The Learning Curve is the Earning Curve
Josh Bersin
Global Industry Analyst, I study all aspects of HR, business leadership, corporate L&D, recruiting, and HR technology. ?
For many years I've been travelling around the world giving speeches and discussions on the future of corporate learning. One of the points I point out is the fact that today learning is part of economic survival for most of us. If we don't stay current, up to date, and continuously re-skilled in our professions (regardless of what they are), we fall behind.
Thomas Picketty, the economist who wrote "Capital in the 21st Century," (the hallmark book which first pointed out the tremendous income inequality in the US) stated it clearly in the quote below. Over more than 300 years of history, the only predictable factor that drives individual earnings potential is "skills and knowledge."
Last week the Bureau of Labor Statistics published the 2015 data on earnings as related to education, and the proof is here.
If you look at the data on income inequality, which is easy to find, you see a direct relationship between income gaps and education gaps. Today in the US, for example, the disparity in wealth is striking - since 1980 we've seen more than twice the wealth in our country go to the top 1%.
During this same time US education levels have dropped. This year we are 24th in reading and 36th in Math, so we have to believe that the enormous growth in economies like China (ranked #1 in both reading and math)
On a business level, our employment brand and ability to attract and engage people is now directly related to learning. My analysis of Glassdoor ratings shows that "career opportunities" are twice as important (measured through correlation) as compensation in predicting whether or not an employee would recommend your company as a great place to work.
For Millennials, who are now becoming the core part of the workforce, learning opportunities are the #1 factor in selecting a job.
Just a reminder for all of you in L&D, HR, or just business professionals in general: this is something you can take advantage of. Coach your people; spend money on quality on-boarding and career development; reward people for helping others in their jobs; create a great self-directed learning experience at work.
Today the quality, experience, and timeliness of your training and education is more important than ever. Enough said.
(If you would like to browse "Ten Trends in Corporate Learning" please take a look at the following Slideshare.)
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About the Author: Josh Bersin is the founder and Principal of Bersin by Deloitte, Deloitte Consulting LLP, a leading research and advisory firm focused on corporate leadership, talent, learning, and the intersection between work and life. Josh is a published author on Forbes, a LinkedIn Influencer, and has appeared on Bloomberg, NPR, and the Wall Street Journal, and speaks at industry conferences and to corporate HR departments around the world. You can contact Josh on twitter at @josh_bersin and follow him athttps://www.dhirubhai.net/in/bersin . Josh's personal blog is at www.joshbersin.com .
Other Recent Articles by Josh Bersin:
- People Analytics Takes Off
- The Geeks Have Arrived: People Analytics is Here
- Are you an Overwhelmed Employee? What to do about it.
- Putting the Strategic into Strategic HR
- The Alliance: A Manifesto for 21st Century Talent Management
- Interview with Reid Hoffman about Talent in the Networked Age
- Why it's time to Redesign HR
- How to Build The Irresistible Organization
- Learning to Be Yourself
- The Secret to Effective Motivation: Purpose
- The Myth of the Bell Curve
- What's Good for Women is Good for Business
- How to Make Work Fun
- Why we Do Need The HR Department
- Are Performance Appraisals Doomed?
- How I Hire: Trust Your Gut
- The MOOC Market Takes Off
- Employee Retention: The Time is Now
- The Datafication of HR
- Quantified Self: Meet the Quantified Employee
Sr. Executive Relationship Manager at UKG
8 年Great share! Robert McNichols, appears to be in line with your culture of "on-going education and training" for your employees. Thought this would resonate with you!
Human Resources professional with 10+ years of experience including Corporate and Business HR
8 年This is very good stuff that you have shared.I liked the statement-Learning curve is the earning curve. This also means that HR set ups have to understand this new reality and give a fresh look to all learning and talent development initiatives
Group Vice President @ABB |Accelerating Change for Better Future and Results
8 年Finally someone has understood the real mechanism inside the distribution of wealth. Most (leftists) mistakenly believe that is just about inheritance taxation issue.
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8 年In my opinion, continuous learning is important in general. Now, about the correlation between earnings and education, I think the business model of universities and colleges -because education IS a big industry in this country- is where the gap starts to be created. To get a higher education is getting more and more expensive while in China is affordable because the government has made education a priority. Learning is a never ending process and all aspects of society will undeniably benefit from a culture that understands the importance of the never ending process. Maybe corporations can invest in higher education more in a way to cultivate talent with the knowledge and the skills that will produce the earnings for both sides, the company and the individual; then they can invest less in continued professional training and education. The gap between education and earning inequality is not an impossible task to take on.