Learning and development (L&D) is the lifeblood of every Human Resources Department. Having a competent learning and development strategy enhances employee retention, productivity, business processes, and revenue. According to Forbes, employee development is essential for employee retention. In fact, 93% of employees claim that they are more likely to stay with your organization if you invest in them.
Employee retention is undoubtedly a central HR objective, but there are numerous other benefits of having a sound learning and development strategy that directly influences an organization down the line. Organizations spending at least $1500 per employee report 24% more profit annually than those having smaller or no learning and development (L&D) budgets.
Learning and development (L&D) deliver incredible results when implementing strategically and effectively. It helps organizations attract and retain top talent, enhances workplace productivity, and drives more revenue.
What is Learning and Development (L&D)?
Learning and development is a strategic process to enhance your workforce’s skills, knowledge, competency, and productivity. Specifically, learning is associated with acquiring skills and learning, while development involves broadening, deepening, and aligning knowledge with one’s development goals.
The ultimate goal of learning and development is to enhance and develop the behavior of employees for better performance and sharing of knowledge.
The terms learning, training, and development are often used interchangeably. However, there are minor differences between all three of them. Let’s look at them.
|Learning||The process of acquiring skills, knowledge, or behavior through study, experience, or teaching. Both training and development involve learning|
|Training||Training focuses on teaching appropriate skills and knowledge required for a specific job. The ultimate goal of training is to enhance workplace performance.|
|Development||Development involves broadening and deepening one’s knowledge to align with the goals of an individual and organization.|
Why is Learning and Development Important?
- Modern Employees Demand Opportunities to Learn and Grow:
According to Gallup, 87% of employees express that L&D is crucial in the workplace, while 59% of employees express that having opportunities to learn and grow within an organization is vital when applying for a job.
- Recruiting is more expensive than retaining employees:
According to the 2018 employee retention report, one in every four employees will leave the job, and approximately 77% of that employee turnover could be prevented by employers.
Undoubtedly, employee retention is way more cost-effective than separation, hiring, and productivity. Therefore, organizations are investing in learning and development to retain their top talent.
- Employee Training Enhances your Business Performance and Profit:
Employees are the most valuable assets that a company can have. According to Harvard Business Review, Learning and Development focuses on reducing skill gaps and upskilling them based on their strengths and help organizations increase their profit by 14%-29%.
Furthermore, well-trained employees enhance productivity by 10%. Equipping employees with skills that make them work faster is considered a smart move.
- Improved Customer Service Satisfaction:
Customers often look at employees as experts in their fields to deliver the correct information to them. Employees need to have complete knowledge about the company’s products and services. When a customer schedules a call or session with them, it becomes a fruitful conversation.
Training every employee to handle customer queries and conversations efficiently directly influences customer satisfaction and retention. When organizations invest in learning technology for their employees, it results in a 16% increase in customer satisfaction.
6 Key Considerations for Developing an Effective Learning and Development Strategy for your Organization.
- Align L&D strategy with overall business strategy:
Ensure to align your l&d strategy with your overall business strategy as your organization’s L&D goals are unique. For instance, if your company has prioritized marketing strategy, incorporate marketing courses into your learning and development strategy.
- Organization’s Priorities:
Ensure to make your training and development strategy an organizational priority. Senior managers can drive professional development by providing adequate training, resources, support, and budget. Furthermore, the career development of senior managers should also be one of the significant parts of organizational priorities.
- Resource Use Considerations:
Create effective training and leadership development programs by incorporating resource use considerations in your L&D strategy. You need to consider if you will have gains from in-house training management courses or make strategic use of resources by accessing business classes.
- Availability of Learning Tools and Technologies:
Consider the best learning tools and technologies to incorporate into your training and development strategy. Some of the best tools in corporate learning include leadership programs, case study analysis, and real-world learning.
- Recruitment and Employee Retention Rates:
Recruitment and employee retention are interconnected. However, the expected impact on employee recruitment and retention depends on how effective your learning and development strategy is.
- Future Requirements:
It is essential to consider the future requirements of your training and development strategy. Your L&D strategy should renew as learning and development needs, resources, and tools evolve.
According to research from IBM, an increase in skillsets of employees linked to business value and a well-trained team can result in $70,000 annual savings and a 10% increase in productivity.
Traditional solutions are no longer adequate for enhancing employee’s skills and scaling organizations. Today, we require solutions that address unique learning needs, challenges and tackle different aspects of the organizational learning lifecycle. Effectively managing your learning needs and activities with a learning management system is crucial to enable organizations to adapt to changes and an increasingly evolving and competitive market.
KloudLearn helps deliver engaging and impactful enterprise training and learning and development strategy with its simple and intuitive learning management system. You can create interactive training courses with our powerful course authoring tool. Robust features like Gamification, Social Learning, and Blended Learning help increase employee engagement and overall course completion rates. You can also track your employee’s progress using pre-built dashboards. Contact us and learn more about how KloudLearn can help you transform your enterprise training.