I just finished reading my bi-monthly issue of Training Magazine. It highlighted the top 125 company training programs in the country. Some insights I gathered:
- 1. Most employees want at least two hours of training per month. If the employee desire is roughly 24 hours of training per year and they earn $50,000 then you have to deliver that training, including their cost of attendance at roughly $50 per hour, or $1200 year or 2.4% of payroll…and as you will see, that’s on the lower end of the budget for great companies.
- Unfortunately, less than 80% of employees get two hours of training per month. Is it the time? The money? A philosophy that training is not needed to perform at peak levels? If you are super concerned about time or money then make sure the training produces results.
- Employees want training to learn new skills, grow in their career, and be more productive. Don’t you want that too? Everyone wins when you train well. I just read an interesting survey on Lifetime Learning done by Pew.The info from that could be yet an additional article.
- Employees continue to acknowledge feedback as the greatest engagement factor. Meaning training alone, without feedback, is wasted time and money.
- While employees have shorter and shorter attention spans and prefer shorter training sessions, studies show that training is more effective when longer in duration. I say make the training fit the need. Sometimes micro-learning is perfect. Others times a deep dive is required.
- The average training spend has increased by at least 10% per year over the last five years. Have you kept pace? As George Gilder reminds us, we are in a knowledge economy, no matter what job we do.
- Most award winning companies say their training budget as a percentage of payroll is between 2% and 4%. There are outlier companies such as Quicken Loans which devote 8.3% of its payroll budget to training. What percentage of payroll do you devote to training?
- The vast majority have tuition reimbursement plans.
- Great training is a mix. Some online, some just-in-time, mentoring, Kaizen groups, presenters, trainers, TED talks, etc. Training is only limited by a company’s creativity.
There’s the general landscape. No doubt half of all companies train better than the other half, 10% do a great job of it and 1% do a world class job. Where do you stand?
If you walk the training talk then brand that fact on your about page, your hiring page, during your interview process and then execute it on or during orientation and throughout their career. This will improve your ability to hire and retain productive employees.