Training within Firms

Brayan S. Diaz, Andrea Neyra Nazarrett, Julian Ramirez, Raffaella Sadun and Jorge A. Tamayo

No 33670, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Training investments are essential for improving worker and firm productivity, yet their implementation is often hindered by low participation rates and insufficient worker engagement. This study uses data from three firms—a car manufacturer, a quick-service restaurant chain, and a retail company—to show that variation in training participation among employees is closely tied to differences in middle managers’ behavior and practices. Middle managers who actively engage with their employees and emphasize their well-being and development are associated with significantly higher participation in training programs. These managerial differences significantly influence employee performance and absenteeism, especially during periods of organizational change. Together, these findings underscore the importance of middle managers in bridging the gap between centrally designed HR policies and their effective on-the-ground execution.

JEL-codes: J24 L23 M12 M53 (search for similar items in EconPapers)
Date: 2025-04
Note: LS PR
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