Measuring the Employer's Return on Investments in Training: Evidence from the Literature

Industrial Relations, Vol. 39, Issue 3, July 2000

Posted: 18 Jul 2001

See all articles by Ann P. Bartel

Ann P. Bartel

Columbia University - Columbia Business School, Finance; National Bureau of Economic Research (NBER)

Abstract

Three components of the literature on measuring the employer's rate of return to investments in employee training are reviewed: (1) studies that use large samples of firm-level or establishment-level data collected through mail or phone surveys, (2) studies that use data from one or two companies to conduct an "econometric" case study, and (3) company-sponsored case studies. The strengths and weaknesses of each of these approaches are evaluated and the estimated returns on investments (ROIs) are compared. The analysis indicates that the employer's return on investments in training may be much higher than previously believed. In order to obtain accurate information on the employer's ROI from training, researchers should be encouraged to gain access to company databases and to supplement them with data-gathering efforts to collect information on variables needed to isolate the effect of training.

Suggested Citation

Bartel, Ann P., Measuring the Employer's Return on Investments in Training: Evidence from the Literature. Industrial Relations, Vol. 39, Issue 3, July 2000, Available at SSRN: https://ssrn.com/abstract=241751

Ann P. Bartel (Contact Author)

Columbia University - Columbia Business School, Finance ( email )

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New York, NY 10027
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National Bureau of Economic Research (NBER)

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United States

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