Archive
By Staff Report
Jan. 13, 2004
The chart below shows a positive correlation between training expenditures both revenues and profitability. In other words, the more a company spent on workplace learning in 2002, the greater its sales and profits.
Interestingly, the data does not show a direct, positive correlation between training dollars spent and human resources metrics such as retention and employee satisfaction. In other words, according to this survey, more dollars spent on employee training didn’t necessarily mean a happier workforce.
Expenditure per Employee |
Expenditure as % of Payroll |
|||||
Self-Rating of Performance Compared to 2001 |
Better | Same | Worse | Better | Same | Worse |
Ability to Retain Employees | $571 | $253 | $702 | 1.97 | 0.45 | 1.47 |
Employee Satisfaction | $603 | $419 | $640 | 1.40 | 0.71 | 1.77 |
Quality of Products/Services | $497 | $419 | $541 | 1.14 | 0.71 | 1.80 |
Customer Satisfaction | $307 | $419 | $468 | 0.75 | 0.71 | 3.18 |
Sales/Revenues | $1,109 | $705 | $563 | 4.66 | 1.54 | 2.50 |
Overall Profitability | $987 | $685 | $524 | 3.70 | 1.42 | 1.71 |
Self-Rating of Performance Compared to Other Organizations |
Better | Same | Worse | Better | Same | Worse |
Ability to Retain Employees | $743 | $329 | $996 | 2.58 | 1.55 | 2.72 |
Employee Satisfaction | $736 | $419 | $634 | 2.43 | 0.71 | 1.51 |
Quality of Products/Services | $749 | $329 | $703 | 2.89 | 1.55 | 2.46 |
Customer Satisfaction | $665 | $329 | $648 | 2.42 | 1.55 | 3.10 |
Sales/Revenues | $842 | $709 | $619 | 2.33 | 1.74 | 1.68 |
Overall Profitability | $815 | $654 | $477 | 2.46 | 1.51 | 1.35 |
The information is fromASTD’s 2003 State of the Industry Report.
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