Your Secret Weapon for Better Retention and Engagement in 2025

Would you like to have better retention and engagement in 2025?

An important way to do this is to budget for employee development. It is a strategic investment that will help your organization improve skills, retain talent, and increase productivity – and can help you divert other costs and have better business success.

Consider these statistics to see why this is so important - and help justify the budget.

In organizations that invest in development:

• 70% say they will stay for 3 years or longer (SHRM).
• Outperform their peers by up to 20% (McBassi & Company).
• 94% say they would stay at a company longer (LinkedIn Learning).
• 68% of employees said training and development is the most important policy (ClearCompany).
• 218% higher income per employee?(The American Society for Training and Development, ASTD).

Plus, turnover costs 1/2 to 3 times an annual salary. If you can reduce that, you can pay for a lot of development!

Are you convinced yet? I got more if you need it!

5 Key Considerations

1. Assess Organizational Needs

• Identify skills gaps?and areas where employee development can improve performance or address future challenges.
• Review strategic goals?to align development programs with business objectives, such as improving leadership, innovation, or team productivity.

Example:?Conduct a skills gap analysis or use employee feedback to identify where training is needed most.

2. Set Clear Objectives

• Define the specific outcomes?you expect from the development programs (e.g., improved retention, increased leadership capacity, reduced skill gaps).
• Establish measurable goals?such as increasing employee engagement by a certain percentage or reducing turnover.

Example:?We will reduce turnover by 10% over the next year through a leadership development program.

3. Estimate Costs

• Research the costs of training programs?(e.g., workshops, online courses, leadership seminars, coaching) and any associated costs like materials, software, or travel.
• Consider the number of employees?involved and the duration of the programs. Account for both internal and external resources.

Example:?If a leadership development program will cost $1000 per person and you have 10 leaders, budget $10,000.

4. Prioritize and Allocate Funds

• Based on your needs and objectives, prioritize key areas?where development is most critical.
• Allocate the budget accordingly, focusing on high-impact areas like leadership training, technical skills development, or compliance-related training.

Example:?You might allocate 60% of the budget to leadership development and 40% to skill-building workshops for other staff.

5. Track Progress and Adjust

• Regularly monitor the outcomes?of the development programs by tracking metrics like engagement scores, retention rates, or performance improvements.
• Adjust the budget as needed, reallocating funds to more effective programs or scaling back on those with limited impact.

Example:?If employee engagement increases after a new training initiative, consider expanding that program in future budgets.

Contact InfluenceHR Consulting for high-quality affordable options for leadership, employee, and team development!

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