From the
The Washington Post, June 11, 1995
Companies that treat employees as valuable assets, invest in training programs and use
innovative practices are more profitable than those that don’t, according to a study released last week.
The two year look at the workplace strategies of U.S. companies was conducted by management consultants Ernst & Young LLP for the Labor Department.
...For the study, researchers at Harvard and Wharton business schools in partnership with the Ernst & Young Center for Business Innovation, reviewed more than 100 papers
examining the business practices of thousands of U.S. companies.
...It also looked at the benefits of training and other employee-oriented programs.
..The findings ... confirmed what Ernst Young has observed among it’s clients. ... Among the findings:
· Economic benefits to the companies were greatest when they successfully integrated innovations in management and technology with the appropriate employee training and
"empowerment" programs.
· Companies investing in employee development enjoy significantly higher market values than their industry peers.
· Companies that were first among their competitors in implementing new management practices reaped the largest rewards.
According to the study, Motorola estimates that it earns $30 for every $1 invested in employee training, while Xerox Corp. said, that in cooperation with its employee union, it has
reduced manufacturing costs by 30 percent and halved the time needed to develop new products.
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PMRi ®