INFOGRAPHIC: Stats and Facts on Employee Training
In 2017, participation in work-related training in Australia dropped to 28.2% among employed persons, down from 34.5% in 2013, according to the Australian Bureau of Statistics. Scarcity of time and financial resources were the main reasons for non-participation.
And depending on the size of the business, the smaller the company is, the less likely will their employees receive any form of training (see chart below).
As a small business owner myself (we have a small shop employing 10 people), it would be difficult to send staff to training courses when it would lead to loss of productivity, plus the additional costs of the actual training. Training would very easily seem to be secondary when survival is your day-to-day concern.
A quick look at these numbers from various studies all over the world (mostly US) might change our minds about employee training and development:
According to a study across 2,500 US companies by the American Society of Training and Development, those that invested in comprehensive employee training enjoyed 24% higher profit margins and generated 218% higher income per employee, than those who did not. And if training is done haphazardly, or none at all, US$13,500 per employee is lost (due productivity losses and employee turnover) every year due to poor training. Those numbers are too staggering to ignore for any business, big or small.
Effect on retention
In addition, poor training results to a 40% employee turnover among first year hires while 7 out of 10 employees say that opportunities for training influence their decision to stay. According to the 2017 Retention Report by Work Institute, the actual cost of turnover is roughly 33% of the employee's annual salary. Just losing three people in your payroll would mean losing one person's annual salary solely due to employee turnover.
To get an idea what it would entail to invest in training, a typical training program would involve about 34 hours --- at an average cost of US$1,273 --- per employee, per year. 45% of all training hours was conducted through online software.
According to a recent study, 70% of training programs have already invested in online learning management systems, which allows self-pacing and self-training by the trainee. In fact, within a 3-year span, the global Learning Management System (LMS) market grew by more than 70%, from US$2.55 billion in 2013 to US$4.4 billion in 2016. More and more companies are turning to e-learning for the vast number of benefits it provides, such as:
- Time-saving. Up to 60% of time spent on training can be saved by automation and self-training through LMS.
- Training retention. Up to 5x more material is learned by their participants without increasing the time spent on training, according to IBM.
- Cost-savings. IBM reportedly saved US$200 million when it shifted to e-learning
- Increased productivity. It has been reported that every dollar invested in online training will yield a $30 return in productivity.
- Eco-friendliness. According to a study by the British Open University, 90% less energy is consumed and 85% less CO2 emissions with e-learning, as compared to traditional, face-to-face training.
These are overwhelming evidence that training --- and e-learning in particular --- presents actual significant cost-savings and revenue-generating potential. For the small business owner, consider it an investment within your investment. To help you get started, you can check out our training systems available here at Optimum Direct.
About the author:
Dondi Alentajan is the Principal Consultant for Alentajan Business Consulting and serves as a consultant for Optimum Direct, a web portal for the best HR tools and software for small business. He was recognised as a “Marketing Maverick” by Business World in 2012, and he headed the Marketing Team nominated “Best Marketing Company” by the PMA for two consecutive years (2010 & 2011). His primary work mission is to help companies and their customers be happier together.