In response to the numerous discussions on Paying for Learning,
several recent large-sample, cross industry studies (as reported in the
June, 1995 issue of Training and Development) have found that firms that
use sets of innovative human resource practices have higher performance
than firms that do not use such practices. While I am not one to advocate
pay for learning merely to increase the bottom line, there is research to
support the fact that firms with no training programs have lower
stock-market values.
Casey Ichniowski analyzed the data from a sample of 200 US
manufacturing businesses to investigate the effects of personnel practices
on productivity and stock-market measures and found that businesses with
the highest levels of performance had high-commitment systems. Systems
that had many of the same features but no formal training programs had
significantly lower levels of labor productivity and lower stock-market
values. The findings suggest that businesses must adopt all of the
policies of a high-commitment system, if they are to enjoy its performance
advantages--and that training is a critical component.
Personally, I feel that financial gain is a poor reason to initiate a
training or educational program within an organization, but the pragmatist
in me realizes that for some organizations this may be not only a selling
point for programming but also the only approach they may be interested
in. I have dealt with industries who were not "sold" on an employee
training program until I told them that I could increase productivity by
30% the first run. In some cases, training programs have created an
opportunity for employee education programs...but only after the initial
profits were realized.
Fortunately, the majority of my clients view employee training and
education as an investment in the individual as well as the corporation.
Perhaps a partial philanthropic approach is better than none at all.
--
Pete
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__(*)/' (*)_______________________________________________
| |
| Peter L. Heineman, Manager of Contract Training |
| University of Nebraska at Omaha |
| College of Continuing Studies |
| 1313 Farnam Street |
| Omaha, NE 68182-0335 |
| (402) 595-2340 FAX (402) 595-2345 |
| Internet: pheineman@unomaha.edu |
|_________________________________________________________|
You will become as small as your
controlling desire; or as great as your
dominant aspiration.
James Allen