ROI on L&D - the stats
During a time of recession any spend needs to be carefully evaluated. However, improving the skills of your workforce is definitely a worthwhile investment, enabling employees to carry out existing tasks more effectively and to take on additional responsibility. Ultimately, a well-planned and well-executed L&D programme can go a long way towards organisations improving their overall productivity, competitiveness and ultimately their profitability.
Independent research carried out on behalf of Thales UK’s training services business, Thales Training & Consultancy by Loudhouse Research, suggests that the better an organisation performed in the past 18 months of the economic downturn, the more likely it is to have increased investment in L&D; those that performed considerably better than expected in the past 12 months had increased investment by 6.2%. Those that performed a lot worse had decreased investment on average by 15%.
This clearly demonstrates a relationship between L&D and business survival during difficult times. The recession has inevitably forced all businesses to aggressively reduce their overheads and ‘cut-the-fat’ within their organisations. But L&D has often proven to be a key resource to help businesses develop their workforce effectively in order to weather difficult times.
Staff training and development is an effective way to enhance your company’s in-house skills base and raise your game. By ensuring your workforce is equipped with the most-up-to-date skills, training and qualifications available, businesses can continue to meet customer needs now and be prepared to react quickly when the upturn arrives. Companies that invest in L&D will be well-placed to take advantage of opportunities, use new technology and expand into new markets.