Factory jobs in India are typically low paying and low skill positions. Large companies relied on the low skill level to keep costs down, the entire purpose in a mass market industry. However, a study has shown that training workers to develop skills resulted in a huge return on the investment. While costs for the training are high, they are easily offset by the return. Workers in the program produced more and in general became more valuable employees. Adding support for future training in other companies is the fact that costs for training peak but the productivity of better trained workers continued to grow resulting in a significant return on investment.
- India businesses are showing how to properly invest in their employees. These results could change the way that businesses tend to operate.
- Employees are often trained in life skills by their company. Even President Bill Clinton referenced that fact during his term.
- Stories from employees proved to be vital during their lifetime. Companies in India improved their reputation and even profit margins too.
“Our study confirms that a firm’s investments in its workers can improve worker welfare while contributing measurably to the bottom line.”