The return on investment of learning and development for business
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Oh no…we don’t have the time…training? Too expensive! Often heard excuses! Think carefully, there are both financial and other very important intangible reasons, which are explained below.
The return on investment (ROI) of Learning and Development (L&D) for businesses is the measurable benefit that a company gains from the money, time, and resources it invests in training its employees.
Consider a business that invests in a two-day training course for either its sales teams or service teams. The cost is £3,000 (tax deductible).
Through increased sales and/or better service levels in the following twelve months, increased revenues of £50k are delivered. You can do the math’s on that…it’s not unusual! Of course, there are many other reasons!
- Increased Productivity: Trained employees perform tasks faster and more accurately.
- Improved Employee Retention: Ongoing development increases job satisfaction and reduces turnover.
- Better Customer Satisfaction: Employees with strong soft and technical skills deliver better service…refer the earlier example!
- Innovation & Adaptability: Upskilled employees adapt better to market and technological changes.
- Stronger Leadership Development: Leadership development ensures continuity and strong succession planning.
Consider also…enhanced employee engagement & a stronger company culture. Improved compliance and reduced risk, an ever more important issue in today’s world.
When considering L&D interventions, align training programmes with business goals, and where possible, use data and analytics to track performance pre- and post-training. Regularly assess and adjust programmes based on feedback and results.
What is certain is that without developing your people, you will fall behind your competition and also have demotivated people…what are YOU waiting for!
We now accept the fact that learning is a lifelong process of keeping abreast of change. The most pressing task is to teach people how to learn.
Peter Drucker.
