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, "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, 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, 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, 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 in their roles.

• McKinsey finds 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, 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, 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.