Impact of Employees’ Training on Their Performance Improvements

Purpose: Performance management is an increasingly important part of strategic human resources management. Employee performance is related to many factors, but education and training are two of the most significant. So far, literature has confirmed that a strategic focus on the employee training leads to the successful achievement of an organization’s goals, development, and ultimately to performance. However, there is no consensus about the right level of the training. Methodology/Approach: The objective of this article is to analyze the impact of training programs on employees’ performance in case of 839 analysts in a Mexican public financial institution. The research was carried out over a two-year period and the data were evaluated using descriptive statistics and ANOVA. Findings: The results reveal that low number of training hours, together with excessive training of more than 166 hours per year has limited or no impact on the performance. In fact, when employees had more than 166 hours of training, the training was negatively related to their performance. Research Limitation/Implication: Management of organizations should carefully plan the amount of provided training hours per each employee. The impact of training varies based on seniority and number of hours spent on training, but there are no significant differences between employees’ gender. Originality/Value of paper: The originality of this article lies in the identification and evaluation of impact of employee training hours on performance in organization, as well as in the identification of breaking point of number of training hours which may lead to actual decrease of performance.