FINANCIAL PERFORMANCE ENHANCEMENT THROUGH EMPLOYEE DEVELOPMENT: EVIDENCE FROM KARACHI CORPORATES

Abstract

The present research focuses on the effects of training and development programs on the firm’s performance in the corporate sector of Karachi, Pakistan. It becomes crucial in the current fluid business environment accelerated by technological changes to establish the link between the theory-supporting human resource training programs and financial measures in organizations’ performance. This paper identifies training and development as important strategic tools in increasing efficiency, job satisfaction, and organizational output. The first research focus is to determine how far the training activities have propelled financial benefits, including sales revenue, cost advantages, and profitability. Following an exploratory quantitative research method, data was obtained from 102 corporate employees stationed in Karachi through questionnaires. Data analytical tools such as logistic regression was used in this study to establish a relationship between training and development and financial performance indicators. In the findings of the study, it becomes quite clear that laudable training activities tend to enhance positive organizational financial performance. Based on the analysis, the following suggestions have been made. Companies should consider offering considerable investment for the development of their employees, which will enhance the competition of the business and grant top financial results. Moreover, there is a need for organizations to conduct periodic assessments on the added value of their training initiatives for the improvement of organizational employee performance and the financial bottom line. The present work contributes to the development of the existing literature by presenting the empirical findings highlighting the significance of the training and development activities in achieving effective financial performance improvement in the given field of the corporate segment. When training and development interventions are aligned to the organizational goals, and effective methods of evaluation are used, organizational competitiveness improves, and sustainable business growth is achieved in today’s challenging Karachi, Pakistan business environment.