Return of Investment (ROI) for Learning & Development

Learning and development programs for your employees are one of the most valuable investments your company can make. Companies reap several benefits from implementing well thought out employee training and development strategies.

Of course, there is financial investment in developing these programs, aside from the opportunity cost and man-hours incurred when employees attend training sessions during the normal course of business. Most companies, however, find that providing learning and development opportunities to their employees is worth the cost, time and effort. The Return on Investment (ROI) from those programs is really a no brainer.

So why should you invest on employee learning and development? What are the benefits?

1.  Enhances Talent Acquisition and Retention

Hiring and retention of great talents create a major expense and pose a big challenge to employers, but this can be addressed through career development. Showing job applicants their possible career path and growth at the onset of hiring will entice them to join your company. Offering learning and development programs within their employment contract will establish an employee’s sense of value within the company. It will foster loyalty and retain your top talents. Your employee turnover and recruitment costs may go down because of better staff retention.

2. Increases Employee Performance and Productivity 

Employees who receive proper training are more capable of performing their job. They gain greater understanding of their responsibilities within their role and build their confidence. Employee productivity and efficiency usually increase after a company implements the necessary training courses. Competent employees will likewise help your company hold a position as a leader and strong competitor within the industry. That could mean bigger market share for your company.

3Promotes Workplace Engagement and High Employee Morale

Learning and development initiatives can prevent boredom and idleness in the workplace which prevent feelings of dissatisfaction among employees. Having regular training programs can energize your people, break the monotony of everyday routine, and allow them to interact with others. 

With these programs, employees can be creative, empowered, and remain engaged while the company saves and earns more money. As they become more proficient, your company’s overall performance, innovation, output and sales are most likely to increase, and that’s always good for the bottom line.

4.  Allows Upward Mobility for Promotable Employees

Most employees don’t want to get stuck doing the same job in your company for decades, so they need to equip themselves with new skills to move up the corporate ladder. Employers need to invest in learning and development for their workforce. It can help establish a pool of exceptional, loyal and engaged employees who are ready for upward mobility. Promoting from within is a good tool for employee retention. It will also minimize your cost in hiring managerial candidates from external source.

5. Boosts Employer Brand and Reputation

Investing in continuous learning boosts your reputation as an employer who cares. Adopting a strong and successful learning strategy helps to develop your employer brand and makes your company a prime consideration for fresh graduates and employees in the mid-career stage.

Based on the foregoing benefits, I can readily say that providing your employees with continuous learning and development opportunities will yield a high ROI. Employers must start looking at their employees as investment rather than cost. Training them will pay substantial dividends in the future.

For employers who want to ensure their investment and are scared of attrition, they must invest first in their employees. Instead of asking , “What happens if we train our employees and then they leave?”, they should ask, “What if we don’t train them and they stay?”

About the author

Lita Buendia-Aguila
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