Training costs are spiraling out of control, and you’re not getting your money’s worth with today’s current methods of training. On average, companies spend $1,067 on formal training per employee per year. And, in total, U.S. Businesses invest $125 billion per year in employee learning and training.(ASTD) This is a loss of billions of dollars in training efforts.
Employees aren’t applying what they learn in training due to poor onboarding. Studies show that the success of onboarding can accurately predict a person’s longevity. Unsuccessful onboarding results in higher turnover rates.
New employees are 69% more likely to stay longer than 3 years if they experience well-structured onboarding. (Aberdeen Group)
Converting just 50% of formal learning to informal learning you will save $533 per employee per year. Based on a 500-person company, that is $266,500 a year. If company with unsuccessful onboarding hires 50 new employees a year, 12 of these employees will leave before their one-year anniversary – costing $128,772 to refill all of these positions. With successful onboarding, and relying on informal training methods, you could potentially cut this number in half saving you $64,386.
That’s a lot of money and people to save. What are you doing to ensure you are being successful with your training and onboarding?