Learning and Development Outlook 2005: Moving Beyond the Plateau – Time to Leverage Learning Investment

In the 2005 Learning and Development Outlook, we consider a broad concept of learning that encompasses facets of organizational learning that go beyond employee training. Although learning professionals recognize the importance of informal learning as a means to enhance employee knowledge and skills, survey respondents maintain that two-thirds of all employee learning occurs through formal learning methods (such as, training courses and programs). In several key areas, little or no change appears in the level or kinds of investments being made from earlier studies. The average number of dollars invested per employee rose to $914, but the percentage of payroll invested in training continues relatively unchanged at 1.75 per cent. Over half the respondents predicted that their training budgets would stay the same. The question then arises: Has a plateau been reached in the money that Canadian organizations and their leaders are willing to invest in formal employee training and development?

Respondents classified the learning level of their organization. High-learning organizations outperform medium- and low-learning organizations on several critical indicators. Some of these areas include investment dollars, training time, informal training methods, retention of talent, and employee satisfaction levels, as well as greater productivity and profitability. Although a correlation analysis reveals that the amount of training investment does not directly relate to organizational performance, statistically significant associations exist between organizational learning and organizational performance. Thus, the links between learning and performance appear to be very complex. Alas, even as many learning professionals ponder the elaborate nature of learning, many organizations are applying simplistic measures, such as counting the dollars spent or the number of courses offered when rationalizing the importance of training. Unfortunately, by doing so, the potential value of learning to organizational capacity and effectiveness is diminished.

The new business realities of global competition demand that organizations have the levels of innovation and creativity necessary to be successful. The imperative for employees to learn will be a decisive factor in the future viability, vitality and sustainability of their organizations. Canadian organizations that are committed to organizational learning and the integration of learning into their operations, values and culture will be better able to adapt to new and growing competitive and environmental conditions. They will become the leaders in their industries and champions of Canadian organizational life.