Find out what happens when learning is a priority for your organization.
Currently, big money is being spent on enterprise learning and development and there’s a good reason why – learning is your competitive advantage.
Organizations spent $1,296 per employee on learning in 2017. This represents a 1.7% increase from 2016, when the average spend per employee was $1,273.
The global corporate learning market is expected to register a CAGR of close to 11% during the period 2018-2022.
There’s no doubt executives see the importance of developing employees: almost 50% of executives believe the workforce isn’t receiving the training necessary for their businesses to succeed. They fear a loss of revenue and business to competitors, eroding customer satisfaction and a delay in product development. But what is also not always factored into the discussion about learning’s importance is the consequence of hiring rather than training employees.
The Cost of Replacing Employees is Significant
Each time a business replaces a salaried employee, the cost of replacing him/her can be equal to 9 months salary. So, if a manager earning $40,000 leaves your organization, it might cost up to $30,000 in recruitment and learning costs to replace that person.
It’s Not Just About Learning, But Learning The Right Skills
As we have discussed at length previously, businesses need to get better about building and developing existing employees, while reducing their reliance on the external labor market and associated recruitment costs.
In the age of increased automation and smart tools performing job-related tasks, what’s important now is soft skills. We’re talking about highly-transferable skills like leadership, communication and collaboration that are key to driving businesses forward and leveraging the opportunities presented by new technologies.
The 5 Most Important Areas of Focus for L&D for Executives
1. How to train for soft skills
2. Identifying trends to prevent future skill gaps
3. Understanding the impact of technology
4. Consistent global training
5. Deliver insights on internal skill gaps
What Happens When Learning is a Priority
According to research from IBM, an increase in skill levels linked to business value can result in $70,000 in annual savings and a 10% increase in productivity when teams are well trained.
Effective learning can also lead to greater employee motivation and satisfaction as employees feel valued and able to grow and develop throughout their careers. And importantly, learning and change are interlinked because it enables organizations to respond to changes and adapt to an increasingly competitive (and ever-changing) market.
How Do You Maximize the Return on Learning?
Now the “whys” of L&D are clear but what about best practices? Those big returns in engagement, productivity, efficiency, agility and innovation are attainable if development is done well. So, how do we ensure L&D is aligned to help achieve your organizational goals?
Download Docebo’s E-Learning Trends 2019 Report to find out.Learn how to develop L&D strategies that enhance employee engagement and retention!