SHIFT's eLearning Blog

Our blog provides the best practices, tips, and inspiration for corporate training, instructional design, eLearning and mLearning.

To visit the Spanish blog, click here
All Posts

10 Statistics on Corporate Training and What They Mean for Your Company’s Future


Benjamin Franklin once said “an investment in knowledge pays the best interest”, and we think Mr. Franklin got it spot on. Training isn't something that's 'nice' to have in your organization. It's an absolutely vital part of a company's long-term investment and growth strategy. 

This seems like a simple point, and it's something that nearly all companies, and L&D managers alike, will agree with. But do companies provide enough training? And what does current research say about the state of corporate training and eLearning? In this post, we look at ten key statistics, and what they mean for your company's future.


 

STATS-CORPORATE-TRAINING

1) We Need to Invest More in Training

In 2018, the U.S. Bureau of Labor statistics found that companies with fewer than 100 employees gave only 12 minutes of manager training every six months. Organizations with 100 – 500 employees provided just 6 minutes.

Source: HR Professionals Magazine

2) Employees Want More Training

A long-term research project commissioned by Middlesex University for Work Based Learning found that from a 4,300 workers sample, 74% felt that they weren't achieving their full potential at work due to lack of development opportunities.

SourceArticle by The Learning Wave – a New Zealand leadership development organization providing management education and training.

3) Convert Beliefs into Practice!

The same research by Middlesex University’s Institute for Work Based Learning showed that 56% of HR Managers considered training and development to be an essential business enabler. Here's a clear disjunctive between manager beliefs and practice . HR ManagerS consider it important, but they aren't doing ENOUGH to increase employee training opportunities. (read points 1 and 2 again).

Source: Article by The Learning Wave – a New Zealand leadership development organisation providing management education and training.

4) Employees Are Disengaged at Work! 

As many as 1 in 3 people leave their organization within the first year, either voluntarily or involuntarily. An incredible 22% of staff turnover happens within the first 6 weeks of employment. 

Also, according to Gallup's 2017 State of the Global Workplace report, 85% of employees are not engaged or actively disengaged at work.

What can we learn from this? We need to do something to engage workers... and especially now that many are working remotely. If this applies to your organization, it's time to do something about it. Higher retention rates and less labor turnover is crucial for business success.

Source: Gallup.

Also read: 5 Secrets to Increase Employee Engagement With Technology

5) Invest in Onboarding Early On.

On-boarding your new employees early-on is the best decision as if you don't you’ll be much more likely to lose them.The Wynhurst Group research reveals the importance of onboarding to build positive first impressions.

Also, they found: “4 percent of new employees leave a job after a disastrous first day; most decide whether they feel ‘at home’ in the first three weeks at a new job; and 22 percent of staff turnover occurs within the first 45 days of employment.”

These are astounding figures. But what does this mean for your company's future? It means that you need to understand the value of onboarding and invest in this type of online training early on. If you don't you'll be contributing to the above figure through employee turnover.

Source: Sequioa Cap

6) Make Retaining Your Employees a Priority

Work Institute's 2018 Retention Report stated that one in four workers leave their jobs. Nearly one-third of that turnover was due to to unsupportive management and a lack of development opportunities.

The lesson here: invest in retaining your employees by making sure they feel supported by their supervisors and that they have enough learning experiences. After all, the cost of retaining present employees is much less than the cost of replacing them. Help employees expand their knowledge, offer more training options, help pay for university courses, etc.

Read more: The True Cost of Not Providing Employee Training

7) Increase Learning Transfer

A 24X7 Learning survey revealed that only 12% of learners say they apply the skills from the training they receive to their job. This suggests that learner needs aren't being mapped effectively before developing a program.

Source: A report by 24x7 Learning: "Workplace Learning - 2015". September 2015

 

8) Take Learner Needs into Consideration

According to a 2015 ATD research study, only 38% of managers believe that their learning programs meet their learner’s needs. In other words, 62% of HR managers believe that they are not doing a good job meeting the learner’s needs. Therefore, this 2016, make sure objectives line up with learners’ needs. If learners don’t see the course as relevant and practical to their real-life challenges, they will become frustrated.

Source: Kasperspiro.com

9) Make Workplace Training More Fun

One out of every three employees say that uninspiring content is a barrier to their learning. This means we need to try to develop training programs that entertain and inform. Not only is fun training more enjoyable for the learner; it’s more effective, translating into less money spent on retraining.

Source: Train Like a Champion Infographic.

10) Ineffective Training Costs Money

According to Harvard Business Review, although organizations spend more than $350 billion globally on training, they are not spending their money effectively. Just consider these stats:

  • 70% of employees report that they don’t have mastery of the skills needed to do their jobs;
  • Only 12% of employees apply new skills learned in L&D programs to their jobs; and
  • Only 25% of respondents to a recent McKinsey survey believe that training measurably improved performance.

Given the statistics above, what is the total loss to a business from ineffective training?  It's staggering: $13.5m per year, per 1,000 employees, according to Grovo. 



The conclusion? It seems like Mr. Franklin's advice is going unheeded. If we want to stay competitive in business, it's time to get serious about training and investing in knowledge. Otherwise, we're going to lose interest...in more ways than one.

New call-to-action

     

 

Related Posts

Four Ways to Create an Effective mLearning Strategy

Chief learning officers, learning leaders, and training coordinators everywhere are well aware of the need to increase mobile training programs. After all,  74% of employees say they access resources from their smartphones to do their jobs— and that number is expected to continue to grow. 

How to Design Microlearning Around Moments of Need

Let’s be honest: your employees use smartphones and tablets every day, everywhere — including in your workplace.

  • 8 min read
  • Thu, Jun 16, 2022 @ 04:44 PM

The Basics of Motivational eLearning Design

When we think of the word, motivation, instantly two things come to mind. First, when we are young, many outside things motivate us, a desire to do something, the reality of punishment from our parents, positive and negative reinforcement of what we are doing, etc. All of these things help to motivate children, and in some cases, it has a positive effect, and in other cases, it does not. The more proactive the motivation, the more positive the response to that motivation, the more reactionary the motivation, the more negative the response. The second picture that comes to mind is a learned reaction to something. Like Pavlov and his dogs, which would salivate when he rang the bell, motivation can be at times subconscious. However, there are much more things that drive the motivation of human beings, and in the arena of learning, there are some critical pieces to the puzzle that have to be developed so that learners feel the value of what they are learning and how it will benefit them. The rewards of their success must be considered from a variety of sources and satisfy them on a variety of levels, and as instructional designers of e-learning programs, we must not only understand these factors but be skilled in utilizing them in the courses that we design.