Training Policies and Administration Team members identified the following questions that should be considered when developing a training policy for MIT. 

• How will central funding for off-campus courses be administered?
• How much money will be needed in the future to cover the cost of recommended days of training per staff member per year?
• What impact will the recommendations from the Generic Roles and Competencies project team have on the need for training?
• What will be the steady-state cost of SAP training?

The Training Policy and Administration Team believes the following factors are essential for the development of an effective training and development program:

• leaders demonstrate that they value training
• training is planned for as part of the performance cycle
• the Institute continues its monetary support for training
• training is evaluated for its quality and effectiveness
• there is increased communication about training
• training is accessible to employees in all payroll categories