Effects of employee training on the performance of North-American firms

Abstract

This article analyses the impact of employee training on the performance, measured in terms of Tobin's Q and total returns to shareholders, of North-American firms, by using a survey of senior executives in human capital management carried out in 2000. The results indicate that higher training can have a positive effect on firm performance through factors such as employee satisfaction and customer loyalty. Overall, it is found that higher levels of training are associated with significant benefits which can increase firm value.