Almost every industry is facing — or will soon face — a blend of human capital challenges: attracting skilled talent to their industry, retaining and engaging top performers, and ensuring that their people have the skills required to make the business successful. Challenges also exist in preparing the next generation of leaders to take on new responsibilities. In order to address these challenges, businesses need to make employee training and development top priorities.
An investment in training and development has an impressive ROI. The Construction Industry Institute found a return of $1.30 to $3 for every dollar spent on craft training; the U.S. Department of Labor found that ongoing training raises productivity by 16 percent; and Caterpillar University saves an average of $87 per person for every e-learning course taken. These returns are much higher when you consider training as an employee retention tool. Losing talent is very expensive, with the cost of replacement and training as high as 2.5 times a departed worker’s salary. “Learning and development opportunities” is consistently listed among the top reasons high performers stay with their companies.
Implementing a learning and development infrastructure — including resources, technology and processes — also empowers your organization to quickly implement change initiatives. Your ability to respond to the market and adapt quickly is the essence of competitive advantage. When you need to roll out new procedures, strategies, technology or respond to new regulations, it is crucial to be able to disseminate necessary training to employees to ensure that the change sticks.
To attract and retain top talent, reduce risk, and drive greater results, businesses need to make employee training and development priorities. They will benefit, and industries will be better prepared for future chal-lenges.
—The author, Jake White, is a Certified Professional in Learning and Performance at Torch LMS.