Why Learning and Development Could Be the Next Best Investment
Although assets are constantly acquired by companies, a company’s workers are always capable of the most. Despite this, reinvestment into labor often yields extremely poor return on investment (ROI) measuring Learning and Development projects. But what are the main obstacles? Time has shown inefficient and ineffective training is the main culprit.
The traditional option for companies is to fund in-person seminars for employees to attend. But usually, these training courses are extremely costly between the costs to preparers and accommodation costs like transportation, hotels, and venues. In total, around $40,000 is spent on a training session, averaging to just over $1,000 per worker. Furthermore, these trainings do not prove to be effective. 25% forget the content immediately, and 24% and 21% see the training as irrelevant and obsolete respectively.
As technology advances, online training has gained some favor. Considering the virtual nature, most accommodation expenses are mitigated or eliminated entirely. This brings the cost down to around $180 per worker for larger sites such as LinkedIn Learning. While this is more cost-effective, it suffers the same downfall as physical training in terms of efficacy. In the wake of COVID, which has seen more companies switching to virtual training, new competitors have arisen. Sites like Arist aim to not only benefit from the cost-effective virtual nature, but to improve upon content to make it more impactful upon employees.
Ultimately, the ways to train employees have advanced in tandem with today’s companies. Finding the best way to train will likely see the best results for companies across the board.