What the Research Says: Training → Better Profitability & Performance

  • According to one widely-cited analysis (Association for Talent Development / ASTD), firms that invest meaningfully in employee training — e.g. spending US$1,500 per employee vs. US$125 per employee — tend to show an average of 24% higher profit margins compared to firms that underinvest.

  • The same research also notes these companies achieve 218% higher income per employee than those without formalized training programs. 

  • Other studies aggregated by training-focused organizations report improved productivity: when employees receive training, companies often see a 17% boost in productivity.

  • Beyond internal gains, training can lead to downstream benefits affecting customer experience, error reduction, and operational efficiency — all of which factor into improved profitability.

Why this happens:

  • Training reduces mistakes and inefficiencies, which cuts costs and increases throughput. 

  • It raises the skill level across the workforce, enabling more value-added work and better use of human capital rather than over-relying on expensive equipment or brute labor. 

  • It boosts employee engagement and retention — reducing turnover, hiring and onboarding costs.

Sources: Training ROI - AWFI , Employee Training Statistics, Trends, and Data in 2025 | Devlin Peck , Research Consistently shows that training employees pays off with profits , Proven Impact of Training and Development on Employee Performance | peopleHum

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Daniel Pink’s “The Puzzle of Motivation” explores why traditional rewards like bonuses and incentives often fail to improve performance in modern workplaces. Drawing on behavioral science, Pink explains that people are most motivated by autonomy, mastery, and purpose. This talk offers practical insight for managers looking to strengthen employee engagement, encourage creativity, and build high-performing teams.

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Mentoring Matters

In this conversation, Carla Harris and organizational psychologist Adam Grant discuss what makes leadership truly impactful in today’s workplace. They explore how managers can build trust, communicate more effectively, and create environments where employees feel valued and motivated. The video offers practical insights on influence, authenticity, and leading teams through change — making it useful for managers who want to strengthen their leadership approach.
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