The Importance Of Training And Development In Your Company

Milica Denić

Milica Denić

  2 min read

Find out why training is (and must be) a top priority in your organization. Why are more and more companies investing in training and development today? The reason is simple: training is a competitive advantage.

In 2017, companies spent $ 1,296 on training for each employee. This is an increase of 1.7% compared to 2016 when the average expenditure per employee was 1,273 dollars.

According to estimates, the global e-learning market will reach $325 by 2025. However, when it comes to the importance of training and development, the effects of hiring new employees must also be taken into consideration.

The costs associated with replacing employees are high! The costs related to the replacement of employees are significant (equal to 9 months salary). If a manager who earns $ 40,000 leaves your organization, the cost of hiring and training a new professional could reach up to $30,000.

It is not just about learning ... but learning the right skills. As we have already discussed above, companies must improve their ability to develop their workforce, to reduce the need to resort to external teams and limit the related hiring costs.

Today, given the current increase in automation and intelligent tools that perform work-related tasks, what matters most are the so-called 'soft skills'. These are highly transferable skills such as leadership, communication and collaboration, which are fundamental to guide companies towards success and exploit the opportunities offered by new technologies.

The 5 most important areas of training and development for managers, through e-learning software for companies.

1. How to develop soft skills

2. Identify new trends to anticipate future skills gaps

3. Understand the impact of technology

4. Continuous global training

5. Provide insights on internal skills gaps

According to a study conducted by IBM, an increase in skill levels related to business value translates into annual savings of $ 70,000 and a 10% increase in productivity when teams receive effective training.

Effective training can increase the motivation and satisfaction of the workforce, as employees feel more appreciated and able to grow/develop during their career. Furthermore, training and change are interconnected, because they allow organizations to respond to changes and adapt to an increasingly competitive (and constantly evolving) market.

How to maximize investment in training?

Effective training through e-learning translates into significant advantages for organizations: greater involvement of the workforce, better preservation of knowledge and increased efficiency. Register for free HERE and enjoy 7-day free trial on one of the most intuitive e-learning software currently!

Share this with: