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    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.

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