According to a publication by elearningindustry.com, an estimated 25% of employees leave their job because they don’t have a full understanding of how to complete the work they’ve been assigned and aren’t provided with any kind of on-the-job training. Flip to the other side of the coin, and those organizations that do offer training and development see an increase of 26% more revenue per employee.
Now, imagine that kind of increase across every area of your business model. A 26% increase in revenue per employee, per location, per year, multiplied by every line of business in the organization.
It adds up.
Until recent years, few organizations have really understood the impact that training and development has on an organization’s bottom line. Traditionally, initiatives to increase profitability relied on strenuous additions of more demanding sales quotas, or harsh cuts to peripheral line items. Far too many companies focus all of their attention on selling more product units, without considering the potential growth opportunity with their existing workforce.
The American Society of Training And Development (now the Association for Talent Development) released this quote in their annual State of the Industry Report:
“Organizations are linking learning to performance and the bottom line, and they understand the relationship between creating a skilled workforce and achieving enterprise-wide success. Employee learning and development is taking center stage as business leaders increasingly understand that a highly skilled, knowledgeable workforce is critical to achieving growth and success.”
The ironic thing is, in times of economic scarcity, many companies are quick to draw back from employee development – disinvesting in training in an effort to maintain profit goals. This is a short-sighted approach because ultimately the failure to invest in employees translates to decreases in profitability.
Chances are, if you’re reading this, you’re likely no stranger to the benefits of investing in training and developing your people. Download our eBook to take a look at the many types of training that are available to your organization, and discover how to wade through the potential delivery options to find a solution that’s best for your organization.