Training, job satisfaction and establishment performance

Abstract

The Longer Term Impact of PerformanceCollier, Green and Pierson (2005) examined the relationship between training, profitability and establishment survival, using the 1990 Workplace Industrial Relations Survey (WIRS) and a follow-up survey conducted in 1998.They found that 181 of the original 1,693 establishments in the sample had closed down by 1998.Nearly 19 per cent of those establishments not undertaking training closed down compared with 13 per cent of those which did not (a significant difference), which suggests training increases the probability of business survival 9 .In another study using the 1998 WERS, Addison and Belfield (2004) find that training also has a significant positive effect on financial performance.However, the nature of the management of the firm may influence training outcomes.High performance workplaces may be able to extract a higher return from a given training input than is the case for other establishments.The SSDA's model of capability, linking individual capability with organisational action and development with deployment is an attempt to make this more explicit.As Tamkin et al. (2004) state we need to learn more about precisely how these aspects contribute to performance and to highlight differences between organisations/sectors providing high value added strategies and those pursuing low cost strategies.9 This work was extended in Collier, Green and Kim (2007) using WERS 2004.They found that 24 percent of establishments were non-training in the sense that they provided no off-thejob training to the largest group of non-managerial employees in the workplace.A substantial negative association was found between training and the likelihood of establishment closure.More than one in four non-training establishments shut-down over the period 1998 to 2004 compared to only one in nine training establishments.The estimated effect of providing training was to reduce the probability of closure by nine percentage points.

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