Is the Training Train Out of Control? A Case of Evaluation Failure from New Zealand

In many countries there is a noticeable absence of robust debate over the decision to deliver free or subsidised training programmes to those running SMEs. Many governments now offer these schemes as a matter of course, despite the lack of empirical evidence that programmes aimed at individuals do in fact contribute positively to firm performance and therefore to economic growth. Many of these same governments also fail to evaluate the effectiveness of their intervention and there is no doubt that the value of their investments is not being maximised. It is likely that a similar situation exists in the firms that participate in training; a lack of robustness in the way they ensure there is a relationship between the training that is selected and the needs of employees in the context of their jobs. This paper explores the issues facing both firms and government agencies in New Zealand as they make decisions about investing in training as an enterprise development strategy. Using data from two different sources, the author suggests that the way in which firms and government agencies behave in relation to training investment decisions is flawed: those involved follow received wisdom, act upon hunches and all in all appear indifferent to ensuring their respective investments are maximised. This situation will continue until governments and firms realise that training is a key developmental strategy and gaining value from training events means that more rigour needs to be applied to planning and evaluation