Why should you care about training? Short answer: because it makes financial sense. In a previous post on motivation and engagement, we quoted some of these reasons but also promised we'd publish a separate post focused on some of the many arguments, supported by data. So here we go!
According to Gallup, 87% of employees worldwide are disengaged at work. Productivity and profitability often suffers as a result. The opposite is also true: in businesses with highly engaged teams, Gallup found that profitability increased by 21%, sales productivity by 20%, output quality by 40%, and absenteeism went down by 41%.
In a Dale Carnegie and MSW study, companies with engaged employees outperformed others by up to 202%.
A study by Workplace Research Foundation run over a number of years found that a 10% increase in investment on employee engagement could increase profits by $2,400 per employee per year, and that increased employee motivation resulted in a higher share price.
And, surprise surprise, what employees need to stay engaged, is good learning and development opportunities:
"87% of millennials say professional development or career growth opportunities are very important to them in a job." (Gallup)
“70% of respondents said that job-related training and development opportunities influenced their decision to stay at their job. “ (NCTI)
46% of employees cite ‘limited opportunities to learn new skills’ as the top reason why they’re bored in their current roles and looking for a change.
80% indicate that opportunities to learn new skills would increase their interest and engagement (Udemy).
If that doesn’t convince you, numerous studies have shown how learning & development can impact the bottom line:
According to Salesforce, continuous training can yield up to 50% higher net sales per representative.
Companies that offer comprehensive training programs have 218% higher income per employee than companies without formalized training, and enjoy a 24% higher profit margin than those who spend less on training (ATD).
In a study of more than 3,100 U.S. workplaces, the National Center on the Educational Quality of the Workforce (EQW) found that on average, a 10% increase in workforce education level led to an 8.6% gain in productivity, while a 10% increase in the value of equipment increased productivity by 3.4%.
From our own experience, we’ve seen productivity increases of 8% at Uber, sales increases of 66% from mobile operator Tigo and 25% improvement in quality at on-demand delivery platform Rappi. All from using EduMe, and compared to existing solutions.
Convincing enough for you? See what it's like to create effective microlearning, easily.