There’s a common debate in the business world regarding training. Many leaders fear that, after they spend money advancing the skills of their workforce, the employees will leave, bringing their enhanced skill sets to the competition.
However, if you fail to offer robust learning options, you are also taking a risk. Your staff won’t be as skilled as they could be, so you are missing out on the improvements that you could facilitate through training. Plus, if your competition has a strong process in place, they are securing an opportunity to get ahead.
Ultimately, companies can’t afford to forgo training if they want to remain competitive. However, it isn’t always easy to see the ROI from the investment. If you want to know how investing in your company’s learning process can improve project ROIs, here’s what you need to know.
Understanding the ROI of Training
Multiple studies have been done to assess the ROI of training. One showed that, for every dollar a company invests in training, they receive a $4.35 value in return. That makes the ROI of the investment 353 percent.
Another showed that taking advantage of e-learning tools can boost productivity by about 50 percent. For every dollar spent, the organization receives approximately $30 of productivity value.
Often, the return is based on the enhanced skill sets and knowledge bases of employees. When training allows a worker to be more efficient, handle duties that were previously outside of their capabilities, or use a technology that brings the company additional value, you are experiencing a financial gain.
Ultimately, training enhances productivity. Your teams can do more or accomplish their current tasks in less time. This allows your bottom line to improve thanks to your training investment, even if the impact seems somewhat indirect.
Recruitment and Retention Benefits
Did you know that an employee may choose to leave your company because you aren’t offering opportunities for them to develop professionally? It’s true. If you don’t invest in training, your best and brightest may look for opportunities elsewhere, allowing them to secure a job with a business that will help them advance.
Similarly, many professionals seek out vacancies at companies that are known for providing chances to learn and grow in their roles. By offering training, you may be able to recruit with greater ease, making it easier to secure top talent and shortening your time-to-hire.
By improving recruitment and retention, you are also helping your bottom line. You can invest less money in hiring because your current staff is staying longer and recruiting isn’t as challenging, creating a financial benefit.
Are You Ready to Take Your Learning Process to the Next Level?
If you are reevaluating your training program and need highly skilled L&D professionals to help you navigate the process, the experienced team at Clarity Consultants can help. Clarity Consultants has nearly a quarter-century of experience in the L&D field, providing you with access to knowledgeable professionals who can help make your goals a reality. Contact us to discover more about what we have to offer and see how our L&D expertise can benefit you.