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An exploration of the relationship between training grants and profitability of UK construction companies
Author(s) -
AbdelWahab Mohamed,
Dainty Andrew R. J.,
Ison Stephen G.,
Hazlehurst Guy
Publication year - 2008
Publication title -
international journal of training and development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.558
H-Index - 26
eISSN - 1468-2419
pISSN - 1360-3736
DOI - 10.1111/j.1468-2419.2008.00304.x
Subject(s) - profitability index , workforce , business , training (meteorology) , context (archaeology) , government (linguistics) , order (exchange) , descriptive statistics , training and development , relation (database) , accounting , marketing , finance , economics , management , economic growth , computer science , paleontology , linguistics , philosophy , physics , statistics , mathematics , database , meteorology , biology
A levy/grant system exists in the UK construction industry to provide financial support for companies undertaking training activities. With the current UK government skills policy, there is an emphasis on ensuring that training support provided to employers is aimed at enhancing companies' profitability. This paper explores the profitability of construction companies in relation to training grants. Inferential and descriptive statistics were used to analyze a uniquely combined dataset over the period 2002–2005. The research revealed that there is not a simple linear relationship between training grants and profitability. However, large and more profitable companies claimed more training grants in relation to the following areas of training: management, qualifying their existing workforce (certifying the skills of their existing workforce) and developing training plans. The authors argue that training grants should be targeted and focused towards specific areas of training if profitability gains are to be achievable. Future research should consider training grant utilization within the context of construction companies in order to ascertain the real contribution of training grants to their profitability.