At a time when learning and development (L&D) pros want to align learning to business goals, this is good news. L&D pros can walk into the C-Suite, share quantifiable business benefits, and bolster the case for learning.
They can also point to other benefits, as well. The Workplace Learning Report found that 7 in 10 employees say learning improves their sense of connection to the organization (which is super helpful in a remote or hybrid environment). And 8 in 10 say it adds purpose to their work.
Let’s unpack exactly how learning benefits the business.
1. When workers learn, they’re more likely to stay
Even though we’re in the era of the Big Stay, 90% of companies are still concerned about retention. And the No. 1 way to encourage employees to stay is to provide them with learning opportunities.
That’s especially true now, with skills changing so rapidly. When employees know that the company is willing to invest in them and ensure their skills stay current, it makes workers feel good about the company and drives loyalty.
For proof, look at Sam’s Club, the grocery outlet owned by Walmart. While many businesses across the U.S. were short on help in late 2021, Sam’s Club’s 600 locations were fully staffed. The reason? The company’s extensive employee development program.
Sam’s Club helps all of its associates — whether they’re in stores, distribution centers, or home offices — “develop essential skills for the roles they’re in now, as well as the roles they’d like to see themselves in down the line,” says Jennifer Buchanan, vice president, Walmart Academy, in a SHRM article.
The result: 75% of Sam’s Club managers started with the company as hourly associates, which means that employees really stick around. “If [employees] are confident in what they’re doing and they can see a clear path for their career,” Jennifer adds, “they’re more likely to stay with the company.”
2. They’re more likely to make an internal move
According to LinkedIn’s Workplace Learning Report, 87% of L&D pros say they can show business value by helping employees learn the skills they need to move into different roles.
That can have a pretty serious impact on the bottom line. Gallup has found that U.S. businesses alone lose a trillion dollars every year because of voluntary employee turnover. Replacing one employee can cost anywhere from a half to two times that employee’s salary.
“Top talent gravitates toward companies that demonstrate a consistent practice of promoting from within, offer diverse opportunities for talent expansion, and focus on potential during the hiring process,” says Justin Foster, senior vice president of people experience at Radian. “The emphasis on employee career development and internal mobility is a cornerstone for attracting and retaining the best.”
When employees are given opportunities to learn, they’re more likely to find their next role within the company. Consider the example of software development company Vertafore. All new hires at Vertafore go through a detailed orientation, followed by quarterly courses on topics such as “How to Manage Your Career” and “How to Become a Self Advocate.” They’re also offered management training and a mentorship program and encouraged to move internally.
The company’s efforts have paid off. In 2021, 591 — or roughly 27% — of Vertafore’s employees across Canada, India, and the U.S. made an internal move or got promoted.
3. Active learners are more likely to move into management or leadership roles
When companies invest in learning and development, they can create pipelines of future leaders. Organizations such as SAS, Amazon, AT&T, and Randstad U.S. all offer leadership development programs.
How do these programs benefit the business? They allow companies to identify potential leaders early on and shape them to their specific needs and values. And they tap into long-term employees, who often have deep stores of institutional knowledge.
That’s been the case for Adobe, which launched its Leadership Circles Program in 2013 to diversify Adobe’s leadership pipeline, particularly within the sales division. Every year, 150 women are nominated to the program. Typically, they’re high-performing, high-potential leaders just below the director level.
In Leadership Circles, participants learn about everything from how to define success and leverage strengths to how to align with values and build a personal board of directors. They join small peer-based groups, where they support and coach one another. And each participant works with a dedicated career coach, who provides personalized guidance.
So far, more than 800 high-performing women have graduated from the program. Even more impressive, 35% have been promoted to director-level or above.
Final thoughts: L&D metrics are changing
For many years, L&D leaders have measured success on “vanity metrics,” such as employee satisfaction surveys or the number of trainings delivered.
But that’s changing. Now, 36% of L&D professionals report that they measure learning based on performance reviews, while 31% look at retention and 30% measure business impacts such as deals closed or customer satisfaction.
To some extent, it goes back to that old business adage that you can’t manage what you can’t measure. It’s also crucial in showing just how much learning is worth.
