Playing the training game and losing

On nearly every survey, training appears somewhere in the top 3 benefits that employees want from their employers. By the same token, HR professionals have long been advocates of training. So, creating training programs is a no-brainer, right? Not so fast, according to new research from Watson Wyatt. In fact, training is actually linked to lower shareholder value. Furthermore, companies that train during an economic slowdown have a market value that is 3.4% less than companies who do not train during this time. These conclusions are drawn from data analyzed from the 2001 Watson Wyatt Human Capital Index, an ongoing study of the linkages between specific HR practices and shareholder value at 750 large, publicly traded companies. The HCI study provides insight on what works - and what does not - when it comes to maximizing HR's contributions to the bottom line.