Company-Based Determinants of Training and the Impact of Training on Company Performance: Results from an International HRM Survey

Abstract

This study uses an international dataset (26 countries) in examining the questions of what determines employee training from an organisational perspective and to what extent training investments contribute to company performance. The results indicate that the provision of company training is largely determined by firm-specific factors such as human resource management (HRM) practises. The results further show that two widely used measures of training (incidence and intensity) are largely determined by different factors. Staff turnover (mobility) does not appear to be a decisive factor in explaining the provision of training on a national level or company level though it is associated with lower profitability. However, the single most important factor associated with profitability is how much is invested in training (intensity), suggesting that the economic benefits of training outweigh the cost of staff turnover.

Keywords: Training, determinants, profitability, mobility, HRM practises

JEL Classification: J24, J41, J63