“Sending staff on personal development programmes is fantastic, but it’s too expensive for a small to medium-sized company like ours.” Every week, several company owners make this sentence over and over again. Regrettably, the assertion is founded on a business fiction.
“Investing in personal development (facilitated learning programmes) is a cost.”
The fact is that investing in your workers’ growth is similar to investing in new computer hardware/software or facilities.
Take the time to check the arithmetic before you discard paying for staff development, whether it’s supplied by an internal learning & development department or an outside consultant. Consider the expense of the employee programmes that are being financed. Add back in savings that can be directly connected to the staff’s increased knowledge, skill set, attitude, and drive. I believe the end outcome will be a favourable return on investment (Return on Investment).
“How can I begin to calculate my Return on Investment for staff development?” leaders wonder. To begin, you must determine the cost of programmes such as those designed to strengthen the leadership abilities of current or newly promoted members of your leadership team. You might wish to enrol your employees in a programme that teaches them how to review their daily activities and then offer and implement time and cost-saving alternatives. Another aspect that might be improved is worker time management (personal productivity). You could also want to focus on customer service training or increasing their awareness and acceptance of today’s workplace diversity.
To calculate your return on investment, take into account the lower cost of recruiting and hiring new employees; the value added in performance from satisfied employees; the increased productivity from learning how to manage their time; and the value of growing your business as a result of improved customer service. The favourable influence on operational expenditures is a final point to examine.
Of course, it’s simple to say, “DO THE MATH,” but without a template to follow, it’s simply another task to add to your already overburdened schedule.