> For the complete documentation index, see [llms.txt](https://usdr.gitbook.io/talent-toolkit/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://usdr.gitbook.io/talent-toolkit/learning-and-development/return-on-learning-and-development-investments.md). # Return on Learning and Development Investments Investing in learning and development requires significant resources but yields substantial returns. ## Retention Learning & Development is one of the most prevalent and effective ways to impact retention across an organization. * In LinkedIn’s [2024 Workplace Learning Report](https://learning.linkedin.com/resources/workplace-learning-report), "90% of organizations are concerned about employee retention, and **providing learning opportunities is the No. 1 retention strategy**." * In this report, data suggested that **70%** of employees would leave their current job to go to a company that invested in their continued education through learning and development. * According to a [Deloitte study](https://www2.deloitte.com/us/en/insights/deloitte-review/issue-16/employee-engagement-strategies.html), organizations with strong learning cultures saw retention rates increase 30-50%. ## Performance For digital talent in particular, research shows the importance of continuous up-skilling opportunities as technology constantly evolves. * According to [ATD](https://www.td.org/education-courses/learning-culture), high performers are nearly 2 times more likely to say their L\&D helps them meet organizational goals. * Organizations with high performing teams are [92% more likely to be innovative](https://elearningindustry.com/the-power-of-learning-and-development-for-innovation#:~:text=Organizations%20with%20high%20performing%20learning,an%20environment%20that%20fosters%20creativity.), because they support a growth mindset and provide an environment that fosters and relies on creativity and analytical approaches to resolve problems. ## Engagement Employees who benefit from L\&D opportunities are known to acquire new skills, knowledge, and experiences and have a strong sense of [fulfillment and purpose](https://www.linkedin.com/pulse/from-job-career-how-development-opportunities-impact/) in their roles. * [McKinsey finds](https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/cracking-the-code-on-digital-talent#:~:text=Our%20findings%20suggest%20that%20digital,their%20own%20development%20and%20advancement.) that digital talent heavily values working at organizations that fully embed learning into every aspect of their culture and encourage employees to invest in their own development and advancement. * Professional development can positively impact a wide range of [engagement](https://online.wharton.upenn.edu/blog/how-professional-development-boosts-employee-engagement/), including: * **Motivation and productivity:** Gaining new skills and knowledge can boost employees' confidence and motivation, enabling them to tackle new challenges and enhance their performance. * **Innovation:** As employees expand their knowledge and acquire new skills, they can bring innovative ideas and solutions to an organization. * **Collaboration:** Opportunities for professional development can unite employees, fostering teamwork and the sharing of ideas. ## How Employee Development Leads to Growth The more investment an [organization makes in its employees](https://www.investopedia.com/terms/h/humancapital.asp#:~:text=Human%20capital%20is%20perceived%20to,productivity%20and%20success%20become%20higher.), the more likely its productivity and success become higher. Viewed through the lens of learning and development, there are a few key ways to demonstrate a continuous investment in human capital: * **Creating a formalized learning and development function** which specifically serves the needs of the organization and its employees and helps foster an enduring learning culture. * **Creating clear learning and development goals** that align with its organizational mission and the needs of the various divisions. * **Creating consistent learning opportunities** that help to fill skill, leadership, and capability gaps.
Graphic that represents the cyclical process of growth, including performance management, organizational learning, individual learning, and leadership investment