In order for employees to be successful in their jobs, they must undergo some kind of professional development. This could be a simple course on certification or a degree.
The majority of companies understand the importance that employee development has in the workplace. But implementing an effective employee development strategy is a priority.
The performance of your employees has a direct impact on your business’s retention, growth and overall success. Here are four statistics that show how important employee development is to your team.
- According to a survey conducted by the Conference Board , 96% of respondents believed that they should continuously develop their skills in their workplace.
- Bright Horizons report found 60% of employees wanted additional guidance about continuing education in their career.
- According to the Guild’s American Worker Survey , 41% of employees quit due to lack of opportunities for career advancement.
- According to a McKinsey study , 70% of 2100 frontline workers applied for career advancement opportunities in order to progress.
Are these benefits only for the employees? It’s not true. When it comes to higher education, investing in your employees’ training and development will yield better results for the business. Here’s why.
Increased engagement and productivity:
Higher educated employees tend to be more productive, efficient, and innovative. They can handle more complex tasks because they have a greater knowledge base and skill-set. According to Gartner this can lead to an increase of 20% in engagement and 10% in productivity.
Improved Retention and Reduced Turnover:
Investing in the further education of your employees shows that you value their professional and personal growth. This creates a sense loyalty and commitment to the team. Companies that pay for the higher education of their employees tend to have lower staff turnover rates. The Graduate Management Admission Council reports that 62% employers who offer tuition assistance programs see higher retention rates. This means they spend less money and time on hiring.
Improved Company Image:
According to a recent survey, 88% of Gen Z employees are more likely than not to recommend their employers for their educational benefits. This means that companies who invest in employee training are more likely to attract talent. A study on education reimbursement shows a 129% ROI, which means that every dollar invested generates $1.29.
A Cost-Saving Method
Training employees can save companies money over time. This is because the cost of replacing an employee could be up to two times their salary. L&D investments are a more cost-effective option. Retraining current employees can help you save money compared to laying people off and hiring new ones. Developing skills within the company can also be more cost effective than hiring employees with high-demand skills.
Improved Performance and Adaptability
Your team must be able adapt quickly to the constantly changing workplace due to changes in technology, market trends and other factors. Investing in education gives employees the tools and knowledge they need to remain competitive and ahead of their competition.
Increases revenue
Employee training has a direct impact on the revenue of a company, and not just in terms of cost savings. It can develop new capabilities, such as data analytics, which leads to increased revenue and growth. The role of further education in digital transformation is also crucial, as it ensures success in completing digitally enabled work tasks. It also improves output and collaboration.
Achieve a Higher Overall Success
A team that is well-trained can handle more complex tasks with fewer errors, which reflects positively on the overall performance of your company. Take project managers, for example. Research.com offers online master’s degree programs in finance that are cost-effective and will allow project managers to develop accurate budgets for projects, control costs, and monitor expenses.
Core strategies to maximize the ROI on employee training ROI
It’s not enough to select a degree program for your employees. You need to provide them with opportunities for advanced education. Here’s how to do both.
Align L&D goals with business objectives
It is important to ensure that your training initiatives are aligned with the strategic goals and objectives of your organization. It is important to align employee training initiatives with the primary business goals. This will help drive business success.
According to research, employers who align their employee training with company strategic objectives achieve 24% more productivity than those who do not. This ensures the training is an investment that will lead to improved employee performance, productivity and competitiveness on the market.
Customizable Training Opportunities
You must design education programs that are tailored to the specific needs, skills, and preferences of your employees. You can begin by conducting an assessment that will help you to identify and analyze the employee’s skill gaps, their learning styles and passions.
You can improve relevance, engagement and effectiveness by strategically personalizing training content, delivery methods, and resources. The personalized learning experience increases the team’s retention of knowledge, interest and application, while also giving them real-world skills. This maximizes your ROI.
Use innovative, technology-based learning methods
You can invest in learning management systems (LMS), e-learning platforms, online degrees, virtual reality (VR), and augmented reality (AR) to name a few digital tools. You can invest in digital tools such as learning management systems (LMS), online degrees, virtual and augmented realities (AR ).
Your company can provide interactive, engaging and on-demand learning experiences with the help of technology. Gamification, microlearning and mobile learning are innovative methods that benefit the learner and increase their capacity.
Measure the effectiveness of
To ensure that employee training programs remain profitable and effective over the long term, companies must measure the impact on the investment. Key performance indicators (KPIs) such as employee satisfaction scores, productivity metrics and training completion rates can be used to measure the effectiveness of different training modules. You can determine if the L&D investments are worth it by establishing specific evaluation methods and metrics.
Final Thoughts
Businesses spend millions of dollars on L&D every year, but many do not realize the benefits to their company. The opportunity to develop your employees through advanced degrees is important, but so is the continued learning of your workforce. This will lead to innovation and success.
