There are a number of studies that show a strong correlation between L&D and company profitability. According to the Association of Talent Development, companies that invest in L&D have a 24% higher profit margin than those that spend less on training, and those with comprehensive training programs also have a 218% higher income per employee.
Equally as important, employees who have access to learning programs and career development are more likely to stay with an organization. In fact, SHRM reports that 61% of respondents named lack of career development and advancement a top three cause of turnover, while 21% said it was the top reason for turnover.
In other words, L&D has the potential to become the “secret sauce” of any organization’s performance in the marketplace. But as they say, the proof is in the pudding. This means going well beyond smile sheets to show return on investment.
As learning professionals, we really must pay attention to the skills and behaviours that drive business. In 2023, there will be a shift away from very formal one-and-two-day professional development workshops. Our workplaces and the market in which organizations compete are both ever-changing and highly dynamic. So instead, we will see more focus on leadership approaches that really provide agility and flexibility, to be able to pivot and morph to the needs to your people.
There’s no doubt that L&D can impact the bottom line as well as employee engagement, but the crux of the matter is that L&D must be completely integrated with the business drivers, and be prepared to show a direct result of training and development.
To get first access to our upcoming L&D Trends report, be sure to sign up here.
On January 26, join Glain Roberts-McCabe, Founder & President of The Roundtable along with two very special guests – Tricia Naddaff, CEO of Management Research Group; and Erin Spink, Executive Director of the Institute for Performance and Learning – as we look at some of the biggest developments in the field of L&D. If you’re an L&D professional, internal coach or HR leader aiming to plan an effective talent strategy that puts you far ahead of your competitors, you probably want to know:
- How L&D can continue to move from the “back of the house” to centre stage;
- What the pandemic taught us about community, connection and engagement;
- Where the biggest pain points continue to be when it comes to developing leaders and why traditional approaches have fallen short
