Boost Your Team’s Success: Discover The Secret To Unstoppable Growth With On-the-Job Learning

Proven Approaches to Cultivating Talent, Closing Skill Gaps, and Accelerating Growth

Jul 10, 2025

In the evolving landscape of skills-first management, on-the-job training (OJT) is a cornerstone for developing employee capabilities in relevant, practical contexts. Organizations that effectively implement OJT programs create powerful opportunities for employees to develop critical skills while contributing to organizational goals. This article explores the strategic value of on-the-job learning, examines different approaches, and provides guidance on implementing programs that deliver measurable results.

The Value of On-the-Job Learning in Skills Development

Why OJT matters in a skills-first organization

In skills-first organizations, on-the-job training is a critical bridge between theoretical knowledge and practical application. As companies transition from credential-based to skills-focused talent strategies, OJT provides a direct mechanism for building and validating capabilities within the actual work context.

According to Forbes, companies with comprehensive training programs yield 218% higher income per employee than those without formalized training. This dramatic difference highlights the financial impact of effective skills development within the workflow. Forbes also reports, companies that prioritize training enjoy a 24% higher overall profit margin. These statistics underscore OJT's critical role in any skills-first approach.

Benefits of learning in context

Learning within the actual work environment creates several advantages that classroom instruction alone cannot provide:

Immediate application: Employees can instantly apply new knowledge to real-world situations
Enhanced retention: Context-based learning improves information retention and recall
Relevance amplification: Skills acquired directly relate to current job demands
Confidence building: Employees gain confidence as they master skills in their actual work environment

According to SurveyMonkey research, almost 6 out of every 10 workers think training helps them do their job better, and 51% believe training gives them more confidence. These outcomes demonstrate the powerful impact of contextual learning on employee performance and self-efficacy.

Cost-effectiveness compared to formal training

One compelling advantage of OJT is its cost efficiency compared to traditional classroom instruction. The Association for Talent Development reports that the 2023 average training cost per employee is $1,283, with companies dedicating an average of 17.4 hours of employee training time. OJT leverages existing resources, equipment, and expertise in the workplace, significantly reducing these costs while maintaining or enhancing learning effectiveness.

Additionally, OJT eliminates many expenses associated with formal training, including:

Travel and accommodation costs
External trainer fees
Facility rentals
Production losses from extended time away from work

Building tacit knowledge through experience

Perhaps OJT's most significant advantage lies in its ability to transfer tacit knowledge, the intuitive, experience-based knowledge that resists formal documentation.

Tacit knowledge is:

Context-specific
Difficult to express in formal training materials
Developed primarily through experience and practice

Unlike explicit knowledge that can be codified in manuals and procedures, tacit knowledge transfers most effectively through observation, practice, and guided experience, which is precisely what well-designed OJT provides.

The connection between OJT and employee engagement

OJT contributes significantly to employee engagement by meeting workers' developmental preferences. Research shows 68% of employees want to train while at work, and 58% prefer to learn at their own pace. By meeting these preferences, organizations create more engaging learning experiences.

According to Gallup, companies are 17% more productive and 21% more profitable when they offer training to engaged employees. This connection between learning, engagement, and performance creates a powerful argument for prioritizing OJT in skills-first organizations.

Types of On-the-Job Learning Opportunities

Job rotation and cross-functional experiences

Job rotation systematically moves employees through different positions or departments to develop diverse skills and comprehensive organizational knowledge.

This approach provides several benefits:

Builds adaptability and versatility
Prevents knowledge silos
Creates organizational resilience through cross-training
Identifies employee strengths across multiple domains

According to ATD Research, rotational training programs can help employees determine what kind of work they enjoy, increase employee engagement, and ensure that if one employee leaves, another is ready to fill that position.

Houghton Mifflin Harcourt (HMH) implemented LEAD Connected, a job rotation program that helps develop well-rounded future leaders. The program allows high-potential employees to rotate through different business functions, breaking down departmental silos. One participant noted it was an opportunity to view the business from 360 degrees.

Stretch assignments and special projects

Stretch assignments challenge employees to take on responsibilities beyond their current skill level, creating natural learning environments. These assignments:

Push employees beyond their comfort zones
Create opportunities to develop new capabilities
Increase visibility and recognition
Build confidence through accomplishment

Special projects might include process improvement initiatives, product development teams, or cross-functional task forces. These projects allow employees to contribute meaningfully while developing new skills and relationships across the organization. It also supports the skills-first concept of internal mobility.

Action learning initiatives

Action learning combines solving real business problems with reflection and learning, typically in small groups addressing significant organizational challenges. This approach creates powerful learning by connecting reflection directly to action and results.

Heineken successfully integrated action learning into its global First-Line Manager Development Programme for over 6,000 managers who oversee manufacturing plants, logistics, and customer service. Action learning sets run between training modules specifically to support the implementation of learning. Delegates report that what they learn makes a real difference in how the day-to-day work is done, including improved delegation and performance management.

Shadowing and observation opportunities

Job shadowing involves pairing less experienced employees with seasoned performers to observe effective practices firsthand. ATD Research finds that job shadowing is the second most common method of OJT (68% of organizations), following on-the-job coaching by managers (75%).

Shadowing provides several unique benefits:

Transfers tacit knowledge that is difficult to capture in formal training
Builds relationships between experienced and developing employees
Provides context and nuance for technical skills
Creates a low-risk learning environment before independent performance
Easily organized and scheduled as part of the workflow

Process improvement participation

Involving employees in process improvement initiatives creates dual benefits: enhancing operations while developing critical skills. When employees participate in analyzing and improving workflows, they:

Gain a more profound understanding of business processes
Develop critical thinking and analytical skills
Build collaboration capabilities
Experience greater ownership of their work environment

This approach aligns with continuous improvement methodologies that emphasize employee involvement in identifying and implementing operational enhancements.

Structured vs. Unstructured On-the-Job Training

Creating formal OJT frameworks

Structured OJT follows a predetermined, systematic approach based on careful planning and defined objectives. As an excerpt from "Structured On-the-Job Training: Unleashing Employee Expertise in the Workplace" notes, "The term structured simply means that the training has undergone adequate forethought and planning".

Creating effective formal OJT frameworks typically involves:

Conducting thorough job analyses to identify required skills
Developing detailed training plans with clear objectives
Creating standardized instructional materials
Establishing consistent assessment methods
Training dedicated OJT coaches or instructors

NiSource's structured OJT program is an example of this approach. It includes groups of tasks assigned to students based on their role and the classroom training they have completed. These tasks include self-study, job assignments, targeted conversations with supervisors, standards reviews, and more.

The role of spontaneous learning

While structured approaches provide consistency, unstructured or spontaneous learning is equally important in employee development. Unstructured OJT occurs naturally during daily work as employees encounter new situations, solve problems, and learn from colleagues without formal design.

Spontaneous learning:

Capitalizes on teachable moments
Addresses emergent learning needs
Fosters innovation and creative problem-solving
Often transfers tacit knowledge effectively

Research shows many critical workplace skills develop through these informal interactions and experiences, complementing more structured approaches.

Balancing structure with flexibility

The most effective organizations balance structured frameworks with the flexibility needed for spontaneous learning.

This balance might include:

Core structured training for fundamental skills
Flexibility for coaches to address emergent learning needs
Scheduled reflection time to capture insights from unplanned learning
Documentation systems that capture both planned and spontaneous learning outcomes

Documentation processes for structured OJT

Adequate documentation ensures consistency, accountability, and measurable outcomes in structured OJT programs.

Essential documentation includes:

Competency frameworks that clearly define required skills
Training guides that provide step-by-step instructions for trainers
Progress tracking systems that document skill development
Verification methods that validate competence

NiSource's approach to documentation is popular and effective. When a student believes she has successfully gained the knowledge for a group of tasks, she takes a mini-quiz. If she correctly answers all the questions, an OJT coach will observe the student completing the related work. If the student performs the work successfully, the OJT coach signs off, and that employee progresses to the next training phase.

When to use each approach

Several factors should guide the decision to implement structured or unstructured OJT:

According to Guy Wallace at Enterprise Process Performance Improvement Consultancy, structured OJT is best used where population sizes, location logistics, timing needs, or instructor availability make group-paced and self-paced training impractical. Unstructured approaches often work better for tacit knowledge transfer and highly variable work environments.

Implementing Effective On-the-Job Learning Programs

Developing OJT coaches and mentors

The success of OJT programs hinges mainly on the quality of coaches and mentors who guide the learning process. NiSource created a dedicated OJT coach position with specific responsibilities embedded throughout their field operations. Effective OJT coaches need both technical expertise and instructional skills.

Organizations should:

Select coaches based on both technical proficiency and teaching aptitude
Provide formal training in coaching and adult learning principles
Create recognition systems that value coaching contributions
Establish communities of practice where coaches share best practices

Creating learning objectives for OJT

Clear learning objectives provide direction and establish measurable outcomes for OJT programs.

Effective objectives should be:

Specific about exactly what skills will be developed
Measurable through observable performance
Achievable within the work context
Relevant to job requirements and organizational needs
Time-bound with clear development milestones

NiSource's competency-based approach integrates technical skills with power or soft skills (business acumen, technological aptitude, customer experience, behavior and attitude, and safety) in every course, during on-the-job training, and in evaluations. This comprehensive framework ensures development of both technical and essential workplace behaviors.

Designing progressive skill-building experiences

Effective OJT programs structure learning experiences to build skills progressively from basic to advanced levels. NiSource uses this approach by specifying which job codes can be assigned to an employee based on their completed training. This creates efficient work scheduling and ensures employees are qualified to perform the work they are asked to complete.

Progressive skill development:

Begins with foundational knowledge and skills
Advances to increasingly complex applications
Incorporates greater autonomy as proficiency grows
Culminates in mastery and ability to teach others

This structured progression prevents overwhelming learners while systematically building capabilities and confidence.

Balancing productivity with learning

One of the primary challenges in implementing OJT is maintaining productivity while allowing sufficient time for learning. Organizations must recognize that short-term productivity investments yield long-term performance gains.

Strategies for balancing these competing demands include:

Setting realistic performance expectations during learning periods
Scheduling dedicated learning time within work shifts
Creating low-risk practice environments for critical skills
Gradually increasing performance expectations as skills develop

Gallup's research shows that companies offering training are 17% more productive, demonstrating that this investment ultimately enhances rather than diminishes productivity.

Addressing common implementation challenges

Organizations implementing OJT programs frequently encounter several challenges:

Inconsistent delivery: Different coaches may provide varying quality of instruction
Time constraints: Operational pressures can crowd out learning time
Knowledge documentation: Capturing tacit knowledge proves difficult
Measuring outcomes: Demonstrating the value of OJT can be challenging
Organizational support: Training time and costs may be cut if leadership waivers

Successful programs address these challenges through standardized training materials, protected learning time, knowledge management systems, robust evaluation methods, and strong leadership commitment.

Measuring Skills Acquisition through OJT

Observation and performance assessment methods

Direct observation remains one of the most effective methods for assessing skills acquired through OJT. NiSource implements a "ride-along" where coaches observe students completing work tasks before signing off on their progress.

Effective observation includes:

Structured assessment checklists aligned with learning objectives
Multiple observations across different situations
Immediate feedback on performance
Documentation of both strengths and development areas

Before and after evaluations of an individual’s performance effectively determine how well the training was learned and applied. This visual authentication can be as simple as recording sales pitches before and after training to assess improvement.

Practical demonstration of competence

Requiring practical demonstration of skills provides clear evidence of learning effectiveness.

Practical demonstrations should:

Reflect actual job requirements
Include realistic conditions and constraints
Incorporate problem-solving elements
Be assessed against clear performance standards

Self-assessment tools for learners

Encouraging learners to assess their progress fosters self-awareness and helps them take ownership of their development.

Effective self-assessment tools include:

Competency checklists
Reflection journals
Confidence ratings for specific skills
Gap analyses comparing current skill levels to desired proficiency

These feedback mechanisms help learners identify their progress and understand their remaining development needs.

Documentation of skill progression

Systematic documentation of skill progression creates a record of achievement and guides future development. NiSource documents progress through "mini quizzes" and signed validation of demonstrated competence.

Effective documentation systems:

Track progress toward defined competencies
Provide evidence for certification or qualification
Support career development planning
Demonstrate return on training investment

The Phillips ROI Model builds on the Kirkpatrick Model by measuring reaction, learning, application, impact, and return on investment, providing a comprehensive framework for documenting OJT outcomes.[DN1]

Linking OJT outcomes to performance management

To maximize impact, organizations should integrate OJT outcomes with performance management systems.

Key metrics to track include:

Time-to-proficiency
Knowledge retention
Training-to-task mastery transfer
Impact on core business metrics

This integration creates accountability for development and recognizes skill acquisition as a valued performance dimension.

Case Studies of Successful On-the-Job Learning Programs

NiSource's structured OJT program

NiSource implemented a comprehensive structured OJT program in response to high retirement rates and increased hiring. The company created dedicated OJT coach positions embedded throughout their field operations groups to support employee development in the field.

Key elements of their approach include:

Blending foundational classroom training with focused OJT
Segmenting learning into discrete task batches
Using mini-quizzes to assess knowledge acquisition
Conducting ride-along observations to verify skills application
Providing additional OJT when performance gaps are identified

NiSource's approach demonstrates how structured OJT can systematically develop capabilities for dispersed field operations teams while ensuring consistent quality and safety standards.

Rotation programs for leadership development

Houghton Mifflin Harcourt (HMH) launched the LEAD Connected job rotation program in 2021 to create a diverse internal leadership pipeline. The program allows high-potential employees to rotate through different business functions to develop broad organizational knowledge and break down departmental silos.

Kimberly Mosby, a program participant, found tremendous value in her job rotation experience in capability development, operations, and product management strategy. She shared that the knowledge and exposure to different parts of the industry helped her "shine company-wide".

Action learning at Family & Community Services (FACS)

Family & Community Services (FACS) in New South Wales, Australia, implemented an action learning program for a pilot project involving collaboration with non-government organizations’ staff for new service delivery. The project aimed to help FACS staff work better with Aboriginal children, young people, families, and communities.

Key elements included:

Initial face-to-face training bringing NGO and FACS staff together
Developing relationships between pilot group members
Experiencing collaborative learning
Explaining and beginning the process of action learning

This case illustrates how action learning can be particularly effective for projects requiring new ways of working, especially cross-organizational collaboration.

Boeing Develops Global Leaders Through Action Learning

Boeing implemented action learning programs for developing global leaders, finding that executives demonstrated learning when put into a new environment and asked to learn by doing.

Post-program evaluations showed:

All participants demonstrated increased awareness of the global environment
90% demonstrated at least one new learning about themselves or their job
40% identified specific behavior changes after returning to work
8% reported specific, quantifiable performance improvements

Boeing became so convinced of action learning's effectiveness that they incorporated it across all of their programs, beginning with first-level management curriculum through mid-level training and in executive programs.

OJT programs for technical skills development

Technical skills particularly benefit from hands-on development approaches. ATD Research found that 95% of organizations use on-the-job training to build frontline employees' technical skills.

The most common methods include:

On-the-job coaching by managers (75% of organizations)
Job shadowing (68%)
Employee knowledge sharing (68%)
Rotational training programs
Leaders-as-teachers programs
Apprenticeships

While apprenticeships have traditionally been associated with skilled trades, the apprenticeship model is growing rapidly in various industries across the United States. It is successfully used to train and build experience in numerous roles by providing direct support in hands-on training and working experience.

Integrating OJT with Formal Training and Mentoring

Building comprehensive learning journeys

The most effective skill development approaches combine multiple learning methods into comprehensive journeys tailored to employee needs. NiSource blends foundational instructor-led training with a formal OJT program delivered by trained OJT coaches.

Their mandate is to provide students just enough information and practice in formal classroom training to build a competency foundation, and then to use structured OJT to broaden and deepen capabilities, moving employees to complete mastery. This integration maximizes the strengths of each approach while compensating for their limitations and providing flexibility for individual learning styles.

Reinforcing formal training through OJT

OJT provides critical opportunities to apply and reinforce knowledge gained through formal training. According to data from Freeletics, a fitness company, blended learning approaches that combine traditional instructor-led training with other formats accommodate different learning styles and enhance engagement.

Effective reinforcement strategies include:

Scheduling OJT experiences immediately following formal training
Creating application exercises that directly reference formal training concepts
Using coaches who understand formal training content
Providing feedback that connects performance to learning concepts

This reinforcement cycle significantly enhances skill retention and application.

Using mentors to enhance on-the-job learning

Mentoring relationships complement structured OJT by providing ongoing guidance, support, and contextual wisdom.

Effective mentors:

Help learners navigate organizational complexities
Provide context for technical learning
Offer career development guidance
Share tacit knowledge gained through experience

Organizations should establish formal mentor matching programs that pair learners with experienced employees who can provide technical guidance and broader career development support.

Technology platforms to support blended approaches

Modern learning technologies enhance OJT effectiveness by providing resources, tracking progress, and connecting learners. According to Whatfix, Experience API (xAPI) helps track learning across different sources and provides rich insights that allow L&D teams to measure training effectiveness across blended programs.

Digital adoption platforms can:

Provide performance support during work tasks
Track skill application in real work situations
Deliver microlearning during appropriate workflow moments
Gather feedback on learning effectiveness

Freeletics successfully implemented a blended learning approach using Deel Engage that combines Slack-delivered microlearning weekly lessons, people manager roundtables, and a structured leadership program. This technology-enabled approach saved $15,000 annually compared to traditional leadership workshops while enhancing engagement and satisfaction.

Creating feedback loops between different learning methods

Effective skill development systems establish feedback loops that allow insights from OJT to inform formal training design and vice versa. At Boeing, the Leadership Center incorporated the action learning model throughout its programs after seeing its effectiveness in executive development.

This integration creates a virtuous cycle where:

Formal training provides foundational knowledge
OJT applies that knowledge in real situations
Challenges encountered during OJT inform refinements to formal training
Improved formal training better prepares employees for OJT

These feedback loops ensure continuous improvement and greater alignment between different development methods.

Conclusion

On-the-job learning represents a cornerstone of effective skills development in forward-thinking organizations. The evidence is compelling: companies with formalized training programs yield 218% higher income per employee and enjoy a 24% higher profit margin than those without such programs. Beyond financial benefits, well-designed OJT programs address the critical need for developing both explicit and tacit knowledge, creating engaged employees who are 17% more productive and drive 21% higher profitability.

The success of OJT initiatives depends on thoughtfully evaluating and selecting the right approach for your organization's specific needs. Structured programs with clear objectives, progressive skill-building experiences, and robust assessment methods provide consistency and measurable outcomes. At the same time, allowing space for unstructured learning capitalizes on spontaneous teachable moments that arise organically in the workplace.

In today's rapidly evolving business environment, organizations that excel at developing employee capabilities through effective on-the-job learning gain a significant competitive advantage. With the proper evaluation and selection of OJT approaches, you can create a learning ecosystem that builds essential skills and fosters engagement, innovation, and organizational resilience- the hallmarks of a truly skills-first organization.

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