Do Employees Reciprocate to Intra-Firm Trainings? An Analysis of Absenteeism and Turnover Rates

This paper studies the behavioral effects of intra-firm trainings on absence behavior and turnover probability. We argue that participation in firm-sponsored trainings might lead to behavioral responses among employees. When firms pay for general trainings, employees may perceive this as a gift to which they can reciprocate by providing higher levels of effort or commitment. Based on the personnel records of a large multinational firm we find that, in contrast to human capital predictions, general trainings lead to a decrease in turnover rates. Furthermore, a short-term decrease in absenteeism indicates a temporary, reciprocal reaction by employees.