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Training and financial performance: what the studies say

Studies on the link between training and financial performance show a positive correlation that is difficult to isolate causally. The most convergent solid data come from the ATD, McKinsey and the World Economic Forum: companies that systematically invest in skills development outperform their sectors on productivity, retention and innovation indicators. Causality remains debated, but lack of training is documented as a factor in underperformance in organisations undergoing transformation.

What McKinsey says

The McKinsey Global Institute published in 2021 a report on the future of work post-pandemic that estimates companies investing in training and internal redeployment recoup their investment in less than two years, through productivity gains and reduced hiring costs.

A complementary McKinsey study (2023) on "learning organisations" identifies five common characteristics of the highest-performing organisations in their sector: an above-median training investment rate, training programmes anchored in strategic priorities, a systematised lessons-learned culture, regular skills measurement, and visible leadership commitment to development.

What Deloitte says

Deloitte's Human Capital Trends measures HR practices in several thousand global organisations each year. The 2022–2025 editions converge on one point: organisations investing in the "skills-based approach" (managing by skills rather than by roles) report higher performance levels than those managing HR through the traditional organigram.

According to the 2024 edition, "skills-based" organisations are 63% more likely to achieve their performance objectives, and 57% more likely to adapt quickly to market changes.

What the ATD says

The Association for Talent Development publishes its annual "State of the Industry" report, which benchmarks training practices in several hundred American and international organisations. 2023 data show that high-performing training organisations invest on average 1,252 dollars per employee per year in training, versus 805 dollars on average. They also show voluntary turnover 25% to 30% lower.

What to conclude

Correlation is not causation, but the absence of systematic skills development is a documented handicap. The most useful question is not "does training improve finances?" but "which skills, if not developed, will prevent us from executing our strategy?"


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