Train to Retain: Investing in Employee Development and Well-Being - Professor Merih Sevilir

Event Date: 16 April 2026

Speaker: Professor Merih Sevilir, European School of Management and Technology Berlin

Venue: Strathclyde Business School, Cathedral Wing, CW406a 

Time: 2pm

Abstract:

This paper examines how firms adapt their employee development and well-being programmes in response to heightened competition for human capital. Exploiting staggered relaxations of non-compete agreement enforceability across US states, we show that firms significantly increase their employee development programmes when employee mobility rises, with the effect stronger among knowledge-intensive firms, firms with fewer employees, and firms facing greater product market competition. These strategic investments improve retention, attract talent, and enhance innovation and operating performance. While firms also increase employee support programmes as well as workplace health and safety, these increases show little variation across firm types. Overall, our findings highlight the strategic value of investing in employees as a powerful lever for firm growth and competitiveness.

Published: 9 April 2026