How learning and development enables an organisation’s growth
Several factors have been driving the global workforce towards continual change. The evolution has largely been caused by the growing business competition, digital revolution, and complexities associated with both. Inevitably, the everpresent uncertainty, change in the type of required knowledge, and a diverse workforce comprising multiple generations have solidified the need for upskilling/reskilling.
Such a fast-paced and rapidly transforming business scenario demands an agile and everready workforce. Research has shown that the large market capitalization of most publicly listed companies is directly related to the company’s intangible assets i.e., skilled personnel, brilliant leaders, and their technical know-how. To keep up with the global economy, growing organizations must fare appropriately on all three fronts through a structured learning & development (L&D) program.
About 45% of the organizations possess the technologies they need to execute an effective L&D programme but lack the consistency to implement them. Capabilities without a plan or strategy are the equivalent of a battle half lost.
A learning & development programme facilitates the overall development of employees and aligns their skillset with the goals of the business. It does so in five ways that are critical to ensure the resilience & adaptability of the workforce with the changing times:
Talent attraction and retention
Earlier learning used to be focused on improving the productivity of business operations. Presently, it also contributes immensely to the engagement and sense of purpose of the employees. Work culture has transformed over the years from being with the same company for years to personnel being interested only as long as they’re feeling valued and growing in their careers. ‘Opportunities for L&D’ happens to be the most cited reason for joining a company, whereas a ‘lack of L&D’ is often the cause for leaving a company.
Development of the workforce’s capabilities
A progressive investment in L&D initiatives allows the human capital to keep adding value. A common occurrence
today is the short shelf life of knowledge which means all personnel needs to be updated and imparted with the latest knowhow through L&D initiatives. Another important statistic from the Lorman survey revealed that 74% of employees felt they weren’t reaching their full potential at work due to lack of development opportunities.
Organizations that have invested in creating the next generation of leaders have always reaped outstanding benefits. Companies investing in the development of next-generation leaders outperform the others on EBITDA (earnings before interest, taxes, depreciation, and amortization) by as much as 2 times. Also, companies that invest in grooming future leaders are up to twice as likely to achieve their performance targets.
Fostering a value-centric culture
As growing organizations foray into international waters, a diverse and remote workforce has become the norm. During such phases, L&D programs help foster a value-based culture and a sense of belongingness in the organization. Millennials and Generation Z are displaying an increased affinity for sustainably growing organizations that contribute to the welfare of society through a framework guided by values.
Establishment of the brand as a sought-after employer
The brand voice of the employer conveys a lot about its image in the market. An organization with a powerful presence, strong financials, and a commanding position in the industry is always perceived as the winner. Investing in L&D not only boosts the brand name but also its reputation as a popular employer. Growing organizations that are relatively older
are facing a shrinking workforce due to more retirements and a diminishing talent pool. To keep up, a brand must have a lucrative value proposition to communicate the brand strength and remain competitive in the market. 76% of the employees who communicated with Lorman said that a company seemed more appealing if it offered skill-training to its staff.
Employee motivation & engagement
Employees are best engaged when given opportunities to learn new competencies, develop professionally, and grow. Research has indicated that the presence of opportunities has a direct positive impact on the employees’ happiness. When such upskilled employees are presented with a challenge, they are highly likely to display more enthusiasm and energy in solving the problem. L&D programs contribute immensely to the satisfaction levels among employees, thus also circling back to increased retention.
For many organizations, L&D programs serve as a conduit to align employees with the business strategy but the focus on morale is sometimes lost. For instance, organizations focused on bringing about digital transformation are more concerned about making employees the facilitators of the process, rather than the drivers of growth post the transformation. At times, the L&D programs are not explicitly connected with the business strategy due to budget constraints or obsolete approaches to the learning aspect of the business.
Business leaders of growing organizations must therefore strive to achieve a balance between upskilling and employee happiness.