Employee Training Impact on Retention
Studies showing the impact of employee training and development on employee retention include an IBM study, a Better Buy study, and a study published in the International Journal of Advanced Science and Technology.
Impact Of Training And Development On Employee Retention At Leading Food And Agri-Business Company
- A 2020 study published in the International Journal of Advanced Science and Technology examined the relationship between employee training and development and employee retention and further ascertained the extent of influence training and development has on employee retention.
- The research was conducted based on data collected from 120 employees of an Agri-food business, and the data was analyzed.
- The study found that "for every unit change in training, the employee retention score will increase by 0.114 units." This implies that for every 1% increase in employee training, employee retention increases by 0.114%.
- The study concluded that although training is a very low predictor of employee retention, there is a "significant relationship between training and the employee's intention to stay in the organization."
- According to the study, the above is due to the social exchange theory that makes employees feel obligated to reciprocate to employers by staying longer. In addition, training is also linked to increased trust in management, which helps reduce employee turnover.
IBM Study on The Value of Training
- IBM published a study on the value of training to employees and employers.
- The study found that new employees are 42% more likely to stay if they are receiving training that helps them do their job better.
- Only 21% of new employees intend to stay at companies that do not provide training.
- When training is provided in a company, 62% of new hires say they intend to stay.
Study on the Impact of Professional Development
- Better Buy conducted a study on the impact of professional development on employee engagement and retention.
- The study involved surveying over 2,000 employees, and the primary demographic for the study was managers.
- The study found that "employees with professional development opportunities have 34% higher retention."
- The study found that 75% of employees with access to professional development are likely to stay for another five years, compared to 56% of employees who had no professional development access.