Relation of selected factors of further education in organizations development and profitability of organizations

Abstract

Purpose – further education and training play an important role in organizations development. The paper aims to analyze its relation to the financial performance of organizations, particularly to find which factors of further education are significantly related to the organization profitability indicators. Research methodology – it is an empirical study based on 142 profit-oriented organizations operating in the Czech Republic. Multiple median regression was used to investigate the correlation among organization profitability and talent management, long-term strategy, education evaluation, investments into education, industry sector, organization size and its owner. Findings – the results provide evidence that talent management, education evaluation, investments into education are significantly related to the considered profitability indicator ratios (ROA, ROE, ROCE, ROS). Research limitations – follow from the size of the research sample, its extension is planned for the continuation of our research. Practical implications – the results of the research could stimulate organizations to pay more attention to the key factors of further education in their development so as to improve their financial performance. Originality/Value – the authors are not aware of any other empirical study from the post-transformation economies analyzing the relation of further education and the organization´s financial performance. It extends our pilot study presented at ECMLG 2017 in London. The results provide a suggestion for organizations which steps to take in order to gain the most from further education.