EMPLOYEE TRAINING AND DEVELOPMENT COSTS AND RETURN ON ASSET OF LISTED INDUSTRIAL GOODS MANUFACTURING FIRMS IN NIGERIA

Abstract

The study was to determine the relationship between employee training and development cost on return on asset of listed industrial goods manufacturing firms in Nigeria. The theory underpinning this study is Goal Setting theory. Ex-post facto research design was considered suitable for the study. The population of this study was thirteen (13) industrial goods manufacturing companies listed on Nigeria Exchange Group. Sample size of ten (10) firms representing about 76% (percent) of listed industrial goods firms in Nigeria was obtained. The non-probability sampling technique was adopted in this study. The findings of this study showed that, Employee training and development costs showed positive and significant relationship with return on asset. The study concluded that employee training and development costs will have a significant positive relationship on return on assets, indicating that investments in enhancing employee skills and capabilities will lead to improved asset utilization efficiency. It was recommended that firms should prioritize strategic investments in employee training and development programs to enhance skills, knowledge, and capabilities, thereby potentially improving operational efficiency, productivity, and ultimately, net profit margin. Firms should strategically allocate resources towards enhancing employee training and development programs.