After Tony Parella bought Shared Technologies in 2004, he faced employees who worried they'd fallen behind in knowledge of the field as the telecommunications support company had tumbled into bankruptcy.

In one of his first moves, Mr. Parella expanded training and certification programs, an unusual decision with unexpected results: Not only was he able to retain staff in the long run, he also improved the bottom line.

BRANDON THIBODEAUX/Special Contributor

CEO Tony Parella (right) expanded training and certification programs at Shared Technologies. Rick Phillips, a senior installation technician, took advantage of the programs, which include bonuses for staying with the company.

The problem, he said, was that a typical class for an employee might cost $5,000. But the total cost, after adding travel, hotel and food, might top $8,000 – for one technician to attend one course. "And, inevitably once they got this newfound wisdom and certificate, they'd go to our operations team and ask for a $10 or $15 an hour raise. Or, they'd go across the street to another job."

Shared Technologies, based in Coppell, provides data systems and telephone system integration for businesses. The company was named to Fortune magazine's 2008 list of the "100 Best Companies to Work for."

Throughout technology fields, many companies such as Shared Technologies face similar challenges. Keeping qualified employees often depends on a mix of compensation, job satisfaction and career advancement, said Shawn Patterson, branch director in Dallas for the MDI Group, which works with companies to identify and place IT and other staffers, in both full-time and contract jobs.

Employee retention depends on several components, including an individual's relationship with managers and the potential for success on the job, Mr. Patterson said.

"Some companies are going to be better than others on training and developing their employees' technical abilities," he said. "I've spoken to quite a few people out there who are staying with their company because of additional training."

Companies face risks, though, if they assume that helping employees gain skills will automatically result in greater loyalty.

"If the only reason a person is staying with a company is training, they're usually just staying to get that training and then to move somewhere else," Mr. Patterson said. "Training is an important part in developing good people, but it goes back to whether or not they're content with what they're doing and satisfied it will make them successful."

Shared Technologies, which employs 1,550 people (compared with 524 in 2004), chose to emphasize training through its Technical Advancement Program, which not only improved individual skills but also helped establish the company's overall technical capability.

"It seems as soon as companies start to feel pressure, the first thing they cut is the training budget," Mr. Parella said. "I think you've got to be very mindful, in a business like ours, before you do that."

His company built an online portal available to technicians, a system designed to establish a benchmark of individual skills, and a personalized career development path.

"My people now feel they have a logical career path and they can evolve as the technology evolves," Mr. Parella said.

Shared Technologies went to Global Knowledge, which runs certification classes, and negotiated a bulk deal for training that lowered the per-class price from $5,000 to $1,500 for each employee.

The company also approached client companies such as Nortel, which provided money for marketing and trade shows, to shift money into training.

With the career development system in place, the final piece focused on retention. Mr. Parella wanted to remove the incentive for employees with new skills to seek new jobs.

So, everyone achieving a certification receives an immediate bonus of $750 to $1,000. Those who stay with the company for a year after certification receive another bonus, up to $5,000.

"It's a small investment when you think of what it's done for our company," he said. "Your customers are happy because they have a technician familiar with their configuration and their needs. It sprinkles across all of the major drivers of the business."

In the first year out of bankruptcy, the company reported $119 million in revenue, Mr. Parella said. Last year, the company had $325 million in revenue.

"Without the investment in our people, we would never have been able to deploy the technology that we do today, and that's been the foundation for our growth," he said.

Also, Mr. Parella said the company has high client retention. Shared Technologies has a half-percent customer "churn," or turnover, in an industry where 2 percent or less is considered very good, he said.

Company divisions such as project management, engineering and technicians qualify for the training programs. Every employee, however, can receive $5,000 for education reimbursement annually.

"Now, our training budget is about $4 million, or roughly 4 percent of revenue," Mr. Parella said.

"It's a small investment if you think about what it's done for our company," he said.