How effective is training?
Laurie Bassi measured how well employees are trained and developed (Delahoussaye, et al., 2002). She writes that organizations that make large investments in people typically have lower employee turnover, which is associated with higher customer satisfaction, which in turn is a driver of profitability (p22). A second driver is manager proficiency — good managers determine if people stay or go, and this is also influenced by training and development. She further writes that the education and training variable is the most significant predictor of an organization’s success as compared to price-to-earning ratios, price-to-book statistics, and measures of risk and volatility.