ROIs of Learning & Development -V.1

Many industries put aside training initiatives due to different factors; budget, timeline, resource availability, commitment and so much more. Out of the many reasons, I believe most are attributed to the lack of identifying the right ROIs of learning and development. Here are the reasons why?

Throughout my two years in the learning and development industry at MindShift Consultants, I have identified the reluctance of many HR managers, heads of departments, and even owners of the companies to commit to training initiatives in their companies.

Of course, calculating learning and development ROI isn’t always straightforward and I get that. Most often than not, this process gets even more complicated with each client in each organization in each industry. Below are the top 3 ROIs I think each industry should look forward to measuring when factoring in learning and development initiatives.


Internal employee training is a strategic necessity that allows companies to earn and sustain higher profits

There might seem no direct link between training initiatives and profit as the latter takes effect in stages of the process and is cumulative rather than a one-time output. Studies show that companies that implemented especially in strength-based training led to a 14 – 29 % increase in profit. Source: Developing Employees’ Strengths Boosts Sales, Profit, and Engagement (

Productivity & Engagement

Arguably, engaged employees are more productive and lead organizations to higher levels of profitability. Over the years there have been studies that show a direct link that investing in learning and development is directly connected to increased levels of employee engagement. Companies like BP, IBM, Toyota, and Microsoft stay ahead of their competitors by transforming their learning and development and in return drastically improving employee engagement.

So what does that mean? It means you can drive employee engagement by providing learning and development opportunities. The level of participation is also a great indication of who is and is not engaged, which allows you to spot employees who could benefit from more engagement support to increase productivity.

Turnover & Retention

It’s not surprising, that retention is always a major focus for HR teams and business leaders. Besides the disruption of losing a good worker and the hard costs to recruit, hire and train a replacement, when a longtime employee leaves, institutional and customer knowledge walk out the door as well.

The upshot is that even a modest investment in keeping your talent can pay off in tangible and intangible ways.

A study of 34,000 respondents concluded that 75% of the causes of employee turnover are preventable. What does this mean? Learning and development opportunities are the most significant way you can strategically lower turnover rates and increase retention rates. When you invest in the skills and abilities of your employees, they’re more likely to be motivated, engaged, and productive in their work. And when you show motivated and engaged employees a clear path for advancement through career development and training, they’re more likely to stay with your company long-term.

Does identifying these ROIs seem like a smart start? We are open to exploring options.

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