Excerpted from: Proof That Training Works
Online Learning News and Reviews
24 May, 2005
To subscribe: http://www.vnulearning.com
According to Lauri Bassi, CEO of McBassi & Company Inc. and former
VP of research at ASTD,
a “firms' investment in employee training
is the single most powerful predictor of future
financial performance ”.
Through her research, she has discovered that “historically,
[McBassi & Co.'s overall] portfolios of large investing firms
have beaten the market by about 33 percent per annum.… If you
can consistently outperform your competitors by one-third each year,
within a matter of only a three-year period you can double your performance
relative to theirs.
She continues that “it has to do with a leadership team
that … truly perceives employees as an asset and not a
cost…” A firm should “… not resort to
layoffs as a first reaction to any small downturn in their business.
(After all, if they are investing in their people, the last thing
they want to do is lose an important asset.)” To succeed,
companies need … a long-term-investment culture … that
has the strength and resilience to withstand the pressures to
which so many companies fall prey, such as maximizing this quarter's
earnings to the detriment of the organization's long-term health.
“
For highly developed nations such as ours, the only way to compete
in [today’s rapidly changing globalized economy] is through
superior human capital management (HCM) -- of which training
is a very important component. Firms that don't take HCM and
training seriously in this environment are going to either go
out of business completely or just fade into irrelevance.”
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