Fresh Pick of the Day, December 29, 2015: “Can Employee Training Lead to Higher Profits?”

From Knowledge@Wharton – “Does intensive internal training of employees lead to higher profits? In knowledge-based industries where the main asset is skilled professionals such as software engineers, the answer is yes, according to the research paper “Strategy, Human Capital Investments, Business Domain Capabilities, and Performance: A Study in the Global Software Services Industry,” by Joydeep Chatterjee, senior fellow at the Mack Institute for Innovation Management and professor of global strategic management at the University of Washington. But not all training yields equal benefits. Surprisingly, technological training such as those on computer languages did not boost project profits, the paper found. Rather, providing an employee training to raise their level of knowledge about clients’ industries did the trick.”

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