Can your company’s investment in employee training and development be an indicator of your market performance? A study by the Association for Training and Development (ATD) indicates that this is the case. According to their research, companies with comprehensive training programs enjoyed a 24% higher profit margin and 218% higher income per employee than companies with less focus on employee development.
Why do training programs make such a difference? Continuous career development increases engagement. A recent Dale Carnegie survey suggests companies with engaged employees outperform those without, by up to 202%.These programs can also help attract and retain top talent. Nearly 60% of millennials say that a state of the art training program is reason to accept a job. What’s more, PwC estimates that losing an employee within one year of hiring can cost companies up to three times that person's salary. When not given appropriate job training, 40% of employees will leave within that first year.
Business leaders have not been blind to these facts. In the U.S. alone, corporations spent over $161 billion on training in 2017. However, only about 10% of this training may actually be effective. That means that a staggering $145 billion per year is spent on ineffective training programs! Harvard professor Michael Beer calls this “the great training robbery.”
The challenge is that traditional training, like much of the business world, cannot keep up in a fast moving world. The average age of an S&P 500 company has dropped from 60 years in the 1950s to under 20 years today. The culprit? Technology. Skills now have a half-life of only 2.5 years and companies risk becoming obsolete if they don’t keep up. Despite this, in a survey of 200 Learning & Development leaders in global organizations, half revealed that their learning architectures were decades out-of-date.
This is where the value of digital learning for organizations becomes apparent. By harnessing the power of technology, it can offer many unique benefits. Digital learning is:
- Standardized: By allowing you to build a consistent body of knowledge, digital learning allows you to get your employees on the same page about vital information such as your organization’s goals, business practices, and culture.
- Systemic: A well-designed, customized digital learning module allows organizations to track learner progress, even if a large portion of the learning experience takes place outside of the module.
- Scalable: Whether you’re a startup with a team of ten or a growing international franchise, digital learning modules can adapt to your unique needs. They can be translated into different languages, expanded, modified, or updated with an ease that traditional programs can’t compete with.
- Practical: Digital learning is designed to help the learner achieve real results that they can apply immediately in their lives. It can also be personalized to the learner, allowing them to test out of lessons they already understand or explore topics of interest in greater depth.
- Engaging: One-third of employees agree that uninspiring content is a barrier to their learning. Digital learning uses technology to enhance the learning experience through stimulating multimedia formats that captivate audiences.
By now, it shouldn’t be a secret than an investment in your employees is an investment in your company’s future. However, ineffective training programs may be costing you $13.5 million yearly per 1,000 employees. If you’re one of the 62% of organizations that believe they are not meeting their employees’ training needs, or you want to know how to get the most out of your development programs, download our eBook below.