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Who should pay the bill for employee upskilling?

Abstract : Upskilling is an investment in human capital that allows a worker to successfully undertake a new task or new project within his/her existing job. It involves costly effort on behalf of the employee to acquire new skills and new knowledge. In this context, one essential question for managers is whether to invest in workers' upskilling or let them pay for the investment in human capital and compensate them accordingly. Using traditional contract theory analysis, we show that the latter choice is not cost-neutral since the most flexible workers benefit of an informational rent. A profit comparison shows that it might be in the interest of a company to invest in worker upskilling, rather than to rely on worker self-training
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Preprints, Working Papers, ...
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Submitted on : Monday, October 26, 2020 - 10:30:09 AM
Last modification on : Monday, December 13, 2021 - 11:46:36 AM
Long-term archiving on: : Wednesday, January 27, 2021 - 6:30:04 PM


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  • HAL Id : hal-02977891, version 1


Radu Vranceanu, Angela Sutan. Who should pay the bill for employee upskilling?. 2020. ⟨hal-02977891v1⟩



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