Identify the Cost of Having ‘No Learning’ – comes from the Free Guide – Are You Struggling To Demonstrate The Return On Investment You Get From Your Training Providers?
You may be asked to put forward a case for training to justify the spend. This is a little like evaluating the training that has happened because ultimately your goal is to understand the return on investment.
An alternative way of understanding the return on investment is to look at the cost of not having the learning take place. According to a Gallup poll, one of the primary reasons that employees leave their jobs is for alternate career advancement opportunities. The Line Manager can influence at least 75% of the reasons for voluntary turnover, and contrary to popular belief, turnover isn’t always down to money.
So what is the cost of having no development?
Average UK resignation rate is 16% Source: HRdirector.com
Average UK salary is £26,000 Source: Wikipedia
Average UK cost to replace a worker is £30,000 Source: HR Review
This makes the cost for every 10 workers total to £300,000, assuming an average resignation rate and an average salary. Of course, learning alone cannot reduce this figure. With that said, the return on investment is very positive with a delegate rate of £250 to £500 per employee vs. the cost of replacement. Other costs will need to be included, such as Line Manager support time and Learner time to implement the learning. However, the return on investment is still very positive.
Identify the cost of having ‘no learning’ and use this to make the case for learning.