Learning strategy can impact the metrics that keep you up at night
- Adam Spacht
- May 26, 2024
- 2 min read
Why should we focus on learning?
Well, to sum it all up.
The simple answer is money.
It's as simple as that. Money.
It does get a little bit more layered than that.
Evidence shows that ineffective training cost companies $13,500,000 per thousand employees.
Magnify that across the working population of really any country and you get a mind bogglingly huge amount of money just simply evaporating off P&L sheets.
Put it in a value language, wanting to improve your inputs to get better outputs, think about the creativity, the innovation, the new ideas that are being lost because of a lack of good quality training.
The reality is workers are crying out for effective training.
60% of workers indicate effective training helps them perform at a higher level.
Millennials are reporting at rates as much as 70% that effective training is a signpost of solid company culture.
If we look at retention rates, organizations with good ongoing development, good solid training programs report 30 to 50% higher retention rates.
So you'd think with stats like that most companies would put training as something to support the business going forward.
Sadly, no.
Forbes recently had an article that 40% of Employees indicated that they were preparing to leave an organization if the company didn't keep up with the training and development needs of those individuals.
60% of employees have reported not receiving any form of training in their workplace environment.
So no training is bad, got it. But many companies offer training that lives in the Human Resources Department no?
Yes, but there training often becomes a compliance based approach.
Fill out your paperwork, watch this third party video about DEI or Safety in the workplace, something like that.
Boring, ineffective and more orientation than actual training.
When it's just that tick the box, let's just get it done to get it done, it's not being utilized to move the organization forward.
It's really being utilized from a corporate risk management standpoint, which is sad.
So.....how does learning lead to money?
Firms that have a comprehensive L&D program have a 16% increase in customer satisfaction.
They report a 24% higher profit margin at the end of the year.
Companies with engaged employees are 17% more productive than those without.
So what does this all mean?
There are certain big picture topics are universal to leaders across the globe.
Profit, revenue, productivity, talent retention and net promoter score, etc.
Many firms offer no training opportunities at all.
Those that do often relegate training to boring and ineffective approaches.
Aligning effective training, in a comprehensive strategy to address key drivers of success, can put more dollars in the till and then keep more of those dollars on the bottom line.
Think about learning as a partner in the process from a strategic vision standpoint, training is then highlighted a pathway to strategic outcomes.
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