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With employer-paid training, workers have the

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With employer-paid training, workers have the potential to become more productive not only in their present employment but also in any number of jobs with different employers. To increase the productivity of their workforce, many firms are planning to maintain or even increase their investments in worker training. But some training experts object that if a trained worker is hired away by another firm, the employer that paid for the training has merely subsidized a competitor. They note that such hiring has been on the rise in recent years.

Which of the following would, if true, contribute most to defeating the training experts’ objection to the firms’ strategy?

A. Firms that promise opportunities for advancement to their employees get, on average, somewhat larger numbers of job applications from untrained workers than do firms that make no such promise.
B. In many industries, employees who take continuing-education courses are more competitive in the job market.
C. More and more educational and training institutions are offering reduced tuition fees to firms that subsidize worker training.
D. Research shows that workers whose training is wholly or partially subsidized by their employer tend to get at least as much training as do workers who pay for all their own training.
E. For most firms that invest in training their employees, the value added by that investment in employees who stay exceeds the value lost through other employees’ leaving to work for other companies

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Practice Question
Critical Reasoning
Question No.: 546
[Reveal] Spoiler: OA

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Re: With employer-paid training, workers have the [#permalink]

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Here is the simplified argument --

if a trained worker is hired away by another firm, the employer that paid for the training has merely subsidized a competitor --> training experts object to increasing investments in worker training.

Let us take a look at the answer options --

Option A - Incorrect

If they get larger number of untrained workers, then more money needs to be invested in training them (and very likely these people after receiving the training move on to competitor companies). This strengthens the training experts' objection.

Option B - Incorrect

more competitive => more likely to switch to other companies. this also strengthens the argument.

Option C - Incorrect

But still the investment that the firms made is lost if employees jump jobs.

Option D - Incorrect

If they get the same amount of training, companies could ask the employees to fund their own training. No need to invest in worker training.

Option E - Correct answer

this means that even if some employees quit, the investment generates some positive value. this directly attacks the training experts' conclusion that investment in worker training is pointless.
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With employer-paid training, workers have the [#permalink]

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New post 28 Jun 2017, 18:39
Hi GMATNinja
Conclusion: A competitor company would have to pay less for training an employee
if he is already trained by previous company for productivity.
I was not able to come up will with correct structure and eventually ended up marking C as OA thinking : if other institutes are offering less fees to employees to train them hence it can disprove that previous employer had to bear training expenses.
Can you help with my understanding?
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Last edited by adkikani on 29 Jun 2017, 16:59, edited 1 time in total.

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Re: With employer-paid training, workers have the [#permalink]

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New post 29 Jun 2017, 10:12
Imo E
even if some employees leave the company which paid for their training , bulk of the employees still remain .
So value added is greater than the value lost , hence E is the answer.
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Re: With employer-paid training, workers have the [#permalink]

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New post 29 Jun 2017, 19:05
straight E..

researchers say the employer aid training is pointless, but E says, even if workers switch jobs, they will have positive values gained by the previous employer, thus training is not pointless.
rest all options are out of scope.
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AbdurRakib wrote:
With employer-paid training, workers have the potential to become more productive not only in their present employment but also in any number of jobs with different employers. To increase the productivity of their workforce, many firms are planning to maintain or even increase their investments in worker training. But some training experts object that if a trained worker is hired away by another firm, the employer that paid for the training has merely subsidized a competitor. They note that such hiring has been on the rise in recent years.

Which of the following would, if true, contribute most to defeating the training experts’ objection to the firms’ strategy?

A. Firms that promise opportunities for advancement to their employees get, on average, somewhat larger numbers of job applications from untrained workers than do firms that make no such promise.
B. In many industries, employees who take continuing-education courses are more competitive in the job market.
C. More and more educational and training institutions are offering reduced tuition fees to firms that subsidize worker training.
D. Research shows that workers whose training is wholly or partially subsidized by their employer tend to get at least as much training as do workers who pay for all their own training.
E. For most firms that invest in training their employees, the value added by that investment in employees who stay exceeds the value lost through other employees’ leaving to work for other companies

The Official Guide for GMAT Review 2018

Practice Question
Critical Reasoning
Question No.: 546


Responding to a pm:

- With employer-paid training, workers become more productive.
- To increase the productivity, many firms are planning to maintain or even increase their investments in worker training.
- But some training experts object that if a trained worker is hired away by another firm, the employer that paid for the training has merely subsidized a competitor.
- They note that such hiring has been on the rise in recent years.

What is the "training experts’ objection to the firms’ strategy"?
That workers leave after training and in effect, a competitor gets a productive worker without paying for it. So it may not be a good idea to pay for worker training.

What will defeat the objection?

If overall, the company sees a net positive return i.e. paying for worker training is worth it for the company then the objection is defeated. That is what (E) says:
- For most firms that invest in training their employees, the value added by that investment in employees who stay exceeds the value lost through other employees’ leaving to work for other companies

The net value that the company gets is positive. The employees who stay more than make up for the value lost. So it makes sense for the company to invest in worker training.
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Re: With employer-paid training, workers have the [#permalink]

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New post 02 Jul 2017, 11:18
Well CRs are very confusing for me to wrap my head around -- not sure when to take an extra leap of judgement and when to stick to the exact argument.

Here is the argument:
But some training experts object that if a trained worker is hired away by another firm, the employer that paid for the training has merely subsidized a competitor. They note that such hiring has been on the rise in recent years.

Looking strictly at the argument, it does not talk about "net value" from the investment in workers' training. It talks about "subsidizing" another competitor.
Now, even if E is to be true, the argument above is still valid -- you are potentially still subsidizing your competitors.

I guess, my question is, how do we extrapolate that the emphasis of the training experts argument is about "find net positive value of the investment" and not much about as competitive strategy (incentivizing competitors by supplying them with trained employees)?

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sevenplusplus wrote:
Well CRs are very confusing for me to wrap my head around -- not sure when to take an extra leap of judgement and when to stick to the exact argument.

Here is the argument:
But some training experts object that if a trained worker is hired away by another firm, the employer that paid for the training has merely subsidized a competitor. They note that such hiring has been on the rise in recent years.

Looking strictly at the argument, it does not talk about "net value" from the investment in workers' training. It talks about "subsidizing" another competitor.
Now, even if E is to be true, the argument above is still valid -- you are potentially still subsidizing your competitors.

I guess, my question is, how do we extrapolate that the emphasis of the training experts argument is about "find net positive value of the investment" and not much about as competitive strategy (incentivizing competitors by supplying them with trained employees)?



You have to look at the implication of what is said.

"But some training experts object that if a trained worker is hired away by another firm, the employer that paid for the training has merely subsidized a competitor."

It implies loss of value to the trainer. That the employer who paid for training got no value. His money got used to just subsidise a competitor. That he himself did not get value for his money. The argument is written this way only to point out the irony. We don't really have much to do with the competitor angle.
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Re: With employer-paid training, workers have the [#permalink]

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New post 03 Jul 2017, 10:37
Is this question from a new 18 guide?
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Re: With employer-paid training, workers have the [#permalink]

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New post 22 Sep 2017, 01:39
Premise: With employer-paid training, workers have the potential to become more productive not only in their present employment but also in any number of jobs with different employers.

Conclusion: To increase the productivity of their workforce, many firms are planning to maintain or even increase their investments in worker training.

Counter Premise: But some training experts object that if a trained worker is hired away by another firm, the employer that paid for the training has merely subsidized a competitor. They note that such hiring has been on the rise in recent years.

We need to weaken the argument - So, we need to find a reason which would tell us why we should continue the training process, even if some employees leave the company.


Which of the following would, if true, contribute most to defeating the training experts’ objection to the firms’ strategy?

A. Firms that promise opportunities for advancement to their employees get, on average, somewhat larger numbers of job applications from untrained workers than do firms that make no such promise.[Out of Scope - We are not concerned with advancement to employees factor. We need to look for a reason to continue the training process. ]

B. In many industries, employees who take continuing-education courses are more competitive in the job market. [Whether they are competitive in the market or not is not our concern, because this cannot be the reason to continue training people.]

C. More and more educational and training institutions are offering reduced tuition fees to firms that subsidize worker training.[Out of context: Even if they are offering a discount, that does not mean that employees after getting trained won't leave the job. And since we are paying money to train, if the employee leaves, we are at a loss.]

D. Research shows that workers whose training is wholly or partially subsidized by their employer tend to get at least as much training as do workers who pay for all their own training. [This statement compares the amount of training, which is again not our concern, as we want to know what happens after training them?]

E. For most firms that invest in training their employees, the value added by that investment in employees who stay exceeds the value lost through other employees’ leaving to work for other companies[This gives us a reason why we should continue training. So, even if some employees leave, we know that those who are still working would add value which would compensate for those who have left. Thus, that should be a good enough reason to continue training.]

Correct Answer - E.
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Re: With employer-paid training, workers have the [#permalink]

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New post 03 Oct 2017, 09:25
+E,.

Trained employers who stay give more value than the one's who leave the organization.

Even if few employee leave,its still more valuable.
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Re: With employer-paid training, workers have the   [#permalink] 03 Oct 2017, 09:25
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