Does investment in training help firms retain talent? Testing the commitment and human capital perspectives

Sangsuk Oh, Daejeong Choi, Chiho Ok and Owwon Park

International Journal of Manpower, 2025, vol. 46, issue 7, 1373-1387

Abstract: PurposeTo understand whether and why training helps firms retain talent, we develop and test a research model that integrates the two perspectives: the commitment and human capital perspectives. Specifically, we propose that training investment reduces voluntary turnover because training enhances employee commitment that subsequently decreases voluntary turnover (the commitment perspective). We also suggest that the firm-level relationship between training investment increases voluntary turnover because enhanced employee competence by training increases employees’ ease of movement and external marketability (the human capital perspective).Design/methodology/approachWe used panel data that includes 408 Korean firms employing more than 100 people that participated the survey from 2007 to 2015 (1,037 observations) covered 75 industries. With a longitudinal design, training investment was measured at year t-1, employee commitment and employee competence at year t, and voluntary turnover at year t+1.FindingsOur findings support the commitment perspective, showing the negative relationship between training investment and voluntary turnover mediated by employee commitment. On the other hand, the mediating role of employee competence in the relationship between training investment is not significant.Originality/valueWe develop a theoretical model to examine voluntary turnover as a key outcome and test the benefits and costs of training simultaneously. Consistent with the commitment perspective, our findings highlight the benefits of training to talent retention above and beyond human capital gains.

Keywords: Training; Turnover; Human capital; Commitment (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijmpps:ijm-09-2024-0614

DOI: 10.1108/IJM-09-2024-0614

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