Does Training Pay?

15 October 2013
Comments: 0
15 October 2013, Comments: 0

If knowledge is the engine of the new economy …
then learning is the fuel that powers it  

Hiro Takeuchi

The 2010 IT Salary and Skills Report from Global Knowledge and Tech Republic surveyed over 19,500 IT professionals worldwide on salary, job satisfaction, current and expected business conditions, tenure, certifcations held and training taken.

One of the conclusions is that training not only improves performance “more than 84% of managers who sent their staff to receive training felt staff members were more effective in their job role after training” but also improves pay “…job performance was the key driver for those who received a raise”.

The survey also found a poistive correlation between certifcation and pay. “Overall, professionals who had earned an IT or project management certification during the last five years earned an average of $5,242 more than their counterparts ($85,628 vs. $80,386).” According to the survey, the mean salary in the U.S. for someone with Oracle 10g certifcation was $114,744.

This survey is, in fact, just the latest in a long line of research going back many years that points to the benefits of training. One study by Ann Bartel at Columbia University in the United States, calculated that the rate of return to the enterprise from training was in the order of 35 per cent, assuming that skills depreciate at ten per cent per annum (a half life of 5.4 years). Many other studies in the United States, Europe, the U.K. and Austrlia have reported similar findings including Holzer et al, 1993, for the US, Alba-Ramirez, 1994, for Spain, d’Arcimoles 1997, Harel and Tzafrir 1999, Bartel 2000, Richard and Johnson 2001, NCVER, 2001, for Australia, Zwick, 2002, for Germany, Boselie et al 2003, Paul and Anantharaman 2003, Aragon-Sanchez 2003.

See Smartsoft Computing for help with your Oracle and other IT training requirements.

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