Maximising business growth through strategic learning & development 

by | Jan 18, 2024 | Industry

A recent report by Deloitte “The Business Return on Learning and Development” has revealed an alarming lack of focus on learning & development despite this being proven as a valuable activity that an organisation should be doing to maximise growth and improve employee performance. In this article we explore the findings from this report and identify the key areas that need to be addressed to improve learning and development at your organisation and how to achieve a 470% return on your investment in this area.

The importance of Learning & Development (L&D)

Learning and development (L&D) is a vital part of any workplace as it can address any skill shortages within a business. L&D involves training and learning activities to boost an employee’s skills, knowledge and performance.

In recent years, L&D has never been more critical and has played a key role in addressing the talent war and skill shortages amplified by the COVID-19 pandemic. The Deloitte report confirms this by highlighting the need and effectiveness of L&D in any business and how it can help both employee and employer in the long term.

Digitisation and ways of working

During the COVID-19 pandemic almost 90% of workplaces introduced new technologies, primarily due to the increase and acceptance of remote work in businesses. This trend has continued, with Australian workers now twice as likely to work from home compared to just a few years ago, yet the delivery and duration of training they receive at work has remained stagnant.

Are you a learning organisation?

A learning organisation is a definition that is fluid and not judged by a single factor. However, there are four categories that can indicate this: Strategy, Culture, Measurement and Structure. Businesses reported in these categories were given a score out of 100 for each.

Learning organisation

The report revealed that the vast majority of Australian businesses could do with better L&D, with only 13% being classed as ‘Advanced learning organisations’. Of the 87% who were not, 9% were classified as Laggards, 36% as Beginner, and 42% as Intermediate learning organisations. 

When businesses were asked to self-identify as a learning organisation, over 90% of businesses surveyed believed they were already learning organisations. This indicates a significant perception gap also exists suggesting a substantial opportunity for many to leverage L&D more effectively.

Barriers, challenges and costs

In the report, 47% of businesses claimed that it’s too hard to implement new training, with 45% reporting that it’s not a priority within their business and 36% mentioning that it costs too much to implement.

On average, employers spend $2500 per employee for training. This figure has only increased 1% between 2019 and 2021. The report also shows for every $1 invested per employee there is an associated $4.70 increase in business revenue.

Undoubtably, businesses need to invest more resources into L&D but hesitancy to spend is at an all-time high due to times of financial uncertainty.

It’s more than just a financial investment

Having effective L&D is more than just an investment to increase business revenue. It can solidify a learning culture and take advantage of the latest learning technology. Staff retention and employee engagement will also increase, which in today’s competitive talent market is an important goal to achieve.

So where do we start?

A pragmatic way for any business that wants to better their L&D is to create a targeted L&D strategy focusing on any current and emerging skill gaps. In parallel, generating a learning culture is great to incentivise participation in L&D and to ensure mentorship from leaders in the business. Allocating time and resources to employees as well as linking any L&D investments to tangible financial metrics such as productivity to measure ROI in the long term.

We can help!

Get in touch to find out how TrainTheCrowd can help you get the most out of learning and development in your workplace, so your business can become an Advanced learning organisation and you can benefit from an increase in employee engagement and retention.

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