Employee Learning Improves the Bottom Line – hr bartender
Estimated reading time: 4 minutes
I ran across a statistic recently that – while it’s a bit dated – speaks volumes about the value of employee training programs. According to a study from the Association for Talent Development (ATD), organizations that make investments into learning and development realize 218% higher income per employee and 24% higher profit margins. Those are pretty significant numbers. And even if they dropped a little over time, they’re still significant. Getting 100%+ return on investment (ROI) is noteworthy.
But this means that organizations need to do more than just implement one or two training programs. Training has to become part of the culture. Let me rephrase that … learning must become part of the culture.
I know sometimes the phrase “lifelong learning” gets pushback but there is truth in it. I’m reminded of the Peter Senge’s book “The Fifth Discipline” and how organizations can improve performance when they become learning organizations, meaning that they regularly learn from the successes and not-so-successful moments.
Employee Training Is an Essential Business Activity
Basic employee training – the kind of training that employees need to do their jobs – isn’t a luxury item. If you cut it from the budget, you’ll pay for it somewhere else. If employees don’t feel that the company supports them by providing the training and tools to do the job, they will go somewhere else. Basic employee training isn’t a carrot to dangle in front of someone and say, “I’ll tell you how to do your job if you promise to stay.”
Managers Should Encourage Employee Development
It can be very tempting for organizations to say that “we can’t afford employee development right now” or “if we develop people, they will take jobs with our competition”. Companies that don’t develop their employees will lose those employees because they’re not demonstrating support for an employee’s career. No one is going to stay with a company that says, “We like you. We just don’t want you to be marketable.”
Teach Employees How to Unlearn
Organizations often tell employees “Effective tomorrow, here’s the new procedure.” and not give anyone a chance to unlearn the old procedure. Not only does unlearning create buy-in for the change but it gives employees a chance to practice, which can improve their overall performance. And isn’t that what organizations want – good employee performance? Because good performance = good bottom-line.
Let Employees Learn by Breaking Things at Work
Speaking of learning new things, organizations and individuals need to find ways to be curious. There’s an old saying that the most dangerous six words in business are “We’ve always done it that way.” It’s true. If we want to continue delivering value, we need to be willing to “break things” occasionally.
Team Building and Team Development Are Not the Same Thing
There are advantages and disadvantages to working in teams. In my experience, the number one reason from employees that they either love or hate teamwork is the team dynamic. Set employees up for success by giving them the tools and training.
3 Steps for Employees to Identify Their Own Learning Needs
It makes good business sense for organizations to give employees the methodology and tools to manage their own learning during orientation or onboarding. Employees start their jobs with a clear understanding of their role and expectations with goal setting, one-on-one meetings, and performance management. Meanwhile, managers can spend their time coaching employees to use the process well.
As we move into the new year, there will be a lot of pressure to perform at a high level – both for organizations and for individuals. The best way to accomplish that is through learning. Organizations that make learning a part of their culture and the way they do things, will see positive results.
Image captured by Sharlyn Lauby at the Association for Talent Development Conference in Orlando, FL
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