One of the most common factors for young talent leaving their company is the lack of development in their professional skills. These skills are often neglected, leaving your employees frustrated and searching for their next opportunity. In fact, 22% of those who left their jobs attributed their resignation to a lack of development. Creating a leadership development plan is essential for the future of your company.
Learning and development should be considered one of the most important aspects when it comes to talent development, yet companies tend to put it on the back-burner. Inspire will show you why these are often overlooked and how they can be important for attracting and retaining quality young talent.
Why Companies Don’t Invest in Learning and Development
They may seem like obvious strategies to have in place at your company, but more often than not, learning and development programs are often forgotten. There are common pitfalls that companies face. One study found while more and more money is spent on development, a shocking 71% of companies do not think their leaders can effectively guide the company in the future. If these programs are so crucial to companies, why aren’t they effective? Here are a few reasons we have found:
Lack of supervisor support.
A study discovered that employees who had the support and encouragement of their leaders were much more likely to say their employer provided necessary training and development than those who did not have supervisor support. For example, only 20% of those who did not have supervisor support were provided with opportunities to develop their “soft skills.” That number skyrockets to 75% of employees with supervisor support.It can take up to 30% of an existing employee’s salary to train a new hire. Learn more about the importance of investing in #learning and #development from @InspireSoftware:Tweet This!
Focus on short-term profits.
Making a profit is great, but focusing on short-term profits helps the company’s bottom line more than developing employees, which can hurt engagement and performance. One study found companies that invest $1,500 on training each employee will see a 24% higher return than those who invest less.
Training is not continuous.
Some traditional training methods are often too confusing or so difficult that employees just attempt to pass without learning anything. Continuous training not only shows interest in the employee, it also keeps up with the ever-changing business world due to advancement in technologies and consumer trends.
Why Companies Should Invest in Learning and Development
There are a multitude of benefits to investing in learning and development. Some of the most important to consider are the demand for it from emerging generations in today’s workforce, the cost benefits to talent acquisition and the positive effect it carries across your organization.
Today’s talent is demanding career development.
63% of millennials said their leadership skills were not being fully developed. Another survey found that 71% of millennials expect to leave their employer in the next two years and are unhappy with how their leadership skills are being developed. If you think considering this generation’s expectations is unnecessary, then you might have missed the memo that they now make up most of the workforce. Plus, 69% of other generations agree there should be potential to grow their career anyway. Simply put - skill and leadership development is pretty universal.
It’s cheaper to train and develop internally than to hire externally.
Finding the right talent is difficult and expensive. It can take up to 30% of an existing employee’s salary to train a new hire. If you can effectively manage your employees’ development, you will save your budget from paying nearly two salaries instead of investing in your quality talent.
Leadership development kicks off a positive chain reaction.
81% of employees reporting to recently trained managers said they were more engaged in their jobs. When a company improves their approach to training and developing managers and leaders, the results are astounding. The surveyed organizations where those managers worked also reported 114% higher sales, 70% lower turnover, 71% higher customer satisfaction and 90% lower absenteeism...just to name a few.
What the Experts Have to Say About Learning and Development
“Employees don't forget managers who helped them generously along the way. I know I didn't. And I always felt those whom I went out of my way to develop (though I guiltily admit there weren't enough of them) were loyal to me.”
“Top people would often leave during a critical time of growth, forcing us to fill gaps, hire replacements quickly, and cover the same ground of growth several times. Though we never relented on customer service, existing staff and management would often "pay the toll" of the attrition by having to work longer hours, and take on new responsibilities until we could get "back over the hump" on right-sizing the team. During exit interviews, which we were smart enough to execute, we discovered those that left were often not dissatisfied, but more had a feeling of lacking upward mobility and challenge. We were in fact very good at hiring A players, we were just not that great at keeping them for the long haul.”
“We hear that leadership is both an art and a science. Leaders must know the science before they can paint the portrait of organizational success. Leadership development cannot be left to chance. Organizations should be proactive in setting goals, assisting in growth and achieving the very best leader possible for ultimate organizational success.”
Take a Leap and Land on Learning and Development Success
Employees want to grow and develop and there’s always a need for new leaders to step up and take the reigns. Make sure you’re ready for the next leadership change with a program to ensure your leaders know what they need to do. To help, we've created an expansive list of industry terms so you can create a culture thriving on employee development.