Does the reality of workplace training match the theory? An analysis of public sector employees’ training decisions

The provision of, and participation in, workplace training and development has received significant recent attention in Australia in the face of rapid technological change, an ageing labour force and a growing skill shortage. Accordingly, many organisations have put in place policies and practices that ostensibly aim to encourage and support increased employee participation in training programs. From a theoretical perspective, human capital theory offers substantial insights into the economic benefits of training for the employee and the firm, and provides various predictions about the characteristics of individuals most likely to choose training programs. Drawing on an experimental choice analysis conducted in an Australian public sector organisation, this paper examines the applicability of some of these theoretical predictions to workplace training. In particular, it focuses on the training choices of highly educated workers.