Is The Value of Training Really as Much as a 20% Raise?

Is The Value of Training Really as Much as a Raise?
Could it be true?  Is the value of training as much as a raise?  According to a recent study of nearly 5,000 workers in Spain by Santiago Budría of the University of Madeira, company-provided training has the same effect on job satisfaction as a 17.7% net wage increase.  That surprised us.

What Younger Workers Want
While it may sound surprising and pay levels certainly need to be competitive enough to not cause disengagement, more and more studies are finding that younger workers expect their employers to invest heavily in their professional development to improve their knowledge and skills while advancing their careers.

A Personal Example
More than 25 years ago, when I joined Andersen Consulting (now Accenture), I deliberately chose a lower salary than many of my peers. At the time, it felt like a small sacrifice. What I was truly investing in was myself — the chance to learn, to grow, and to be shaped by a company that poured resources into its people. Looking back, the opportunities they gave me — mentorship, challenging projects, and structured development — were worth far more than any paycheck.

That early experience taught me that sometimes the best career decisions are measured not in dollars, but in the doors they open, the relationships they build, and the skills they nurture.

What if Training Did More than Just Boosting Job Satisfaction?
Based on insights from over 800 training measurement projects, the reality is sobering: training alone changes on-the-job performance and behavior for only about 20% of participants — regardless of quality. Yet, even on its own, training can boost job satisfaction to an extent comparable to a 17.7% wage increase. Now imagine the real impact when training isn’t just engaging, but actually transferred to the job — driving measurable behavior change and tangible performance improvements.

How to Ensure Your Employees Believe You Are Investing in Their Future
Higher pay alone does not guarantee stronger employee engagement or improved performance. Well-designed training, however — training that actually transfers relevant skills and knowledge back to the job — does. If you want your employees to feel that you are truly investing in their future, consider these research-backed strategies:

1. Cross-train for Perspective
   Give employees exposure to different roles so they understand the big picture of how the business works as a whole.
2. Master their Craft
   Ensure they are fully proficient in their current role, building confidence and competence.
3. Offer Growth Opportunities
   Provide access to learning new skills and stretch assignments that enhance their career success, both now and in the future.
4. Create Meaningful Work
   Design roles that challenge employees while giving them room to learn, contribute, and grow.

Practical Implementation Tips
When employees understand they’re being equipped with relevant tools, supported by their leaders, and held to meaningful roles that offer growth, they’ll believe you’re invested in their future. And that belief pays real dividends in engagement, performance, and retention.

• Align Training Content with Job and Strategy Priorities
  The more closely training mirrors the real work employees do, the greater the chance they’ll apply new skills. Job alignment is one of the strongest predictors of effective transfer.
• Ensure Managerial and Peer Support
  A strong “transfer climate” means peers and managers actively encourage use of new skills, provide feedback, and embed new behaviors into business practices. Without this, even high quality programs fail to deliver impact.
• Structure Follow through, Not Just One off Training
  Pre-training readiness, during-training action learning, and post-training reinforcement are all necessary to convert training into sustained performance change.

The Bottom Line
While it sounds a bit crazy to some that the value of training is greater than a raise, many employees would prefer opportunities for growth, learning, and advancement over better compensation.  Before you change your compensation plans to engage and retain top talent, ensure you are providing clear opportunities for people to learn and grow as part of your corporate training strategy.

To learn more about the transfer of training to improve performance and employee engagement, download 3 Steps to Building a Smarter Training Initiative – One that Gets Business Results