U.S. Spends 24% More On Employee Training Than We Do
Do They Know Something That We Don’t?
Many companies view training as a luxury, not as providing a competitive and strategic edge in the global marketplace. With many Canadian companies scrutinizing costs and tightening purse strings in both administrative and operational areas, how do they prove the return on investment (ROI) from training?
Research has shown that investing in employees through training has a positive impact on employee retention. Those employees you want to retain seek frequent opportunities to learn and grow in their careers, knowledge and skill. Without the opportunity to tackle new tasks, sit on challenging committees, attend workshops, seminars and training programs, they feel they will stagnate. A career-oriented, valued employee must experience growth opportunities within your organization.”
Training is one method of supporting staff and generating new business ideas. It goes beyond developing core business competencies and enhancing basic skill sets, to placing value on learning and promoting a culture of life-long learning.
According to the Conference Board of Canada’s news release regarding the Learning and Development Outlook 2005 – “Canadian organizations spent an average of $914.00 per employee in 2004” while U.S organizations averaged (in the Canadian equivalent) $1,135.00 per employee.
Do they know something that we don’t?
The report went on to say “Only one third of Canadian organizations are learning organizations”. The report further asserted, “High-learning organizations outperform medium and low-learning organizations on several critical indicators.”
So the obvious question that arises is “How do I measure training’s return on investment for my company or organization”?
The tangible or observable benefits of training can be one or more of the following financial gains:
- Time savings
- Reduced insurance costs
- Reduced costs associated with vicarious liability and subsequent litigation
- Increased productivity (profit)
- Improved quality of output and/or
- Enhanced personal performance
Research has also demonstrated that training can be attributed to some of the less tangible benefits, such as:
- Improved employee morale
- Better alignment with corporate goals
- Higher employee retention rate
- Fewer workplace accidents and in some cases
- Better attendance
The Conference Board of Canada report emphasized that it is not only how much, but how, training dollars are spent that is important.
Successful organizations invest in their human resources and benefit from improved business performance. Competent employees can provide not only a competitive edge, but also promote a proactive and preventative environment based on awareness from learning, so choose your training providers with care.
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