According to Zippia, a job search firm, it was reported that 94% of employees would remain with a company that offers training and development opportunities. A Harvard Business Review (HBR) article stated that those organizations that invest in professional development experience 15% higher engagement and have 34% higher retention. Another HBR article shared more positive impacts when companies invest in developing people: These companies offer 92% better products and processes, are 52% more productive, get to market 56% faster, and are 17% more profitable!
Employees are seeing positive trends
More organizations are investing in their people. The World Economic Forum has data that suggests 39% of people’s core skills are expected to change by 2030.
Employers are more committed to providing soft skills development and job training because they recognize that more employees are looking for career development opportunities.
Leadership skills training is still one of the most popular topics that organizations invest in. Among the vast number of concepts being offered in leadership development, participants most often look for content on personal productivity, delegation, coaching, engagement, dealing with performance issues, managing stress and leading change.
Based on the current uncertainty in the global economy, another topic that’s growing in popularity is sales development. Business leaders are becoming more focused on outbound sales strategies than inbound sales enquiries. So, helping their sales teams use time more effectively is a priority that is increasing the investment in professional development.
Benefits of investing in employees
Businesses that prioritize employee learning & development enjoy higher employee engagement and better workplace culture. A culture that promotes growth and development fosters a positive work environment where people feel more valued and connected. Additionally, people who experience development opportunities report increased confidence and self-motivation. Because of higher retention and better profitability, these businesses pay significantly higher wages to their employees. However, most employees see career growth as more important than salary.
When employers prioritize professional development, people are more confident since they gain enhanced skills and knowledge, they experience increased collaboration, and continuous learning expands their comfort when going through change.
Higher engagement leads to enhanced innovation, higher job satisfaction, improved work-life balance, reduced absenteeism and better customer satisfaction. Better culture creates shared value and purpose, trust, psychological safety, and better team building.
There’s still room for improvement
Despite the increase in organizations committing to employee development, a recent study determined that 59% of employees report no formal workplace training. Those businesses see much higher attrition. Another study says that up to 40% of employees will leave in the first year if they don’t receive adequate training. High turnover companies struggle to achieve alignment and execution.
According to Gallup, the cost for companies to replace an employee is between 50% and 200% of the annual compensation for that employee depending on the role and that person’s seniority. So, when Zippia states that 94% of employees are likely to stay when their employer invests in their learning & development, investing in performance development is considerably less expensive and significantly more positive than replacing employees.
Key Takeaways
- Typically, employees rate investment in their development higher than compensation.
- Organizations that invest in people development perform better and retain people at a better rate.
- Performance development equates to higher individual productivity, better products and processes, get to market faster, and achieve higher profits.
- There is a correlation between training and higher engagement and better culture which extends to higher collaboration and better customer satisfaction.
- Investing in people development is less expensive than replacing people because of the high cost of overcoming attrition.
This article is brought to you by The Achievement Centre Canada, a franchise opportunity for entrepreneurs looking to build a successful business while making a meaningful impact through coaching, leadership and professional development.
