Ultimate Performance: Measuring Human Resources at Work

General Versus Job Specific Development

Human capital economists divide development into two categories: general and job specific. General knowledge development is typified by broad-based training programs, addressing general management skills (such as Coaching for Success or Keys to Negotiation), and it might include tuition reimbursement for completion of an undergraduate degree. While these types of programs are expected to increase job performance over time, most are frequently offered on a general enrollment basis without a short-term expectation of return on investment.

On the other hand, job-specific knowledge development can include courses or training that address subjects such as Essential Aspects of Managed Care, or Loan Eligibility Determination. Examples of job specific development include instruction in how to use claims processing software or how to operate a forklift.

Because general knowledge and skill development do not produce immediate, visible returns on investment, as job specific development does, there is often less financial support for it. On the other hand, job specific development is often supported easily, but specific and unambiguous returns are expected, usually in the short term. Nevertheless, progressive companies have learned that general development often pays off over time, particularly for key employees.