Maximizing business potential: The symbiotic relationship between employee training and business success

In the modern business landscape, the symbiotic relationship between employee training and business performance in a form of sales and marketing aspects has become increasingly evident. This research delves into the pivotal role of vocational training within European companies, particularly in the context of their impact on business outcomes of organizations. Through a deep analysis of secondary data from the Continuing Vocational Training Survey (CVTS) carried out by Eurostat, this paper uncovers the link between effective training practices and their subsequent impact on sales performance as well as interconnection with marketing initiatives. The findings reveal that businesses can significantly enhance its strategies by investing in employee training programs that foster skills demanded by the evolving market. The results underscore that companies adopting a holistic approach to employee training and aligning it with sales activities are better poised to thrive in a competitive landscape. This article serves as a valuable resource for business leaders, HR professionals, sales managers, educators, and researchers looking to understand and harness the interplay between employee development and business success to navigate the dynamic business world effectively.

1 Introduction

Nowadays, businesses face the essential need for employee development, which can enhance efficiency and lead to successful long-term functioning of the enterprise. Employee skills and knowledge support organizations during global and local market circumstances. Vodák and Kuchárčíková (2011) define the employee training process as continuous learning, which may be suspended for a while under outside circumstances. Nevertheless, for developing company competitiveness and expanding into other markets, vocational training and development are imperative conditions for success (Sanchez et al. 2003). As a positive output, it is possible to identify new employee education solutions and innovative attitudes towards vocational training in different companies. Due to stated above reasons, the symbiotic relationship between effective employee training and sales growth became increasingly evident. By equipping their teams with the latest insights and competencies, companies were poised to enhance their sales performance. The interconnectedness of employee education and sales growth is a critical determinant of success in this challenging era. Organizations that embraced this holistic approach not only ensured the continuous development of their workforce, but also fortified their market position. The evolution of vocational training and education emerged not merely as a reactive measure, but as a proactive strategy to drive sales excellence, foster effective sales performance, and adapt to dynamic business landscapes (Zehetner 2019; Katsikeas et al. 2018; Cespedes 2014; Daniel 2018).

This paper undertakes a comprehensive analysis of the interplay between employee development, contemporary trends utilization through the training (VR, AI, Intelligent Learning), and their potential influence on sales growth and the effective sales performance of the companies. In addition to this, the study delves into the pivotal role of vocational education and training within European companies, particularly in the context of their impact on sales outcomes. By leveraging contemporary trends, the paper showcases how these enterprises can leverage educational initiatives to bolster the efficiency of employee training, thereby directly enhancing their ability to drive sales strategies. Through a deep analysis of secondary data, the research aims to uncover the link between effective training practices and the subsequent impact on sales growth. Ultimately, this paper weaves a compelling narrative that underscores the symbiotic relationship between employee training and related sales activities. It demonstrates how organizations that strategically align these components are better poised to thrive in a competitive landscape, leveraging trends to cultivate a workforce capable of driving revenue.

2 Methodology

The research paper was conducted based on the detailed literature review, previous observations, and quantitative data analysis from the Continuing Vocational Training Survey (CVTS) carried out by Eurostat. The CVTS is part of the EU life learning statistic database. The survey’s primary goal is to collect data and information about the development of employees’ continuous vocational trainings within European enterprises. Furthermore, the CVTS investigates the enterprise’s total and partial investments in its employees’ training and development activities. The CVTS is always conducted and grouped based on predefined topics focusing on Continuing Vocational Training (CVT) strategies, characteristics of CVT courses, assessment of training activities, total time spent, courses related costs, participants’ information, and factors. For the purpose of this paper, detailed analysis will mainly observe two last contacted surveys. The CVTS 5 was conducted in 2015 with a total number of 30 involved markets (EU 28, Norway, and North Macedonia). The CVTS 6 was conducted in 2020 in 30 countries (EU 27, Norway, North Macedonia, and Serbia). The statistical population was structured based on enterprises with ten or more employees belonging to specific NACE sectors. The total number sample size of CVTS 5 was 111,000 enterprises. The total number sample size of CVTS 6 was 113,000 enterprises. For the purpose of this paper and better visibility, the author decided to apply and analyze data from Central European markets, specifically Germany, Czechia, and Slovakia.

The methodology used in this research paper primarily involved a detailed literature review, analysis of secondary data, and a comparative study of available information from various sources. The specific methodological methods utilized in this article are as follows:
1. Literature review: The author conducted a comprehensive literature review to understand the existing research in the field of CVT and its impact on sales performance. This involved an in-depth examination of academic papers, reports, and studies related to the topic.
2. Secondary data analysis: The primary research method used in this paper is the analysis of secondary data. The author examined data collected by Eurostat related to CVT in European enterprises. This data was collected from European countries, including Germany, Czechia, and Slovakia, and spanned the years 2015 and 2020.
3. Comparative study: To answer the research questions, the author compared the data from different countries and years to identify trends and patterns related to CVT expenditures and types of training.

The results and key findings of this research paper were based on the secondary data analysis, specifically examining the interactions between training and sales performance. The primary data source was Eurostat, and the author analyzed data related to the cost of CVT courses and the types of training provided by enterprises. To answer below research questions, the author conducted a detailed literature review of observed topics, identified previous research in the field of CVT / Sales Performance and compared available secondary data. Analysis of defined inputs served as a foundation to answer research questions to support the conclusion of this paper.
• RQ1: How can the experiences of different Central European countries, in terms of skills development, their impact on sales performance and marketing strategies, inform best practices for enhancing sales directions?
• RQ2: Which specific employee skills, developed through contemporary CVT trends, directly translate to more effective Sales performance?

3 Results and key findings

This chapter represents the main findings from the secondary data analysis in answering two stated research questions about primary interactions between three utilities – training, sales performance and the company marketing potential. For the purpose of this paper and to confirm critical findings from the literature review and answer research questions, the author used secondary data from Eurostat related to CVT in European enterprises. Table 1. represents data on the cost of CVT courses in European countries. All related charges have been converted to Purchasing Power Standards (PPS) to compare price levels in different countries. Based on Eurostat’s data, the average CVT course expenses were 1,441 PPS per participant. In 2020, the lowest average expenditures per country were identified in the Czech Republic (320 PPS) and the highest costs in Ireland (2,315 PPS). However, for this paper, it was determined to choose three central European countries with the average highest expenditures (Germany – 1,678 PPS), the average lowest expenditures (Czechia – 320 PPS), and one additional central European country (Slovakia – 628 PPS). The cost differentiation between mentioned countries is highly varied. In Germany, CVT is based on mixed financing by different private and public stakeholders. The enterprises are covering a considerable part of training costs for individual employees. Nevertheless, government representatives are also involved in the CVT processes within organizations. The federal government and state contribute to financing training based on the preparation programs for the employees in different ministries. The same situation is visible in Slovakia, where four main elements and their combinations fund CTV. The Slovakian government involves public finances and EU funds to support the CVT process in the republic. Nevertheless, the learner and the employer also cover the major part.

Table 1: Cost of CVT courses per participant
Source: Author based on data from Eurostat (2015, 2020)

Due to the worldwide epidemiological situation related to COVID-19, it is possible to identify the decrease in the average in investigated countries. The main reason was the unacceptability of providing CVT courses in a standard „in-person“ participation way. Nevertheless, Table 1 is visible to define the exception (Germany), where 15 PPS increased the average costs. Besides the decreasing expenditures in most countries, standard on-the-job and partly off-the-job forms of employee training can be considered cost inefficient. Due to those reasons, contemporary VR, AI, and intelligent learning trends may support enterprises nowadays. According to the PwC 2022 metaverse survey, the training process via the VR tool can be more cost-effective than other forms. Based on the results from the survey, VR training should achieve cost parity with eLearning in the case of 1,950 successfully trained participants. Furthermore, the PwC survey confirms employee effectiveness during the training. Based on the results, the average time to complete VR training took approximately half an hour. However, the same task in the eLearning environment took time and more employee capacity. Other analyses from Eurostat can support the above statements. Based on the data, the most frequent limitations for providing CVT within enter-prises were lack of employee time (36.8% of respondents) and high costs of CVT courses on the market (23.4%). Hence, as a positive measure, VR reality can be evaluated to support enterprises with the barriers mentioned above.
Table 2 demonstrates findings about enterprises providing CVTs to their staff through different types of employee training. The below information includes off-the-job training methods and represents transformations in time. Table 2. indicates the dramatic changes in the results of CVT at conferences, trades, and fairs, as well as CVT in the form of external courses during 2020. The most dramatic decrease in providing CVT at conferences and fairs can be identified as a result of a 12.3% decrease compared to 2015. Relatively, a similar condition was acted in the case of CVT in the form of external courses in Slovakia, where the difference between the researched periods constitutes a decrease of 16.1%. Comparatively equable percentages demonstrate the Czech Republic in the case of CVT at conferences and fairs (6.7% decrease) and Germany in CVT in the form of external courses (2.7% decrease). As mentioned earlier, one of the significant influencers was an epidemiological circumstance in the form of COVID-19. However, due to the mentioned worldwide issue, enterprises moved up to new digital formats and solutions for training. Despite the decrease of CVT at conferences and in the form of external courses, there was an increase in self-directed learning within the training environment. The highest level demonstrated Germany with a 15.3% increase in 2020 com-pared to 2015. A relatively positive growth was identified in Czechia (6.8%) and Slovakia (4.6%).

Table 2: Enterprises providing training by type of training
Source: Author based on data from Eurostat (2015, 2020)

Nowadays, European enterprises actively develop their CVT strategies (Yan et al. 2021; Laureti et al. 2022). Dynamic changes and the global digitalization of processes radically influence employee skills and knowledge in Central Europe (Brodny and Tutak 2022). To identify primary skills needed for the development of central European enterprises, the author prepared Table 3 based on available secondary data from European Centre for the Development and Vocational Learning (CEDEFOP). The information below demonstrates relevant significant skills demanded by companies in the year 2021.

Table 3: Enterprises providing training by type of training
Source: Author based on data from CEDEFOP (2021)

The leading position within demonstrated requested skills is „Accessing and analyzing digital skills“ and „Using digital tools“. In all researched countries, the secondary data indicate the highest percent share compared to other employee skills. The highest results (27% and 22.3%) were identified in Slovakia. Following different studies, such a fast demand may be caused by the automotive industry development in this country. The automotive industry is one of the primary drivers in the national economy of the Slovak Republic. According to the CEDEFOP, more than half of total job openings till 2023 will require a high level of qualification, including digital skills. Sostero and Tolan (2022) prepared a technical digital skills report, where the authors confirmed that high-skills occupations are highly affected by the AI skills demand. Hence, following a study, using AI solutions in businesses can positively influence digital skills development. At the same time, the authors are alerting to deeply reconnoitre the digital level of employees and their occupational placement within the enterprise. The following remarkable results demonstrated Germany’s relatively high demand (11.7%) for „Creating artistic, visual or instructive materials“ skills compared to other involved countries. One of the primary sector in Germany (after manufacturing) are wholesale and retail trade. Hence, the creative abilities of employees may positively influence the development of this sector in the future and entice new consumers. The Czech Republic demonstrated the lowest proportional share regarding „Programming computer systems“ skills even though the highest demand for digital data analyzing skills was identified in all researched countries. According to CEDEFOP, medium-qualified employees will be required for the majority in the nearest future in Czechia.
Analyzed secondary data and studies demonstrate a wide area for utilizing selected contemporary trends for developing demanded employee skills. The author Adhikari conducted research in 2020, aiming to identify the dependency between the utilization of AI solutions, Gamification, and employee development. The study confirmed a positive dependence between variables. According to Adhikari (2020), AI use in a combination of intelligent education environment (Gamification) may support businesses to solve issues, develop employees’ creativity, and extent the business potential. Hence, other related and most demanded employee skills, such as „Solving problems“, „Communication, collaboration, and creativity“ can be developed by utilizing AI solutions with a combination of the involved intelligent education environment.
The skills mentioned in Table 3 bring a fresh energy to the world of sales operations. Abilities like „Accessing and analyzing digital skills“ and „Using digital tools“ fit seamlessly into sales and marketing, making a big impact. In the sales context, these abilities become even more important. Salespeople who are good at handling digital data can easily adjust their approaches, figure out current market trends, and predict what customers might like. This skill helps them have conversations with clients that really understand their needs, building trust (De Jong et al. 2014; Bowen et al. 2021).

4 Discussion

The framework introduced in this paper and the results based on an in-depth literature review enable to identify the potential utilization of contemporary trends in the business environment, specifically in continuous vocational training and described business areas. This paper explores the situation in selected central European markets to identify enterprise attitudes towards the CVT process and its importance within their businesses and following sales as well as marketing activities. This paper examines Eurostat’s CVTS and investigates data from 2015 and 2020. Based on the results and subsequent analysis, the author evaluates supplied CVT courses, their types, and related costs. Through this analysis, it was possible to compare related costs with initial investments in case of contemporary trends implementation. The examination of the cost-effective capabilities inherent in virtual reality (VR) and artificial intelligence (AI) enhanced training methods reveals a significant implication for business strategies. Businesses that implement these contemporary trends to optimize their employee development processes inadvertently enhance their ability to flexibly adjust their various processes within the organization (Uberwimmer et al. 2021; Teklehaimanot et al. 2017; Pomarici et al. 2017). This dynamic approach arises from a highly skilled workforce that smoothly incorporates market intelligence and comprehensive product familiarity, thereby enabling the creation of focused and well-informed marketing attitudes towards the surroundings. To illustrate, the newfound efficiency of VR-enabled training accelerates learning and fosters an immersive understanding of products, services, and customer needs among employees. This, in turn, translates into sales strategies that resonate deeply with consumers and drive engagement (Tollin et al. 2014). The alignment of CVT trends with sales strategies equips businesses with the flexibility to respond adeptly to shifting market dynamics and evolving customer demands. Moreover, the surge in self-directed learning, largely propelled by pandemic-induced constraints, carries profound implications for marketing strategies. Enterprises fostering a culture of continuous learning nurture employees who remain finely attuned to ever-evolving market trends. This intricate interplay between training, sales activities and marketing attitude necessitates a deeper calibration, where each element informs the other, orchestrating a harmonious symphony of business success.
The research demonstrated that the skills encompassed by „Using digital tools for collaboration, content creation, and problem solving“ and „Programming computer systems“ represent a valuable thread that intertwines both the sales and marketing domains. These skills can serve as a pivotal bridge, effectively bringing together two seemingly separate facets of a company and harnessing their combined strengths to enhance overall efficiency and productivity. Consider the scenario where a company invests in training its employees in these digital skills. These newly acquired proficiencies can be instrumental in the creation and dissemination of engaging marketing content. For instance, employees trained in content creation can produce compelling visuals, videos, and written materials that resonate with the target audience. By collaborating efficiently with the marketing team, they ensure that the company’s message is not only clear but also creatively presented. In the context of programming computer systems, these skills can be used to design and maintain a responsive and user-friendly company website. This digital presence, combined with marketing strategies, can effectively attract potential customers, creating a seamless and appealing online experience. Moreover, the ability to develop customized software solutions can significantly improve customer relationship management and sales tracking systems, contributing to enhanced sales performance. Tabiat’s research (2022) underscores the substantial impact of digital marketing activities on the sales performance of specific organizations. By equipping employees with the skills to navigate and utilize digital tools effectively, a company can capitalize on this interconnection. These skills can facilitate the implementation of data-driven marketing strategies, allowing for precise audience targeting, personalized customer interactions, and real-time performance analysis.
For a more tangible perspective, let’s consider the situation in Slovakia with regard to these competencies. In an economy closely intertwined with the automotive industry, digital tool proficiency transcends a passing trend – it stands as a pivotal factor in facilitating effective sales interactions and marketing strategy formations (Lopez-Vega and Moodysson 2023; Sihi 2018). Company´s sales and marketing teams well-versed in these proficiencies can steer discussions with technical precision, articulating intricate automotive solutions in ways that resonate with their clientele. Furthermore, Germany’s conspicuous demand for skills related to „Creating artistic, visual, or instructive materials“ introduces a unique dimension to the discourse on sales performance. Furthermore, the integration and development of these skills offer a plethora of opportunities for expanding the marketing sphere and its associated activities. Pourhosseini and Shahrokh (2013) support this notion through their research, which underscores that an effective marketing strategy significantly enhances a company’s sales performance. In light of the insights provided above, it becomes evident that the development of these skills will exert a positive impact on both areas, fostering growth and success. As wholesale and retail sectors thrive, personnel endowed with creative capabilities have the potential to invigorate these domains. The ability to craft compelling narratives with artistic finesse holds the power to sway prospective clients and infuse sales activities with dynamic vitality.
The findings presented in this research paper are consistent with other research that underscores the positive impact of employee training on overall sales performance as well. Thomas (2021) identifies six primary areas where sales staff training exerts a positive influence, with the first three pillars intricately connected to the employees themselves. As per the author, training plays a pivotal role in fostering company culture, enhancing salesperson motivation and satisfaction in their daily work, and maximizing overall output. Moreover, staff training has a positive impact on the agility of enterprises, which demonstrates an organization’s ability to swiftly manage and adapt to unexpected changes. In a year characterized by rapid and unforeseen changes, it is evident that sales training contributes to greater agility. Salespeople capable of adapting to new selling situations become invaluable assets to their respective companies. Furthermore, another author, Vanthournout (2009), as well confirms the benefits of investing in training. The author’s estimation suggests that for every dollar a company invests in training, they receive approximately $4.53 in return, resulting in an impressive 353% return on investment (ROI). Additionally, the CSO Insights Sales Enablement Optimization Study conducted in 2017 further corroborated the increased effectiveness of training programs. Notably, effective training initiatives, particularly in areas such as onboarding, social selling, and sales methodology, resulted in significantly higher quota attainment, with double-digit improvements. Social selling, in particular, emerged as a standout, associated with an impressive increase of 33%. According to the findings from the report, the development of sales managers plays a pivotal role in enhancing performance metrics, including quota attainment, revenue attainment, and win rates. The data revealed that even relatively modest investments in employee development, such as little as $500, yielded a remarkable 46.1% improvement in win rates. A slightly larger investment of $5,000 resulted in an even more substantial gain, with a 51.4% increase in wins for the company (CSO Insights 2017).

5 Conclusion

In conclusion, this article has delved into the vital symbiotic relationship between employee training and the business performance. In an era where dynamic market conditions and evolving customer expectations define business landscapes, organizations that invest in the continuous development of their workforce emerge as the true trailblazers. Employee training is no longer just a reactive measure; it has evolved into a proactive strategy for driving sales excellence and marketing success. In summary, the methodology employed in this research involved literature review, secondary data analysis, and comparative study to provide meaningful insights into the relationship between employee training, sales performance, along with the potential of contemporary business trends as marketing. The findings presented here are corroborated by a wealth of research, emphasizing the positive impact of employee training on business performance. It is evident that training plays a pivotal role in creating a motivated workforce, enhancing company culture, and increasing overall output. The return on investment (ROI) for training initiatives speaks to its undeniable value. This research paper offers valuable insights that can be applied by a diverse audience. Business leaders and executives can gain strategic perspective regarding the importance of employee training in enhancing a company performance. Sales managers and teams can derive inspiration from the findings regarding skills directly impacting sales performance, while policy makers and educators can use this research, based on CVTS data, to adapt training programs to meet evolving business needs. Additionally, researchers in fields like human resources, sales, marketing and vocational training can use this article as a foundation for further studies, enriching the collective knowledge in these domains. Nevertheless, this paper acknowledges certain limitations, primarily rooted in its theoretical foundation and the analysis of secondary data. The outcomes presented herein pave the way for future in-depth exploration of the intricate interrelationships among critical facets within enterprises.

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Kľúčové slová/Key words

sales, training, development, employee, skills
prodej, školení, rozvoj, zaměstnanec, dovednosti

JEL klasifikácia/JEL Classification

M31, M53

Résumé

Maximalizace podnikatelského potenciálu: Symbiotický vztah mezi školením zaměstnanců a úspěšností podnikání
V dnešním podnikatelském prostředí se stále jasněji ukazuje vzájemný vztah mezi rozvojem zaměstnanců a jejich výkonností v jednotlivých podnicích. Tento výzkum zdůrazňuje klíčovou roli odborného vzdělávání a školení v evropských podnicích, zejména v kontextu jejich dopadu na výsledky prodeje a marketingového potenciálu. Prostřednictvím důkladné analýzy sekundárních dat z Continious Vocational Training Survey (CVTS) provedeného Eurostatem tato práce odhaluje vzájemné propojení mezi efektivními metodami rozvoje zaměstnanců a následným vlivem na výkonnost prodeje, a zároveň vzájemné propojení s marketingovými iniciativami. Výsledky ukazují, že podniky mohou výrazně zlepšit své prodejní strategie investicemi do programů na rozvoj svých zaměstnanců, kteří rozvíjejí dovednosti požadované v dnešním, rychle se měnícím tržním prostředí. Tato studie zdůrazňuje, že podniky, které strategicky spojují odborné vzdělávání se svými prodejními aktivitami, jsou lépe připraveny konkurovat na dynamickém podnikatelském poli. Tento článek představuje cenný zdroj pro vedení podniků, personální pracovníky, manažery prodeje, trénery a výzkumníky, kteří se snaží porozumět a využít vzájemný vztah mezi rozvojem zaměstnanců a úspěchem v podnikatelském prostředí.

Recenzované/Reviewed

30. June 2023 / 20. September 2023