Show me how to grow fast in turbulent times: Balancing human resource practices between employee training and educational attainment

Abstract This paper explores whether there is a balance or a trade‐off with respect to human resource (HR) practices that high‐growth firms (HGFs) are likely to use in adverse economic conditions. Drawing on the human capital theory, two major HR practices related to the educational level of employees and the use of formal employee training are examined as critical components of a cost‐efficient strategy, pursued by small and large HGFs in times of crisis. To this end, the empirical analysis uses data derived from an extensive two‐wave survey on 1500 Greek manufacturing and services firms at the peak of the Greek economic crisis. The results reveal two different patterns in the HR management: HGFs of larger size tend to employ persons with lower educational attainment and subsequently invest in formal training to increase their skills. On the contrary, smaller HGFs prefer to hire employees with specialized knowledge acquired from advanced formal education and avoid the provision of subsequent training. The study contributes to the literature by highlighting the way large and small HGFs manage the human capital embedded in their employees to outperform in crisis‐hit economies.