Most employers intuitively know the value of training. However, finding tangible numbers to support the case for increased training can be tough. So, here are nine statistics that highlight the benefits of training and demonstrate the difference that training can make to your business’s bottom line.
1. Employee retention - According to CEOWorld, “In 2018, U.S. Bureau of Labor Statistics reported that the average tenure at any one company for employees between the ages of 25-34 was 2.8 years”. The mobility of younger employees is a significant expense to employers, but there is a solution. According to Avado research, nearly two thirds (63%) of UK employees say they would switch employers to secure more regular training opportunities. This is a telling message about the value of training for all companies – whether you want to retain the invested value of your current employees or lure the best talent away from a competitor.
2. Matching employee learning expectations - According to LinkedIn’s 2018 Workplace Learning report, the workplace is the preferred location for learning – 68% of employees surveyed reported that they preferred to learn at work.
3. Greater employee engagement – Gallup state that “worldwide, only 13% of employees working for an organization are engaged” – and engagement has a direct impact on productivity. The same report says that “engagement (is) the result of concrete performance management activities, such as…providing development or promoting positive co-worker relationships”.
4. Increased productivity - According to ATD, employees who are well trained bring in an average of 218 percent more income than employees who work for organizations with less aggressive and comprehensive training approaches.
5. High potential ROI - a study by ESI International reviewed the study and productivity outcomes of more than 30,000 corporate students. It found that the percentage of net value in monetary terms (benefit less cost) attributable to training was 191%. The same study found that the companies and government agencies investing in these training activities received $2.91 for every $1.00 they invested in training.
6. Increased profit margins - A study by American Society for Training & Development (ASTD) covering more than 575 listed companies found that firms that invested an average of $1,595 per employee in training experienced 24 percent higher gross profit margins that those who invested less in training.
7. Your competitors are investing - According to Training Magazine’s 2017 report, 37% of US companies in their 2018 Industry report increased their training budget in 2018. 39% of companies in the Manufacturing and Distributor sectors reported doing the same.
8. Develop customer-focused skillsets - According to LinkedIn’s 2018 Workplace Learning report, “Talent developers say that training for soft skills is their key focus for 2018…and industry experts and organizational partners agree that this should be the top focus for talent development in 2018”.
9. Build key skills you can’t recruit - According to the Wall Street Journal, 89% of executives say it is difficult to find people with soft skills.
Customer service, collaboration and innovation skills are an ongoing asset to your business; but they can be difficult and expensive to hire in. Conversely, investing in your existing teams and developing the skills you need for the future can have a profound impact on the morale, retention and productivity of your business.
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