What Mistake Do Companies Not Even Know They’re Making? *New Research*

It’s no surprise that staffing is good for companies. Also no surprise that a company’s investment in training/developing their workforce is a good sign. We know that separately, staffing and training are linked with performance gains… but do companies investment in staffing and training simultaneously mean anything? Are companies that heavily invest in recruiting AND training really any better off than a company who invests in recruiting OR training?

One of the premier journals in industrial-organizational psychology published research last month that shows the combined impact of selective staffing and training initiatives on a firm’s productivity (click through the image to link to the full article). Check out this chart:

Kim & Ployhart, 2014

Predicted prerecession firm profit trends (2000-2007) with interaction between staffing and training (Kim & Ployhart, 2014) — it’s a great article that covers a lot more than just this too.


Here’s what it means: Companies with more selective staffing AND more training outperform and outproduce their competitors. And they outdo their competitors in a huge way (see how far away that top line is from the others?).

That’s right, the vertical axis is showing firm profit.

If you still don’t smell what I’m cooking, check out the bottom trend line on that graph… the one for companies with High Staffing and Low Training… those fare the worst. Growing a work force without addressing training needs is a big mistake.

At Kinetix, we’re most known for our staffing and RPO capabilities. Our recruiters are awesome at what they do. But we’re also in the human resources consulting game. Which is where I come in. Kris Dunn and I are creating a new leadership development series for managers of people. We started with a simple idea: What are the most-have conversations that managers can’t mess up? We’ve wrapped product development on two of the ten modules in the series and I’m really happy with where we’re going. Anyways,

The one question I’ve gotten consistently?

Why is a staffing/HR consulting company getting into the training/development game?

Because we knew that staffing without training was a miss, now we’ve got the research to back it up. Plus, we really wanted to create a kickass leadership development program… which was reason enough to begin with.

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