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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?

Why identify the cost of having ‘No Learning’? You may have to put forward a case for training to justify the spend. This is a little like evaluating the training that has happened. 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 no learning taking 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). Meanwhile, the average salary in the UK is £26,000    (Source: Wikipedia). And 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. Especially 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.

Screenshot of an Article in The Telegraph - Replacing staff costs. Identify the Cost of Having ‘No Learning’

Replacing staff costs


Identify the cost of having ‘no learning’ and use this to make the case for learning.

Darren A. Smith

About Darren A. Smith

Darren has been working in the world of UK Supermarkets & Suppliers for over 25 years. He began his career as a buyer at big 4 UK supermarkets and after 13 years he decided to leave to set-up Making Business Matter because he wanted to help suppliers and supermarkets to work better together.

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