Strategic Workforce Development: Assessing the Impact of Formal Training on Human Capital and Firm Outcomes in Ghana

Abstract:

This article examines how formal, firm-sponsored training contributes to human capital accumulation and measurable firm outcomes in Ghana. Building on recent evidence that organizational-level training improves performance while enabling innovation through skill upgrading and knowledge transfer, the study tests whether training intensity is associated with higher productivity, innovation adoption, and internal mobility (promotions) after accounting for firm size, sector, ownership, and management experience. Findings indicate positive and economically meaningful links between training and both productivity and innovation, with stronger effects among medium and large firms and knowledge-intensive activities; heterogeneity by gender composition and export orientation is explored. A balanced view is maintained: while training often enhances organizational outcomes, randomized evaluations underscore mixed short-run employment effects, highlighting the importance of training quality and transfer. Policy and managerial implications for strategic workforce development in Ghana are discussed.