Shareholder ROI Evidence of Training Return
The American Society for Training and Development (ASTD) is a professional association of 70,000 corporate learning specialists from around the world.
Research based on member companies revealed that companies whose training investment is in the top quarter return 85% more value to shareholders than those in the bottom quarter.
ASTD defines a company's Total Stockholder Return (TSR) as the change in its stock price plus dividends, calling it the best measure of a stockholder's actual return.
Based on a study group of 575 US companies, ASTD found that companies whose investment in training was in the top quarter, had a TSR of 37% compared with 26%, the average for Standard & Poor's 500, and 20% for companies in the bottom quarter.
Companies in the study group whose investment was 35% or more above the average in one year saw an average 6% increase in TSR the following year.