Abstract:

The issue of internal training of personnel has recently become increasingly important, since the quality of human capital is one of the most important factors of competitiveness. Internal training allows the employee to acquire specific human capital and develop competencies to the required level.

The study examines the reasons for the selection of specific internal training programs and related with it aspects of performance and risk insurance. The empirical base of the research is the authors' survey of employees (203 people) and employers (63 people). The sample included industrial enterprises conducting training and workers trained during the year preceding the survey.

The following hypotheses are tested in this study:
- Employers' decisions on employee training are made taking into account the risk of subsequent dismissal of the employee. The probability of concluding a contract that obligates an employee to work a certain period after completion of training, or to return the funds spent on training in case of early dismissal, reduces as the specificity of the formed human capital and the length of service in the organization increases.
- Motivation of employees participating in internal training is differentiated by type of programs and work experience. The motives of education connected with the preservation of the workplace are more common for workers participating in specific training programs and having considerable work experience in the organization. On the contrary, the motivation for improving competitiveness in the labor market will be more common among workers enrolled in general programs.

There were used the following research methods: descriptive statistics, factor analysis, regression analysis.

According to the results of the study, the following conclusions were obtained:
1. Russian employers' investments in training are aimed at overcoming the lack of competencies previously recorded in the studies of the Russian labor market.
2. The employer's investment in general human capital increases the risk of dismissal. The policy of conclusion of student contracts partially allows to insure risks of the employer, but in general the share of the workers focused on increase of own competitiveness in the labor market by results of training is a little higher, than the existing coverage of student contracts.
3. Motivation of employees undergoing training varies depending on the degree of specificity of programs and work experience in the organization. Employees, who are enrolled in specific programs, as well as those with more than five years of work experience, are more focused on building an internal career. For employees enrolled in the general education programs there was revealed a relatively greater focus on the external labor market.

Keywords:

Internal training, education, human capital, Russian Federation.