“Employee development” and “L&D” are buzzwords in the business world today.
But are they really worth investing in?
We did the research so you don’t have to.
Here are the six key benefits (along with stats to back them up) that your company will see if you invest in employee development.
1. Improve productivity and performance
90% of HR managers say that L&D drives productivity in their organisation.
And it’s easy to see why.
Trained employees are not only more effective and proficient in their roles, but they also have the knowledge and confidence to streamline processes, identify more innovative solutions and more effectively adapt to changing business needs.
2. Increase retention rates
76% of employees are likely to stay with a company that offers continuous development.
Think about it. Ambitious employees are far more likely to remain with a company that offers them opportunities to progress and succeed.
L&D engages those ambitious employees while helping them feel like they’re working towards their own success.
Commit to your employees and they’ll commit to you. It’s that simple.
3. Boost profitability
Companies that offer L&D benefit from a 24% higher profit margin than those that don’t.
Why? Because L&D gives employees the tools they need to be more productive, streamline processes and come up with more innovative solutions.
Which means better work, better output and better profit.
4. Attract top talent
L&D is a deciding factor for 92% of candidates when considering job offers from two different employers.
Today’s top talent are looking for more than just a competitive salary. They want to be challenged. They want to grow. They want access to new opportunities. L&D offers them exactly that.
So, if you want to improve your employer brand and attract top talent in today’s shortage, make sure you’re promoting L&D as a solid part of your offering.
5. Support your business to adapt to new technologies, trends and advancements
89% of businesses say L&D is key to navigating the evolving future of work.
In the past few years alone, the sudden global shift to digital working threw many business off course, as they struggled to adapt to new technologies and ways of working.
L&D gives employees the confidence and know-how to embrace new technologies, trends and advancements as they arise.
So, your workforce can keep up with new time-saving and productivity inducing technologies—and don’t have to worry about your business coming to a stand-still when the market shifts.
6. Save on recruitment costs
Last but not least, businesses that choose to reskill talented employees over hiring new talent to fill skills gaps see 70–92% cost savings on average.
This is not only because they save on recruitment expenses (such as advertising the role, engaging with a recruitment company and screening candidates) but they also save on onboarding and integration, as well as time to productivity.
Choosing to invest in your employees means you can nurture your own talent pool to fill new roles and close skills gaps, without needing to bring in an external party.
Key considerations
While L&D will undoubtedly bring huge benefits to your business, there a few things you should consider before you invest:
- First, be careful to select only the training programmes and courses that are really going to benefit your business and employees. Don’t choose training just for training’s sake.
- Second, consider the amount of time your employees will need to spend on training and how that will affect productivity. A good option to reduce downtime is to stagger training so that no more that a certain number of employees are off at one time.
- And lastly, set a reasonable training budget for each employee and make sure that that budget is spent wisely.
Want to fill skills gaps and improve retention?
Our high-quality training platform (developed in partnership with Learning Tree International and Chartered Management Institute) offers over 200 world-class training courses and certifications with industry-recognised qualifications. See what we have to offer here.
What’s more, you can get an Identifi-exclusive discount on selected Learning Tree International courses. For your exclusive discount, please get in touch here.
