The world is changing at a rate faster than ever before. A study at Oxford University predicts that 50% of existing jobs will fully transform within the next 20 years. Additionally, the average life of acquired skills is only five years. This means that with technological advances quickly making traditional methods obsolete, businesses must keep their workforce up-to-date in order to thrive.
To stay current, it is essential for companies to significantly invest in the learning and development (L&D) of their employees. In addition to being crucial to the health of the business, L&D supports employees’ careers and personal development. Therefore, organizations must include L&D benefits in their hiring packages when recruiting new employees. Here’s why:
One of the most important conditions businesses must have in order to succeed is an aligned community. Organizations in which employees are harmoniously moving toward their shared initiatives are significantly more successful than others. Although studies show dramatic increases in performance for businesses in which goals are aligned, only 7% of employees fully understand their business’ strategies. This means that it is up to L&D to educate employees in business initiatives and methods, and ensure that they are united in endeavors to achieve them. This employee-centric approach will increase businesses’ productivity and guarantee their success.
There is no denying that in order to have effective L&D programs, businesses need to make substantial financial commitments. However, it is important to recognize that employee training is not an expense; it is an investment. Studies have shown that with effective training programs, companies get their return on investment significantly quicker than others. An important reason for this is that the absence of these programs may cause employees to feel undervalued. This can lead to lack of motivation and poor performance, causing them to leave the organization. While some might argue that the solution is simply to hire someone else as a replacement, it is important to consider that it can cost up to 30% of an employee’s salary to train a new hire. This is excluding the time it takes to build healthy working relationships within the organization.
Employee Personal Growth
By immersing themselves in company strategies through their L&D program, accomplishments become tangible to employees. This goes beyond the positive feeling of goal attainment. It sparks personal growth in employees as it boosts their confidence, and motivates them to do more. In addition, more than 30% of the workforce are millennials. Studies have shown that when it comes to benefits, millennials prioritize working at an organization that offers effective L&D programs, rather than health benefits, flexible work times and vacation. This indicates the tremendous value that employees place on the personal growth that these programs bring.
We now know that L&D programs have the power to increase employee retention, but why does that matter? First, the cost of hiring employees is tremendous. From evaluating and onboarding, to training and familiarizing, there are countless expenditures that go into replacing employees. Equally important, there are performance costs that can be avoided through employee retention. Employees who have been in the organization are already familiar with business strategies, existing culture, pace of work and team goals. In a team-centric environment, it is integral to ensure that all members of the team are in sync. It is inevitable that existing employees also require training programs to stay up to date however, their immersion in the corporate culture makes these investments more efficient. These benefits incentivize organizations to retain their employees.
At CoreAxis, we recognize the tremendous benefits of simplifying recruitment and ensuring retention. By providing custom training packages and innovative learning solutions, we ensure that our clients have the right tools to reach their goals through L&D.