Yes, Expenditure on 'On the Job training' is an important means of human capital formation in the economy.
Reasons:
(i) Updation of New skills: There are various skills which employees have never experienced. Training to employees at work place helps them to upgrade their skills. For e.g., use of smart boards and mobile technology has been very useful for teachers during Covid times.
(ii) Increase in Productivity: Up gradation of new skills helps to increase the efficiency or productivity of employees. They take comparatively less time to perform a task than before.
(iii) Increase in Expertise: When employees repeatedly perform a task using new skills, they become expert in that. It also increases the confidence of workers.
(iv) Economic Growth: Investment on 'on the job training' not only benefits the organisation and employees, it also proves beneficial for economic growth as majority of employees learn new skills and contribute to GDP Growth.