How L&D Programs can Future-Proof Your Workforce
Written by HRCap, Inc.
August 4, 2022
Companies are beginning to prioritize developing and implementing Learning and Development (L&D) programs as they become increasingly important. Almost 60% of 1,260 learning and development professionals globally identified upskilling and reskilling as their top priority in 2021, according to the Workplace Learning 2021 Report from LinkedIn Learning.
The skills gap is detrimental to a company’s growth, and 87% of companies say they have skill gaps or expect to within a few years.
Employees continuously look for a strong L&D program when applying for a job. According to “Future of Work and Employee Learning 2019 Report,” 79% of job-seekers say an important factor in choosing a career is that the employer offers a formal training program.
Additionally, to effectively build a multigenerational workforce, organizations must organically attract and recruit Gen-Z talent, who prioritize L&D in their job search. Nearly 90% of Gen-Zs say formal training programs are important to them in their careers.
[Related: HRCap White Paper “The Key to Leading a Multigenerational Workforce”]
Despite the high costs associated with investing in and executing L&D programs, companies can reap several key benefits and realize a greater return on their investment.
Clear Benefits
1. Increased Employee Experience
According to Sitel’s 2019 Report “Future of Work and Employee Learning,” 92% of employees reported they are more motivated and engaged in their work when they learn something new on the job. Censia’s study on Upskilling and Reskilling also demonstrates that organizations that invest in learning technology saw a 54% gain in productivity and engagement.
Employees that partake in L&D programs will also feel more confident in their skills and, as a result, feel more satisfied at their jobs. In Gallup’s American Upskilling 2021 Study, 71% of workers said that job training and development increased their job satisfaction.
Since L&D program increases job satisfaction, employees tend to stay longer with their managers. According to Ottowa University’s 2021 article, companies that offered career development initiatives saw increases in staff retention and a 59% lower staff turnover rate.
2. Stronger Organizational Capabilities
As employees upskill and reskill, employees learn the necessary skills to do their job well, which will boost performance and productivity. At companies that implemented L&D programs, 43% of CEOs reported higher workforce productivity.
With greater productivity and proven skillsets, organizations are equipped for better job mobility and succession planning. L&D drives internal promotions and strengthens the talent pipeline.
In fact, 75% of employees that participated in L&D programs report career advancement. As such, organizations can strengthen the pool of internal candidates and drive succession planning.
3. Encouraging Company Culture
Companies that have an effective L&D program also often have a better company culture because of an increase in employee engagement and job satisfaction. Based on PWC’s 2020 Annual Global CEO survey, 60% of CEOs at more advanced upskilling organizations said their upskilling program has been “very effective” in creating a stronger corporate culture and improving employee engagement.
4. Enhanced Corporate Branding
By investing in L&D programs, companies will be able to see improvements in company reputation and corporate branding because of the improved employee engagement, job satisfaction, reduced turnover rates, and overall better workplace culture.
Improved branding not only helps with talent attraction and acquisition, but can further improve a company’s market standing with greater visibility and credibility among its customers, partners, and clients.
5. Increased Profits and ROI
As such, enhanced corporate branding and proven credibility help organizations realize increased profits with greater business prospects, increased productivity, and reduced costs in turnover. Companies that invest in employee training and have highly engaged employees see 24% higher profits. Furthermore, 38% of CEOs of upskilling organizations were very confident in their own revenue growth.
Conclusion
Effective L&D programs essentially improve the overall employee experience, which then ultimately enhances the company’s culture, reputation, and financial performance. Companies can strengthen their workforce planning and realize sustainable benefits that affect their bottom line.
That said, not all organizations have a growth mindset that prioritizes learning and continuous development. HRCap partners with both global conglomerates and start-up organizations in using a data-driven approach to assess and implement talent intelligence strategies. Not all client organizations truly understand what the rising market trends look like nor which skills are needed to future-proof their workforce. Leaders must conduct proper skills gap analysis to have a clear oversight of which skills are missing internally to determine required skills training or external talent investment needs.
Companies must ensure their L&D programs are strategically aligned to their business values. We actively encourage executives and direct managers to promote L&D programs, given the importance of learning and reskilling in today’s fast-paced digital transformational landscape. Creating a collaborative culture can encourage more employees to actively take part in continuous L&D and even naturally collaborate, learn and reflect on the job for professional development.
A company’s success in the future depends not only on what we know today but on what we need to learn for the future. Only organizations that invest in learning can truly create a workforce that is future-proof and ready for the ever-changing digital landscape.
Sources: HRCap, LinkedIn, McKinsey & Company, Sitel Group, Recruiter.com, Gallup, Ottowa University, PwC, SharpenCX
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