4 Business Outcomes That Improve Through Effective L&D
Learning and development programs have long been an integral part of ensuring workers are equipped with the knowledge needed to drive positive business outcomes. Innovative tools and emerging technology have helped bolster the efficacy of learning and development (L&D) in the workplace.
Now, as organizations adapt to the realities of the pandemic era, it’s even more imperative than ever for leaders to prioritize and strengthen their learning and development offerings. By doing so, companies can improve a myriad of business outcomes, including decreasing turnover, driving engagement, and attracting top talent to your organization.
L&D Encourages Long-Term Growth
From shifting desires among workers to the Great Resignation, the war for talent has become more cutthroat than ever before. Tapping into today’s evolving labor market requires organizations to be agile – adjusting internal culture and benefits as needed to maintain a competitive edge.
As SHRM shares, “skills training is one of the top perks younger workers look for in a new job, according to a 2021 Gallup survey conducted on behalf of Amazon. In that survey, 66 percent of workers ages 18-24 ranked learning new skills as the third-most important perk when evaluating new job opportunities, behind only health insurance and disability benefits.”
With millennials expected to make up 75% of the U.S. workforce by 2030, and Gen-Z workers projected to triple to an estimated 51 million by 2030, it’s critical for employers to establish robust learning and development programs to drive sustainable growth, improve engagement and productivity and appeal to the needs of the modern worker.
Learning Opportunities Drive Employee Retention
Turnover is a problem that continues to plague many businesses. And the harrowing reality is, the cost of hiring is much more expensive than investing in employee retention. As Gallup’s research shows, “The cost of replacing an individual employee can range from one-half to two times the employee’s annual salary — and that’s a conservative estimate. So, a 100-person organization that provides an average salary of $50,000 could have turnover and replacement costs of approximately $660,000 to $2.6 million per year.” Let that sink in for a moment…
Not only does turnover negatively impact productivity and morale, but it can damage an employer’s reputation and cause revenue loss due to unfilled seats. Retaining employees through leadership and development initiatives is simply a more cost-effective solution for organizations. Investing in your team communicates that your employees are valued, improves individual performance, and helps nurture the skills needed to promote internally and fill crucial managerial roles.
Training Improves Your Bottom Line
Your employees are your most valuable asset. From upskilling to bridging a crucial knowledge gap, companies with effective learning and development programs have shown an increase in profit between 14%–29%. Plus, well-trained staff have proved time and time again to exhibit higher productivity levels. By equipping your team with the resources and tools needed to perform their job at an optimal level, your organization will fuel upward mobility for both the individual and organization as a whole.
Strengthen Customer Service & Loyalty
When a customer contacts your organization, they are seeking the expertise of your workers to answer their questions or resolve an issue they’re facing. The customer experience is a crucial piece of the picture. A positive experience will improve your customer retention and lifetime value numbers. Get it wrong, however, and you’re leaving your business vulnerable to high churn rates. When employees are empowered with the knowledge and skills needed to successfully interact with customers, it’ll have wide-reaching benefits for the organization, employee, and client.
A strong learning and development strategy that leverages innovative technology to drive positive outcomes is the key to moving the needle forward in today’s business world. To learn more about ways your company can develop skill sets and help your employees grow through the power of training, contact our team today.