Does Training Improve Employee Performance? The Mediating Role of Career Development in Manufacturing Sector

In the manufacturing industry, where precision, efficiency, and quality are paramount, employee performance is key to maintaining the competitiveness of the organization. Training and development (T&D) are important investments in human capital but their direct impact on employee performance over the long-term is not simple. This study is based on Contemporary Human Capital Theory and Career Development Theory as the guiding framework to explore the mediating influence of career development (CD) between T&D and employee performance (EP) in manufacturing industry of Selangor. Utilizing a stratified random sampling design, usable responses were obtained from n = 102 manufacturing staff and supervisors (51% response rate). Partial Least Square Structural Equation Modeling (PLS-SEM) using the SmartPLS 4 software was used together with the inference test HTMT2, non-response bias test and non-response bias evaluation using latent marker variables. Results indicate that T&D exerts a strong positive influence on CD (β = 0.867, p < .001, f² = 1.204), while CD significantly enhances EP (β = 0.609, p < .001, f² = 0.241). The direct relationship between T&D and EP was modest (β = 0.297, p = .047, f² = 0.057). Bootstrapping analysis (with 5000 resampling) showed that there was a statistically significant indirect effect between variables (β = 0.528, BC 95% CI [0.380, 0.665], p < .001) and complementary partial mediation was indicated (Variance Accounted For (VAF) = 64.0%). The preliminary results of this research indicate that training results in maximum performance benefits when it is part of a managed career progression process.

Career development; Training; Employee performance; manufacturing firm

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