On-the-job training versus formal training: An evaluation of its impact on employee performance

The success or downfall of any organisation is highly sustained by the quality and performance of its employees. Hence, in order to stay ahead in the today’s competitive market, to grow and to be successful, organisations must train its employees with the appropriate training method. In many companies, employees are considered as the backbone of the firm, they are highly significant and are accountable for accomplishing most of the task. Furthermore, without the right training technique, it would not be possible for an employee to gain to relevant competencies and knowledge needed to perform their duties to their full capacity (Elnaga and Imran, 2013). The aim of this research is to evaluate the impact of on-the-job training versus formal training on employee performance. The primary research will be carried out in a B2B Telemarketing company called IDG Direct through the consent of the company. A quantitative research design will be used for this research with an attempt to evaluate employees’ opinion on which method of training has more impact on their performance. As there was no previous scale that measures OJT and formal training on employee performance, the researcher created some questions with the aim of answering the research question. The data was distributed to 256 employees in the company through a web-based structured questionnaire with a total of 110 responses. The findings that were derived pointed out that both on-the-job training and formal training has an impact on performance but OJT has a greater impact. It was suggested and recommended the training provided by companies should be tailored to each individual needs. Furthermore, the training session should be constantly evaluated to ensure that the employee have learnt or gained the relevant skills