If telling your CEO that it’s important to have happy employees is too touchy-feely for him or her, here are some great stats you can use to defend investing in learning and development trainings.
Ron Thomas, a principal at StrategyFocusedHR, recently provided some great stats on the scary failure rates of employees in TLNT, a website for the business of HR:
“According to Michael Watkins, author of “The First 90 Days: Critical Success Strategies for New Leaders at All Levels,” the break even point for mid-level managers is 6.2 months.
And according to ManagerSmarter.com:
- 22 percent of staff turnover occurs in the first 45 days of employment. (The Wynhurst Group)
- 46 percent of rookies wash out in their first 18 months. (Leadership IQ)
- Companies that leave on boarding (what we call on ramping) to chance experience failure rates in excess of 50 percent when it comes to retaining new talent. (Egon Zehnder International, 2007)
Ouch! What’s the cost to hire these people? What’s the cost of lost productivity when you need to find and train a replacement?
We’ve written about the need for management training and here’s more ammunition to get the investment in training you want and your organizations need.
Remember, CEOs want to see ROI, return on investment. In a recent study of dozens of Fortune 500 companies by Jack Phillips of the ROI Institute , only 8% of the CEOs measured how their investment in leadership development programs helped improve business performance.
It’s not easy to figure out what to measure but figure it out because 96% of the CEO’s want that measured. Could you measure sales performance? Customer service success? Repeat customers?
What’s the alternative to not figuring how to measure the success of your learning and development investment? HR will be considered a cost center and one of the first places to cut spending when times get tough or a company needs to show an improvement in its earnings. In other words, the boss doesn’t see that you’re helping to drive business performance but instead, placating employees or avoiding lawsuits. HR will be a necessity but not a department to invest and grow.