Why Every Company Needs a Solid Talent Development Program

According to a publication by elearningindustry.com, an estimated 25% of employees leave their job because they don’t have a full understanding of how to complete the work they’ve been assigned and aren’t provided

with any kind of on-the-job training. In simple terms, MOST people DON'T wake up hoping to do a lousy job that day at work.  They do however wake up one day LONG after they've stopped caring and decide to do something better with their life. 

Flip to the other side of the coin, and those organizations that do offer solid training and development see an increase of 26% more revenue per employee. Now, imagine that kind of increase across every area of your business. A 26% increase in revenue per employee, per location, per year, multiplied by every line of business or revenue stream in the organization.

It adds up.

Until recent years, few organizations have really understood the impact that training and development has on an organization’s bottom line. Classic initiatives to increase profitability relied on more demanding sales quotas, harsh cuts to resources or yet another marketing campaign. In short, reducing people expenses while attempting to increase sales by generating more leads. Hmmmm, let's let that logic sink in for a second ... you with me?

What if there was a way to make ONE employee as effective as THREE? Additionally, what if this employee tended to stay 3 times longer than the average employee in an organization? Impossible you say, not true. There are a number of examples of companies that have done just that and attribute their talent development among key factors for success. (Sure ... think Disney but also think The Container Store.)

The Association for Talent Development released this quote in their 2015 State of the Industry Report:

“Employee learning and development is taking center stage as business leaders increasingly understand that a highly skilled, knowledgeable workforce is critical to achieving growth and success.”

It's not just the workforce by the way, it's also YOUR CUSTOMERS! Today's customers have A LOT more options than they did just 5 years ago and that trend will continue. Customers are becoming less tolerant of mediocre service or difficulty in use because it's EASY to choose your competitors. Smart companies are creating resources that give their people the tools and information they need to serve the customer better, and those companies are winning.

In short, better trained talent serves the customer better, requiring less talent and attracting even more customers. Let that percolate for a second, got it? Good.

Unfortunately the knee jerk reaction in the trying financial times of an organization, is to draw back from talent development in an effort to maintain profit goals. This is akin to stopping your heart to reduce the bleeding. 

While the stats are trending downward as smart companies embrace this philosophy statistically the majority of executives believe training is an "off ramp" for revenue. However, every article I've read about the most successful companies in the world have executives talking about training as one of the key contributors to success along with innovation, leadership, creativity and a customer focus. Where's the disconnect?

Chances are, if you’re reading this, you’re likely no stranger to the benefits of investing in training and developing your people. You've probably experienced variable success with your initiatives. The formula isn't rocket surgery but it's easy to do wrong. If you want to learn more Download our eBook to take a look at the many types of training that are available to your organization, and discover how to wade through the potential delivery options to find a solution that’s best for your organization.

Good luck!