Research Summary: Prior experience can be an important part of what makes a good employee, but the value of employee training and development cannot be understated. Often, some of the best employees are the ones who feel as though they’ve been trained properly and have the opportunity to advance their careers.
To learn more about why employee training and development is so important, we’ve gathered an extensive list of the data and trends that will outline all of the pros. According to our extensive research:
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45% of workers would stay at a company longer if it invested in their learning and development
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92% of employees say employee training programs have a positive effect on their engagement when well-planned.
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Companies with comprehensive training programs have a 24% higher profit margin.
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76% of employees are looking for opportunities to expand their careers.
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59% of employees report no formal workplace training.
For further analysis, we broke down the data in the following ways: Impact on Retention | Popular Programs | Best Practices | Employee Opinions | Benefits
Employee Interest in Training and Development
Employee training and development isn’t just beneficial for employers, as many employees actually long for the opportunity. Here are some examples of how employees view the subject:
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87% of Millennials say that professional development and career growth are important to them.
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74% of workers say that a lack of employee development opportunities is preventing them from reaching their full potential.
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58% of employees say professional development contributes to their job satisfaction.
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68% of employees say training and development are the most important company policy
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74% of workers are willing to learn new skills or retrain to stay employable.
Training and Development’s Impact on Retention
Improved training and development have been proven to reduce retention, which is hugely beneficial for employers and employees. To find out more about how training and development impact retention, here are some key facts:
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Businesses with strong learning cultures have an increased retention rate of 30-50%.
That means companies that foster learning cultures stand to lose only half the number of employees when compared to companies that don’t. And, considering the fact that the average cost of replacing an employee is $1,500, 50% better retention can really make a difference financially.
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40% of employees won’t receive training and will leave their positions within one year.
In total, 31% of 1,000 employees quit in their first six months. This problem is exacerbated by a lack of training, which is the main reason why most employees leave.
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94% of employees won’t quit if they’re offered training and development opportunities.
Of the employees who would consider quitting due to a lack of training, the vast majority would remain loyal to the company if offered new training and development opportunities. This points out how it’s never too late for companies to change course and offer new programs.
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Retention rates are 34% higher among organizations that offer employee development opportunities.
Further, the employees who stay are also 15% more engaged on average. Altogether reducing turnover costs and improves productivity.
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34% of employees say career development opportunities motivated them to leave their previous position.
One in three employees has left their previous job due to a lack of career development opportunities or because another company offered better opportunities.
Popular Employee Training Programs
If you’re an employer who’s interested in implementing an employee training program, it’s important to note that you don’t have to start from scratch. Here are some key facts about the most popular employee training programs, so you can identify what would be best for your situation:
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91% of employees want personalized training.
Implementing personalized training might seem complicated at first, but there are methods any company can follow. The three key components of personalized training are learner profiles, customized learning paths, and proficiency-based progress.
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93% of employees want easy-to-complete training.
What is easy-to-complete training? Well, consider these tips for making your training faster and more efficient for new employees:
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Set expectations prior to training
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Offer microlearning initiatives
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Offer e-learning programs
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Have new employees shadow experienced ones
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Hold one-on-one meetings
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Offer video training
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42% of fortune 500 companies use LMS.
LMS, or learning management system, is a software application or internet-based technology used to plan, perform and access a learning process. These systems are incredibly valuable for e-learning.
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89% of employees want training available anywhere and anytime they need it to do their job.
Having on-demand training is important to the vast majority of employees, as 85% also want to be able to choose training times that fit their schedule.
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25% of workers have done independent training outside of work.
One in four employees has decided to take a lack of training into their own hands by training themselves independently outside of their jobs.
Training and Development Practices
Training and development can be made easier by understanding and implementing common and effective practices. Here are some key examples of these practices:
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89% of HR leaders agree that constant employee feedback and training are essential.
Nearly nine in ten HR leaders believe that training is more than just a one-time event. Instead, training is most effective when it’s an ongoing process of learning and communication.
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Employees are 67% more likely to recall info from videos rather than text alone.
Videos are far more effective for training and recall than pamphlets or other readable documents. For example, employees are 75% more likely to simply watch a video rather than read a text.
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On average, employees only learn 10% of their abilities through formal training.
More significantly, 70% of their abilities come from on-the-job experience, while 20% comes from interacting with co-workers.
Where Employees Gain Their Abilities
Method Share of total ability On-the-job experience 70% Interacting with co-workers 20% Formal training 10%
Employee Opinions on Training and Development
Understanding employee preferences is an important part of creating an effective training program or method. Here are some of the most crucial employee opinions on the subject:
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68% of employees prefer to learn and train on the job.
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59% of employees believe that more training improves their performance.
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76% of Millennials say professional development is essential for a strong company culture.
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Only 29% of employees are very satisfied with current career advancement opportunities.
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41% of employees think that boring training programs can hinder learning.
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When choosing a career, 55% of employees consider career growth and opportunities more important than salary.
Benefits of Training and Development
There are many benefits to effective training and development. Luckily, we’ve laid out a comprehensive list of some of the most important benefits:
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Companies with comprehensive training programs have 218% higher income per employee.
These companies also experience 24% higher profit margins, which is the difference between making $50,000 in profits vs $62,000.
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Companies with engaged employees are 17% more productive than those without.
Companies with engaged employees are also 21% more productive, which is equivalent to making $60,500 in profit instead of $50,000.
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84% of employees at top-performing companies receive all the professional training they need.
That’s compared to only 16% of employees in the lowest-performing companies who receive all the professional training they need.
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Participants in leadership training increased their learning capacity by 25% and performance by 20%.
Leadership training is a crucial part of building skills and confidence in employees, which in turn, will lead them to be more adaptable and productive.
The Employee Training Industry
Because employee training is so important, it’s no surprise that there’s an entire industry built around it. Here are some key trends and facts about the employee training industry:
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The global corporate training industry is worth $345.56 billion.
And the industry is growing at a healthy rate, as it’s expected to reach $493.32 billion by 2028 at a CAGR of 8.90%.
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US Corporate training expenditure reached over $10 billion in 2022.
Training costs companies an estimated $1,252 per employee, which can add up over time. This is especially true for companies with high turnover rates.
Employee Training And Development FAQ
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What percentage of employees are trained?
Only 41% of all US employees are formally trained. Statistics show that 52% of companies provide one week or less of training, while a considerable six in ten employees say they’ve never been formally trained.
Either way, there is a clear and worrying trend that employers aren’t prioritizing training and development for employees, causing higher rates of turnover and reduced productivity.
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How effective is employee training?
Employee training is highly effective when done right. When employees receive the training they need, their companies are 17% more productive and make 218% more profit per employee.
This is because employees will understand tasks better, form more effective relationships with co-workers, make less mistakes, and experience less stress.
In turn, all of these positive effects also lead companies that focus on training and development to have 34% higher retention rates.
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Does training increase employee engagement?
Yes, training increases employee engagement. More specifically, 92% of employees say employee training programs have a positive effect on their engagement when well-planned. And, given that engagement increases workplace productivity by an average of 21%, it’s no doubt valuable.
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What factors are necessary for good employee training and development?
There are several factors that are necessary for good employee training and development, including easy-to-complete training and ongoing training opportunities. In more detail, here is a comprehensive list of important factors:
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An effective management team to tweak and oversee training programs
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Personalized needs assessments for employees
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Aligning training to company goals
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Tracking the most insightful training metrics (e.g., quantity, quality, time, cost and effectiveness)
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Leadership training and encouragement offered by company leaders
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Modern and relevant training content
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Creative and engaging ideas that draw employees in
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Using mediums and reinforcements that increase learning retention
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What are examples of employee development?
Training programs for employees are the most common example of employee development, but there are many more. Here are some other examples of employee development:
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Leadership training
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Certification programs
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Technical skills training
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Shadowing co-workers
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Teamwork training
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Employer-subsidized degrees
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On-the-job training
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On-demand training opportunities
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Conclusion
Employee training and development is a crucial part of fostering a productive and effective work environment. However, 59% of employees report no formal workplace training.
These employees and employers are missing out, as companies who train employees properly see 218% more profit per employee and have a 24% higher profit margin. Additionally, these companies also have more engaged employees, allowing them to experience 17% more productivity on average.
To reap the benefits of proper training, it’s vital that employers do their research so they can implement effective, easy-to-learn, and ongoing training programs.
References
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PeopleKeep – Why your organization needs to invest in employee development
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Gallup – Millennials Want Jobs to Be Development Opportunities
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Findcourses – Why Aren’t Employees Engaged in Professional Development?
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HBR – 3 Ways to Boost Retention Through Professional Development
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Rallyware – 94% of Employees Wouldn’t Quit if the Employee Learning Opportunities Were Right
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HRDive – Career development is a key part of retention, poll suggests
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Scribe – How to Use Scribe to Nurture Peer-to-Peer, Informal Learning at Work
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Survey Monkey – Why employees crave more training and how employers aren’t delivering it
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Forbes – New Survey: Nearly Half Of Workers Unsatisfied With Learning And Development Programs
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eduME – What is the Average Cost of Training a New Employee?
Author
Jack Flynn
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
