Farhan Hassan*
Training and Economic Growth

“A successful economic development strategy must focus on improving the skills of the area's workforce"

Rod Blagojevich American politician, Governor of Illinois.

“As companies grow and the war for talent intensifies, it is increasingly important that training and development programs are not only competitive but are supporting the organization on its defined strategic path.”

China Gorman, CEO at Great Place to Work

Training and Economic

There is a positive and significant relationship between economic growth and education and technical training the relation is one of the fundamental factors of development. 

sustainable economic development can not achive without substantial investment in human capital and determining just how well the country's economy will do.

Training and Development

Today's work environment have need of employees to be skilled in achievement complex tasks in an efficient, cost-effective, and safe manner. Training and Development is a performance enhancement tool is required when teams are not performing up to a certain standard or at an expected level of act.

 The difference between the actual level of job performance and the predictable level of job performance indicates a need for training. 

The identification of training needs is the first step in method for the training programl design and that is a role of human resource management-HRM in the organization is one of main factor of its succeed  as department.

Gaps Analysis 

In this approach the question is what are employees’ performances serving and Does it meet the organizational objectives? 

By clarifying these gaps now to design a program of specific learning objectives.

These gaps can categorize in mostly into three main approaches as below: Motivation, Skills & Critical Thinking.

Training, Benefits

Training and development can be described as "an educational process which involves the sharpening of skills, concepts, changing of attitude and gaining more knowledge in order to improve the performance of staffs.

Training is essential for organizational development some important benefits of individual and organizational such as enlarged productivity, improve talents also the reflection on motivation,  Job satisfaction, competency, and engagement, for the employees.


As Mr. Jack Welch, former CEO of GE said “Globalization has changed us into a company that searches the world, not just to sell or to source, but to find intellectual capital - the world's best talents and greatest ideas.”  So Talent improvement is the route of changing an organization, its staffs, its stakeholders, and groups of people within it, using planned and unplanned learning, in order to achieve and maintain a competitive advantage for the organization. 

While talent development is reserved for the top management, it is becoming gradually clear that career development is necessary for the retention of any employee. 

Many companies are now moving from the traditional term training and development to Talent development term which is becoming recently  popular in several organizations which  includes a diversity of components such as training, career development, career management, and organizational development, and training and development. 

Economic Growth

The economic growth rate is calculated from data on GDP. The rate of growth of GDP per capita is calculated from data on GDP and people for the initial and final periods. 

As Economics research shows that the government enable a higher sustainable rate of growth by improving the standards of education and training as one of the main factors of Growth in productive capacity (AS: Aggregate supply) which occurs also, due to below reasons: Improved technology developed by the private sector which enables higher labor productivity.

• Enhanced education and training by both private and public sectors.

• Improve the management techniques which allow more skilled workforce.

• Invest in infrastructure.

Increase in labor productivity, through better education and training one of the reasons of increase  LRAS (long run aggregate supply) or potential growth.


In this competitive world, organizations to survive and thrive nowadays, they must continually enhance the employees' skills and encourage learning as every day an innovation comes into the market and has a high impact on the country's economic growth which means an increase in real GDP.

LMS ( Learning Management System ) very useful tool for tracking and evaluating the training programs and could be upgraded by new training methods frequently in order to achieve all the objectives of Training and development of the organization.

Farhan Hassan

e-mail :fhshasn@gmail.com

Twtr: @farhan_939

Related News