p economic crisis or high turnovers have an influence

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Investments
in training and development are essential for improving employee
performance because
they increase
productivity,
effectiveness, social competence and
enable
to gain
competitive advantage.

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Opponents
claim that
hiring new employees
or the method
of outsourcing adds
new knowledge and skills.
A
new recruited candidate may have
experience
with new ways to operate or a new perspective, which
an
internal
employee
does
not have.
It
is found that companies use those strategies to gain staff, with
a
high process related
knowledge.
As
a consequence outsourcing
has become a growing trend, which
can be confirmed through
the annual
revenue
of
76.9
billion U.S. dollars of the
global outsource
market.
Figure
1. Outsourcing
statistics for global market size
Source:
(Outsourcing
insight, 2017)

Figure
1
shows
the global outsourcing market size from 2000 to 2016. To
a limited extent
the revenue
has been
unsteady recently,
however,
the amount clearly
increased
compared with the early
21st
century. Considering
the substantial total value of 76.9
billion U.S. dollars,
figure
1 implies
an outsourcing policy is likely
to be followed
by a remarkable
number of companies all over the world. In
addition,
there
is an
expanding number of opportunities to hire employees over the
internet. “There
are a variety of platforms that serve freelancers and employers. For
instance, Upwork,
PeoplePerHour, or Fiverr can be useful for finding a quick,
reliable solution” (“Training
New Staff versus Outsourcing,” 2016).
A
further common criticism argues
that the
benefits of investments
in training
and development materialize
late
and
might result
in
financial difficulties.
The
main
disadvantage of
training is that the
profits emerge
late, while
its realization
consumes time and money immediately.
According
to the Association
for Talent Development (2016),
the
average training cost per employee was
$1,252. For smaller
companies with less
than
500 workers, that expense
is even higher. Moreover,
the training
cost can turn into a major expense, for some companies. For
example,
an economic crisis or high turnovers have an
influence
on a company’s
financial situation, as a
consequence training
budgets are often reduced

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