Does training influence outcomes of organizations?: Some Australian evidence
From previous research it appears that training of employees is strongly related to profit. The Australian Government collected data on approximately 10,000 registered small and medium enterprises conducting business in four studies over a four-year period. A panel of 3,867 firms were measured over the four years and the influence of strategic decisions made in year one (such as increase production) could be plotted on how they inclined decisions on other issues such as training. It seems that the amount of training is an important precursor for firms who wish to improve their productivity. Those firms who have desired to increase production in the following three years are also more likely to be involved in training whilst those who have decided to reduce their production levels tend to reduce their levels of training.
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