Why are Companies Finally Investing in Talent Development?
For years organizations, both large and small, have neglected the importance of developing their employees, believing that their funds could be allocated towards more important things. Finally, in 2018, companies are beginning to realize the importance of investing in talent for overall performance and retention purposes.
Why has it taken so long?
In a recent article in Forbes, Kristy McCann acknowledges the effects that our consumerist society has had, not only on everyday life, but also on the way we approach work. When something doesn't work we don't put any time or energy into fixing it. Instead we simply throw it out and replace it as soon as possible.
The same goes for work. These days people view jobs as dispensable. If an employee is unhappy in their current situation they tend to just quit and look for a new job instead of trying to make it better.
The same approach is taken from employers as well. Instead of using professional development to inspire and train employees, managers are quick to replace people and search for new talent.
Those who invest in training, coaching and development for their employees see on average a 50% return on investment. Those who don't tend to have a higher turnover rate and end up spending way more money hiring new employees.
Who is investing?
Top companies are realizing that by not spending money on talent development, they are actually losing more - as opposed to saving. Here is a list of some companies that are setting an example for talent development:
- Boeing: The world's largest aerospace company has announced that they will be investing $100 million in their new workforce development programs. These programs are designed to make learning more accessible to employees at all levels of the company.
- Spotify: The music giant takes L&D very seriously and has released the "six instruments" they use to create a continuous learning mindset and enable fast learning within their organization.
- PG&E: One of the largest energy companies in the US was recognized as having one of the top-10 training organizations in the world by Training Magazine. PG&E was recognized based on ther financial investment in employee development, the scope of their programs and the close proximity in which their efforts were linked to their business goals.
What does this mean for professional development?
Top companies are stepping up. They are realizing that in order to make more money they need to invest in their talent. The number of training initiatives offered by companies have grown substantially in recent years and is expected to continue on a steady rise.