ERIC Number: ED391003
Record Type: RIE
Publication Date: 1995-Sep
Reference Count: N/A
An Organization's Economic Return on Training Investment.
Pucel, David J.; Lyau, Nyan-Myau
A study examined the relationship between investment in training and labor productivity in a sample of 237 large and medium-size Taiwanese firms producing auto parts. Of the 162 firms (68.4%) that returned usable questionnaires, 142 (59.9%) had training programs and 131 (55.3%) provided full cost data. The data were analyzed by multiple regression to determine the relationship between investment in training and labor productivity at the firm level while controlling for other variables affecting labor productivity. In U.S. dollars, the 131 firms' total training costs in 1992 averaged $79,784 ($31,847 in direct costs and $47,937 in opportunity costs). The number of workers per firm averaged 285, and the firms' per-worker training investment and direct training costs averaged $280 and $112, respectively. The average yearly sales per worker for all the firms reporting training was $91,280. A multiple regression analysis established that, if an average firm had a current value added per worker of approximately $43,040 and an average investment in total training cost per worker of $280, increasing the investment in training per worker by 10% ($28) could yield an increase in value added per worker of $430, provided the increase could occur without any need for compensatory investments in capital or other additional resources. (Contains 18 references.) (MN)
Publication Type: Speeches/Meeting Papers; Reports - Research
Education Level: N/A
Authoring Institution: N/A
Identifiers: Return on Investment; Taiwan
Note: Paper presented at the World Conference of the International Federation of Training and Development Organizations (24th, Helsinki, Finland, September 11-14, 1995).