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Learning is Growing; Growth Quashes Turnover

A recent study found that 94% of U.S. employees would stay at a company longer if the company invested in helping them learn.  Employees who are learning, growing and feel challenged at work stay in their current workplaces longer… even when offered better positions, pay and benefits.  That’s because, for employees, agility fuels career growth and relevance. And what is agility if not constant learning?  Employees therefore value working at companies that are committed to ensuring everyone has the tools, career paths, and the skills to succeed.  Learning and growth opportunities are so important to U.S. employees because they see Learning and Development (L&D) as a way to:

1. Stay ahead of the curve in a fast-changing world. The pace of change in the workplace is accelerating, and employees know they need to keep up. Learning new skills helps them avoid being left behind.
2. Advance their careers. Many employees are looking to advance their careers, and learning new skills is essential for doing so. By providing learning opportunities, employers can help their employees develop the skills they need to move up the ladder.
3. Be more engaged and productive. Employees who are engaged and productive are more likely to stay with their company. Employees who feel more engaged and motivated are also more productive.
4. Improve their well-being. Learning new things can be mentally stimulating and rewarding, which has a positive impact on employees’ overall well-being.

In today’s fast-paced economy, learning and growth opportunities are essential for employers as well as employees. By providing learning opportunities, employers can attract and retain top talent, improve employee engagement and productivity, and boost their bottom line.  There are a multitude of companies now adding learning programs as part of their benefits package. 

Here are a few examples:

• Amazon offers a variety of training programs for its employees, including technical skills training, leadership development programs, and business courses. The company also offers tuition reimbursement for employees who want to further their education, and it is offered from the moment employees are hired.
• Google offers a comprehensive training program called Google Career Certificates. These certificates are designed to help people learn in-demand skills, such as data analytics, IT support, and UX design. Google also offers tuition reimbursement for employees who want to earn a degree.
• Microsoft offers a variety of training programs for its employees, including technical skills training, business courses, and leadership development programs. The company also offers tuition reimbursement for employees who want to further their education.
• IBM offers a variety of training programs for its employees, including technical skills training, leadership development programs, and business courses. The company also offers tuition reimbursement for employees who want to further their education.
• AT&T offers a variety of training programs for its employees, including technical skills training, leadership development programs, and business courses. The company also offers tuition reimbursement for employees who want to further their education.

And there are many other companies in the tech, retail, banking and management sectors offering learning and development benefits.  Apple, Facebook, Salesforce, Oracle, Walmart, Bank of America, GE, McKinsey, LinkedIn, and Adobe are just a few more companies offering learning and development opportunities for staff.  But it has spread beyond Fortune 500 companies.  According to a 2022 survey by the Society for Human Resource Management (SHRM), 70% of US companies offer some form of learning and development benefits to their employees. This includes formal training programs, tuition reimbursement, and on-the-job training.  And the percentage of companies offering such benefits has been on the rise in recent years not only to retain top talent, but also because of the increasing complexity of jobs and the need for employees to stay up-to-date on the latest skills.  Learning is a win-win for employers and employees alike.

The Big Disconnect:  Learning is Invaluable but Unavailable

However, when employers were asked if they are offering employees opportunities to learn and grow their skills at work, about nine out of ten (90%) employers said YES.  But when employees were asked the same question, half (50%) said NO.  This is what the University of Phoenix Career Institute’s Career Optimism Index revealed last year.  Their study assessed the state of American employees’ career trajectories.  

The annual study used to ask employees a series of questions regarding their career paths.  However, last year, the study creators started asking employers the same questions and discovered a major discrepancy between what employees felt and what their employers perceived on a number of issues.  One of those was opportunities for learning and growth.  And what they found is a big disconnect between perception and reality.  When asked about training opportunities, 89% of employers said they provided all employees with upskilling opportunities, compared to 51% of employees who said those opportunities were provided frequently.  There are a few reasons why US employers may think that they offer employees many opportunities for learning and development, but employees may not perceive that they are offered such opportunities.

First, there may be a different understanding of what constitutes learning and development. Employees may define learning and development as formal training programs, while employers may also include informal training, such as on-the-job training or mentorship, as well as opportunities to learn new skills through their work.

Another factor impacting perception is a lack of communication. Employers may not be communicating effectively with employees about the learning and development opportunities that are available. This could be due to a lack of awareness of the opportunities, a lack of time to communicate them, or a lack of trust between employers and employees.

Or there may simply be a mismatch between employee needs and what employers are offering. The learning and development opportunities that employers offer might not be aligned with the needs of their employees. This could be due to a lack of understanding of employee needs, a lack of resources to offer the desired opportunities, or a lack of flexibility in the way that the opportunities are offered.  Or those opportunities may be offered only to certain employees instead of the entire organization.

Lastly, there may be employee barriers to learning and development, such as lack of time, lack of support from their manager, or lack of confidence in their ability to learn new skills. These barriers can prevent employees from taking advantage of the learning and development opportunities that are available.

Whatever the reason, the findings underscore the fact that employers not only need to offer learning opportunities, but they also need to better understand what employees want and need when it comes to learning and growth. 

What are considered ‘Learning and Development’ (L&D) Opportunities?

The type of learning and development benefits that companies offer varies depending on the size of the company, the industry, and the job roles. However, some common benefits include:

1. Formal classroom training programs: These programs can be offered in-house or by a third-party vendor such as a certification program. They typically cover a specific topic or skill set.
2. Tuition reimbursement: This benefit allows employees to get reimbursed for the cost of taking courses or workshops at accredited institutions such as colleges.
3. On-the-job training: This is informal training that is provided by the employee’s supervisor or manager.
4. Mentorship programs: These programs match employees with experienced professionals who can provide guidance and support.
5. Coaching programs: These programs provide employees with personalized feedback and support to help them develop their skills.
6. Online courses:  These programs are typically offered by a third-party vendor covering a specific topic or skill set.   Courses might, for example, teach how to get more out of software programs.
7. Conferences and workshops:  These periodic programs are offered by organizations that specialize in continuing leaning education, such as the AICPA for attorneys, Bar Associations for attorneys, or the NAR for Realtors and Brokers.
8. Sabbaticals:  This benefit simply allows an employee to take a period of time away from work for personal or professional development.  Sabbaticals can be for one year or more and are typically unpaid, but it allows the employee to return to their job / salary at the end of the sabbatical.  Sabbaticals are often used for travel, research, or writing.

Currently, the average company spends about $1,250 per employee annually on learning and development.  Employees who receive training offered or provided by their employers are not only more likely to be promoted, they will also earn higher salaries throughout their careers, which improves their quality of life.  In turn, companies with strong training and development programs will have lower turnover rates and thus a more stable, steady and reliable workforce. 

Quote of the Week

“Investing in your employees’ development is an investment in your company’s future.” Jack Welch

© 2023, Keren Peters-Atkinson. All rights reserved.