The ROI on employer-sponsored learning is quite impressive.
The most competitive organizations in the world are discovering that investing in education and training can lead to growth and innovation tomorrow.
How do you measure the value of an education? Societies throughout history placed a huge value on learning. From the tutors assigned to the children of nobility in ancient times to the innovative universities in America’s modern cities, humans have collectively valued education.
Today’s business world also recognizes the value of education. More and more top-tier companies are learning that the future belongs to those who love to learn. Because of this, many organizations decided to move toward policies that promote and sponsor adult learning.
These learning programs encompass everything from certifications to advanced degrees. Business leaders from Silicon Valley to Madison Avenue are discovering that the return on investment when it comes to education is well worth their upfront costs.
Here are the top reasons why every CEO, manager and business leader should look fearlessly at ROI when it comes to workplace learning:
The Turnover Factor
Every human resources manager knows that turnover is one of the most frustrating aspects of running an organization. Turnover is also one of the costliest factors to deal with when leading a staff.
The cost to search for and train a new employee eats away at an organization’s bottom line. In addition, the loss of productivity that occurs during the time when a vacant position is waiting to be filled can be astounding. It is also important to note that when an employee leaves, they take the knowledge and connections with them.
Why is learning relevant in a discussion about decreasing employee turnover? Education and training are powerful tools in retaining a valuable workforce. You can actually create the team you want instead of constantly looking outside of your organization for particular skills.
When you sponsor learning for your employees, you can look internally when it is time to fill roles in your company. It is much easier and cost-effective to groom an employee for a management role if he or she is already integrated into the company and familiar with internal policies. In addition, employees are far more likely to see your company as a lifelong place of employment if workplace learning is sponsored.
Younger employees will be more likely to stay in their roles if they know they can balance pursuing additional degrees and training with their job roles. Older employees will feel like they can learn new skills that will build on the years of experience they already have to draw knowledge from. Sponsoring education and training could be the antidote to high turnover rates in all industries.
Employee-sponsored learning is an extremely desirable perk. In fact, it may be the factor that causes qualified, in-demand professionals to want to work at your organization. This can be used as a recruitment tool when hiring both recent graduates and seasoned professionals. A potential employee deciding between job offers will certainly take the possibility of sponsored training and education into consideration when weighing the pros and cons.
The quality of your staff plays a big role in how the world perceives your organization. You want investors and potential business partners to know that your company has a competent, trained staff. One of the most important ways to demonstrate competence is to show you have a well educated staff. The number of employees with degrees, advanced certificates and high-level or specific training will reflect positively on your organization. (This information can be used in annual reports, press releases, investor memos and job-recruitment literature.)
Beth Doyle is Interim VP, LearningCounts, for CAEL.