Successful training and development can have a positive impact on engagement, productivity, job satisfaction, and retention. This analysis focuses on retention and examines whether investments in on-the-job training leads to fewer occupational separations. I also examine whether investments in training and development specialists can increase job tenure.

Turning to on-the-job training, I first identify the levels of on-the-job training provided in an occupation. I categorize on-the-job training into six bins–apprenticeship (e.g. carpenters, electricians, plumbers), internship/residency (e.g. architects, psychiatrists, physicians), long-term on-the-job training (e.g. dancers, firefighters, bakers), moderate-term on-the-job training (e.g. photographers, correctional officers, pilots), short-term on-the-job training (e.g. occupational therapy aides, bartenders, secretaries), and no on-the-job training (e.g. chief executives, accountants, lawyers). I then examine whether occupations that invest in more on-the-job training experience less occupational transfers, defined as the projected number of workers permanently leaving an occupation between 2018 and 2028, than those who do not invest in on-the-job training.

I run a regression of projected occupational transfers between 2018 and 2028, as opposed to labor force exits (e.g. retirement), on on-the-job training. The regression I run also includes controls for levels of education needed for entry into the occupation, years of work experience required, and employment change between 2018 and 2028.

I find that long-term on-the-job training leads to fewer occupational transfers than occupations with no on-the-job training. Occupations that provide long-term on-the-job training see 13,232 fewer projected occupational transfers between 2018 and 2028 than occupations that do not provide training. This statistic is very significant, which means that the drop in occupational transfers due to long-term on-the-job training is unlikely to be due to chance.

I also find that occupations providing moderate-term on-the-job training lead to fewer projected occupational transfers than occupations providing no on-the job training. Those occupations that provide moderate-term on-the-job training see 8,924 fewer projected occupational transfers than occupations with no training. This statistic is also significant, but less so than long-term on-the-job training. Finally, occupations providing apprenticeships and internships lead to fewer projected occupational transfers than occupations with no training, but those statistics are highly insignificant.

Next, I turn to investments in training and development specialists on tenure. I look at the percentage of an industry made up of training and development specialists and analyze how this impacts the average tenure of employees in an industry. The idea is that industries that invest more on training and development specialists are more concerned with supporting the progression of their employees.

I run a regression of average tenure in 2018 on percentage of an industry made up of training and development specialists. I also control for the employment levels in 2018. I find that a one percent increase in percent of industry made up of training and development specialists leads to a 3.21 year increase in tenure. To put this finding in context, the average percent of training and development specialists in an industry is about 0.21 percent. The minimum percent of industry is 0% and the maximum is 0.6%. Therefore, a one percentage point increase is a very large increase, which puts the 3.21 year tenure figure in context.

This analysis shows that training and development increases retention. Those occupations that provide long-term on-the-job training see decreases in occupational transfer rates. Also, industries that invest in training and development personnel see increases in tenure. The push for more employee development seems to produce positive results in terms of employee retention and tenure.

Sources: https://www.bls.gov/emp/tables/occupational-separations-and-openings.htm, https://www.bls.gov/news.release/tenure.t05.htm, https://data.bls.gov/projections/nationalMatrix?queryParams=13-1151&ioType=o, https://data.bls.gov/oes/#/occGeo/One%20occupation%20for%20multiple%20geographical%20areas, https://www.bls.gov/emp/documentation/nem-definitions.htm