Research: Corporate Training and its Effect on the Individual and the CorporationEvoLLLution NewsWire
We all know today’s society demands that individuals continue their education during the course of their career in order to achieve maximum success. We know this because we see society changing, we hear anecdotes about unemployment and under employment and we work with corporations trying to find a way to educate their employees. At the EvoLLLution, we always strive to go further, give more information and get to the bottom of what’s happening.
So, we commissioned a third-party research firm to conduct a survey of employers across North America and get their opinions on why professional development matters and how they are working with schools to provide corporate training opportunities. We have detailed the results in a research paper released today, called Lifelong Education and Labor Market Needs. The bottom line is that professional development and corporate training benefits the employee as well as the corporation—and we have the numbers to prove it.
70% of employers believe that employees need continuous learning simply to keep up with the demands of their current jobs and 96% of employers say ongoing education improves job performance. Therefore, as a means of rewarding employees for their educational pursuits, 87% of employers say additional education positively impacts pay raises and 78% say it positively impacts promotions and advancement—in many cases directly. You can learn more by viewing this infographic, based on the research results.
Beyond increasing productivity, ongoing education helps employees ascend the corporate ladder, allowing corporations to significantly reduce their bottom line by avoiding the high costs associated with outside hires. This is because hiring staff from outside the organization can significantly increase costs for employers. Recruiting and training are costly initiatives that can be avoided through internal promotions, but failure is associated with an even higher price tag for the corporation. Within four years, 64% of externally hired executives will fail at their new jobs, but 62% of internally promoted executives will still be with the company. For executive positions, the costs associated with turnover can be as high as 24 times the base salary.
Rather than searching for external hires with a high potential for failure, a company can save time and money by fostering a strong corporate training program that bridges the gaps between positions.
Of course, each industry has slightly different education needs when it comes to corporate training. Regulations and credentials drive learning in the healthcare industry. The technology sector requires just-in-time learning for employees to stay on top of the industry’s rapid changes, while companies in the business sector present more varied needs. Regardless of the industry, systems are in place for employees to get ahead in the workplace, but they must take advantage of the learning opportunities in order to succeed.
Corporate training presents a means for corporations to operate more efficiently and employees to advance. To learn more about why professional development and corporate training are so important for the success of the individual, the company and the society, please download the full report.
Author Perspective: Corporate Education