Learning Outcomes, Feedback, and the Performance Effects of a Training Program

We empirically evaluate the job performance effects of a 6 month part-time training program in a large retail chain, in which participants received feedback on their training success based on a final exam. The data's quasi-experimental structure allows comparison of sales revenue of trained and untrained managers before, during and after the training. We find that the training significantly increases sales of very successful participants by approximately 8% during and by 7% after the training period. However, the training has a substantial negative impact on the post-training sales performance of unsuccessful participants. The results indicate that the indirect motivational effects of training programs may be much more important than the direct effects of skill acquisition.