Relationship between Training and Development and Employee Productivity

Abstract

Human capital is an important resource to achieve organizational competitive advantage. Thus, organizations should invest in tailor-made training programs to make their employees competent enough to sustain competitive performance. It is however observed that many organizations do not invest in employee training and often resort to cutting training budgets during economic slowdown. This study investigated the relationship between training and development on the one hand and employee productivity and organizational performance on the other. A review of 80 previous studies with a sample size of 10,004 respondents was undertaken. Results showed a positive correlation between training and development and employee productivity and organizational performance(r=0.6) and that 36% of the variation in employee productivity and organizational performance can be explained by human resource training and development. It is recommended that training be based on the actual needs of individual employees that employee participation in all the stages of training is critical and training and development should be a diverse continuous activity and that commensurate budgetary allocation should be made.