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Organisations See Learning Expenses In Employees As Investment

Organizations need to rethink learning and development so that it’s no more a once-in-a-while activity and instead become more of a continuous campaign

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More than 80 percent of organizations have some sort of structured Learning & Development program, while 38 percent of experts say that ‘Improving Employee Performance’ is the prime focus of their programs in 2018.

According to Mettl’s State of Workplace Learning and Development report, sales teams across industries tend to benefit most from these exercises with nearly 25 percent of the learning and development (L&D) budgets spent on training them.

The biggest challenge that confronts Indian organizations today is the rapid change in the skills which employees must possess to take full advantage of new technologies. Re-skilling will be required majorly in large-sized organizations. Large Companies will focus on ‘Re-skilling the workforce’, whereas, Small Companies will focus on ‘Improving employee performance’, reveals the survey conducted on more than 1500 L&D professionals.

Companies are increasingly looking at such spends as investments in human capital rather than expenses, with roughly half the organisations spending Rs 7,000 - 33,000 per employee annually. Average Learning & Development spends per employee increases with the size of the organization, with smaller ones with less than 1,000 employees spending Rs 16,350 per employee, compared with Rs 52,879 per employee in large organisations greater than 1,000. 

Overall, average L&D spend per employee is Rs 41,838 while the average spend per employee at the senior level of Rs 86,277 is three times that of entry-level employees of Rs 28,759. 

Organizations need to rethink learning and development so that it’s no more a once-in-a-while activity and instead become more of a continuous, ongoing campaign. One -third of professionals who participated in the survey mentioned that getting the employees involved in the learning process is one big challenge for them, while 19 percent of professionals stated ‘Identifying Training Needs’ as their challenge while designing their L&D Programs. Another challenge is the measuring of ROI of L&D programs.



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learning skills employees reskilling