Successful L&D strategy as a tangible value for business - HCM Deck Blog
HR & BusinessLearning & Development
Successful L&D strategy as a tangible value for business
L&D strategy can make it possible to analyse and deliver tools for the professional development of employee competencies. Can that have an impact on your business results? Research shows that regular learning and self-development enables employees to form highly-qualified teams which then increase the revenue of the company and contribute to its growth strategy.
In the recruitment process, candidates must present their skills which will be useful in the performance of the tasks assigned to a given specialist position. However, in order to provide employees with the possibility of regular development and upskilling, employers should offer on-the-job and online training. Additionally, other tools which help a given employee become an expert in his or her field. The organisation of training programmes in the company and building employee competency within teams not only will result in the acquisition and development of skills of the employees as individuals but it will also improve the efficiency of the team as a whole. As a consequence, the revenue of the company will grow.
By comprising all the training materials and tools into one strategy, you will be able to organise L&D processes in your company. Including the improvement of professional qualifications and soft skills. These are necessary for the employees to find their way in the structure of the company in an agile and convenient way.
How can L&D strategy influence your business?
Proper assignment of roles and selection of courses and their impact on the company’s finances
The company’s financial results strongly depend on the way the particular roles and duties are distributed among the employees and how their scope is determined; the subject and frequency of trainings are also crucial in this respect. Even the best business ideas must be based on a functioning organisational structure. Such where qualified employees, suitable for particular positions and tasks, can realise their full potential. Smooth organisation and regular access to L&D opportunities can create a company with a powerful development strategy. And it is indispensable if you want to perform better and better.
Thanks to adequately customised courses, employers can define the strengths and weaknesses of their team members. This way, they develop the best model of cooperation for them, enabling everyone involved to make the most of their skills. This will help the team achieve better results and thus increase the company’s revenue. Gallup’s researchers already proved it. Companies with well-organised teams and engaged employees generate 21% more revenue than those composed of ill-managed members.
The improvement of the company’s financial results
The activities organised as part of optimised L&D have an essential impact on the improvement of the company’s financial results. The financial position of your company is directly related to your employees’ performance levels, so it is really worthwhile to spend sufficient time and energy on the development of their competencies. You should treat that as an investment that will eventually increase the earnings of your company. Measurable data in this respect is provided in Gallup’s report from 2013. According to the study, actively disengaged employees and lack of trainings cost American companies $450 billion to $550 billion in lost productivity per year. Systematic access to L&D tools will help you build an effective team of employees. This can provide your company with a strong basis for development.
We will help you devise an L&D strategy that will benefit your business.
Another report by Gallup demonstrates that up to 85% of employees are not engaged at work. Most employees do not feel any bond with the company they work for. The results of that can be disastrous for the company. Employees who do not feel well at work will only do the necessary minimum: they will not show initiative or actively participate in teamwork. That, in turn, may reduce the company’s revenue considerably. Disengaged employees are also more likely to look for new job opportunities, and that can bring even more negative outcomes.
The question is: how to engage your employees? How to involve them actively in the development of your company? They should be provided with development opportunities and feel appreciated. You need to show them that they matter in the company. Thanks to consistent use of L&D tools, you are able to increase the level of your employees’ organisational commitment, which will encourage them to stay with the company and become engaged in their work. Consequently, the productivity of the team will grow as well, along with the company’s revenue.
Reducing training costs without reducing quality
According to the Society for Human Resource Management’s report, it takes 42 days to hire a new employee on average, while the cost of training the new hire is over $4,000. If a company regularly loses employees, the numbers will definitely affect its financial situation. This is why it is normally more profitable to retain an employee who has already been trained and knows their tasks within the team.
Another study shows that for 33% of professionals, boredom was the top reason why they left their workplace. Being bored actually means having no sense of mission, lack of engagement in teamwork, and lack of appreciation from the employer. Persons who see that they have development opportunities in their current position are less likely to search for new offers.
Hence, it is a good idea to invest in L&D tools for your present employees. So that you do not have to spend much more on training new ones. What is more, thanks to the development of modern e-learning methods, the costs of employee training can be significantly reduced without any loss in quality. By implementing L&D processes focused on cost optimisation, you will be able to plan a series of courses that will actually be less expensive than single courses on various subjects.
Reducing the risk of losing the best talents
The best talents are those employees who do not limit themselves to automatic performance of their professional duties (even if done with due diligence): they become involved in the long-term development of the company. Such employees are easy to lose, though, if the opportunities you offer them are not sufficient. In 1997, Jac Fitz-enz said that losing ten employees costs one million dollars. In fact, a well-managed company cannot afford to lose people who increase the company’s revenue with their knowledge and qualifications. As Karie Willyerd said, “a high performer can deliver 400% more productivity than the average performer.”
Losing ten employees costs one million dollars. (Fitz-enz, J. (1997). It’s costly to lose good employees. Workforce)
Training new employees up to the level of the exiting specialists can be long and costly. The employees who care about the development and growth of the company will be interested not only in social benefits but also in upskilling opportunities. When you concentrate on optimising your L&D processes, consider the needs of the best talents: if they are able to feel solidarity with the company which takes care of their personal development, they will be loyal and goal-oriented.
Filling the qualification gaps
Lifelong learning, especially in terms of professional development, ensures better preparation for work in a professional position. And yet, research shows that even 80% of Americans agree there is a skills gap, and 35% say it affects them personally. Moreover, nearly 60% of American employers have job openings that stay vacant for 12 weeks or longer, which generates great losses for the company.
The collected data suggest that there is a shortage of qualified employees on the labour market. This is also visible in large teams. Particular members have skills gaps which often result in the decrease in the team’s performance levels. The gaps usually are a result of a nature of a given company and post. Also by the need to change the mode of work into remote. Or by the lack of experience of the employee in a given position. L&D tools can noticeably reduce the skills gaps of individual employees. They can also help in building a team where each member performs tasks which are best suited to his or her qualifications. This is essential when it comes to responsible team management.
Increasing the number of trained employees
A properly composed team should include persons who are best prepared for their functions. L&D trainings allow employees to find out how to make the best use of their capabilities. But also to develop their competencies, and acquire new skills. In short, qualified personnel is more efficient and profitable for any company. According to the 2015 Saratoga study summary, each $1 spent on employee development generates a 160% profit for a company. This gives you a clear picture of the income that a company can get by improving their employees’ qualifications. You must remember, however, that every training should be carefully planned, prepared, and adjusted to the company’s objectives; otherwise, it may not bring the desired results.
A high performer can deliver 400% more productivity than the average performer. (Karie Willyerd)
Learning process digitalisation in the educational system for employees
Modern technologies offer great opportunities related to the variety of ways in which courses can be organised. Tools such as mobile apps, artificial intelligence, or augmented reality are still underestimated when it comes to the methods of qualification improvement. On the other hand, according to ADP Research Institute, 82% of employees have positive feelings about a future where they will use modern technologies in order to learn and expand their knowledge anytime, anywhere. Modern methods of learning provide employees with quick and effective ways of acquiring knowledge in a friendly form. The employees’ positive attitude to these methods of learning, as mentioned above, can contribute to the effectiveness of the training. Undoubtedly, digital technologies are the future of L&D. You should take them into consideration when planning your programme of employee development.
The social learning theory as practised in L&D strategies
The social learning theory is based on the assumption that human beings learn not only through specific activities but also by observing and imitating others. This theory can prove extremely effective at work, where particular team members perform their task in a constant contact with one another. A study by Brandon Hall Group reveals that social learning takes place in organisations all the time, even if employers are not consciously involved in the process. However, the process must be properly constructed so that the employees can share knowledge among one another in the best way possible. This will also allow the employer to have influence on how the career paths of the employees develop.
Effective learning rules – how to follow them?
Particular specialists enumerate various rules of effective learning. F.e. the one saying that you should do your work right for 85% of the time and then you can allow yourself to make some mistakes for the remaining 15% of the time, as this is the best way of development. In the course of work, however, there may occur some risk factors which make people break the rules of effectiveness. Constant distractions or doing several things at once are some of these factors. Effective learning is based on the use of schemes. They encourage learners to acquire knowledge and help them remember and use the new information.
This may be difficult when it comes to organising a course for employees. As a result, the effectiveness and usefulness of the course are lost. On the other hand, a well-structured L&D process will not only help employees to acquire new information effectively. It will also teach them how to concentrate on their work and learn new skills successfully. This way, they will become valuable members of the company
Shortening travel time and reducing travel costs
In general, business trips are expensive. In their study, Runzheimer showed that the average business trip costs more than $1,200 and that the costs are on a steady increase. Moreover, the long time and discomfort of travelling are discouraging factors when it comes to going to courses; besides, they lower the level of knowledge acquired during the course. Employees who have to travel long simply get too tired to learn when they arrive. Thanks to the above-mentioned modern technologies, the time of travelling can be made shorter or even completely eliminated. As a result, the travel costs are lower, too and the effectiveness of the training goes up.
Investing in human resources at the highest level will help you achieve the goals of your company
Learning and Development processes are now integral elements of managers and HR leaders’ activities aiming to enhance the employees’ productivity and to increase the company’s revenue. An adequately prepared and consistently implemented L&D strategy will help you organise courses in an effective way. Thus, it will help fill in the skills gaps among your employees and improve employee engagement. Ultimately, this will translate into their willingness to co-create and co-represent your company. Competent and proud employees are the key to the increase in profit for any company.
Let’s build a successful L&D strategy that will effectively address the challenges you face and that will be based on the best practices in the field.
How to make Diversity and Inclusion something more than empty phrases, 80% of Spanish employees prefer online to traditional training and more. This is the L&D Digest for October 2020.
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