Why poor workplace training could be costing you business

New report finds that companies with innovative learning and development programmes are increasing turnover and retaining staff longer

(Getty Images)

The UK's top performing businesses are putting employee learning and development (L&D) at the heart of their strategy, an in depth survey and analysis of more than 100 companies reveals.

The UK L&D Report 2018 shows that even in the current economic climate, 94 per cent of the best performers surveyed say learning and development is critical to success. As a result they enjoy the lowest turnover of staff.

Of the companies spending above the national average of £300 per employee on training, none have a retention rate of less than six months. They are also twice as likely to say their employees are highly satisfied.

The groundbreaking report, which is published by findcourses.co.uk and is free to download, finds a strong learning culture within a business keeps employees competitive.

Almost two-thirds of companies with increased turnover in the past year rate leadership and management development as their top priority. Those with decreased turnover are twice as likely to say their staff members do not prioritise learning. Failure not to put skills and learning at the core is hindering competitiveness and a factor in high employee turnover.

As revenues drop, the most common ­– and costly – pitfall is blaming poor corporate learning on low budgets, with many companies unsure how to prove the business value of investing in L&D.

If you cannot measure the return on investment of training, the report explains, then it's going to be far tougher to communicate to senior executives the value that learning and development brings.

The findings will make compelling reading for HR and training professionals, board members and entrepreneurs of all business sizes, helping them to benchmark employees' development. It features interviews with organisations recognised for innovative L&D practices, including Getty Images, Johnson & Johnson and Pepper Financial Services.

The 53-page report also offers practical advice, including details on how to spend apprenticeship budgets wisely. While 2 per cent of companies have to pay the apprenticeship levy, for smaller businesses, apprenticeships are a positive way to close the skills gap, even among existing staff keen to progress within.

The report profiles businesses embracing new ideas, practices and technological innovation. Virtual reality, for example, is transforming learning in organisations as diverse as McDonald's and Thames Water, and in the case of the Met Office, is giving it the opportunity to replicate experiential learning activity in the classroom environment.

With clear evidence of the need to innovate in L&D, the report has thrown down the gauntlet to HR departments and boards to ensure their employees – and themselves – have the right skills to progress and drive their organisation forward to compete both locally and on the world stage.

How does your company's workplace learning strategy compare? Download the report for free