Signal Firms with comprehensive training report 218% higher income per employee

Summary

Companies that run comprehensive training programmes report income per employee that is 218% higher than companies without them. EY cites the figure to argue that firms should invest in talent and innovation to grow their intellectual resources. It observes that companies have instead channelled a disproportionate share of capital into dividends and share buybacks. The traditional pipeline of hiring, training, retaining and promoting was designed for slow-changing skills and predictable work, so EY calls for more continuous and agile investment in people. It also points to studies suggesting that research and development spending can lead to greater profitability and steady value creation.