Lack of training costing the economy billions

Workplace training has plenty of benefits for both the individual and the organisation. What may not be as obvious though is the effect a lack of training is having on the economy.

According to Richard McAllister, workplace analyst and managing director of Scalabl, a lack of workplace training programs is costing the Australian economy $35.5 billion each year.

The decline in learning programs is due to employees being too busy with workloads and deadlines, said Mr McAllister.

“Our accelerated work environment is driving lots of work in progress, multiple deadlines and overwhelming us.”

“We’re seeing this on a regular basis. People are unable to learn in the workplace because they simply don’t have time, and it’s a very common pain point which needs to be addressed by businesses and HR,” Mr McAllister said.

“Also, at the end of a demanding workday, many people just don’t have the energy or mindset to take on extra learning and development. As a result, this ‘busy-ness’ means many people don’t have the time or mental capacity for learning and development, and this is hurting both businesses and employees.”

While it may be hard to find the time for training initiatives, businesses can see improved efficiency if implemented. A study by the Association for Talent Development revealed that companies that invest in training have 24 per cent higher profits than those who don’t.

“Ultimately, investing in employee development is vital to success no matter the industry or company size, and this also applies to businesses around the world,” Mr McAllister explained.

“It drives the bottom line for businesses, and it also provides a major benefit to employees who feel more engaged and empowered in the workplace. The people and companies that learn the fastest win in this amplified pace of change.”

Mr McAllister provided five tips for improving learning in the workplace:

1. Develop a plan when people are most receptive to a future state – This is often at the start of a new year, or a new role or project. Employees can leverage this mental space to get clarity on what they can learn to develop their skills. Learning can also be a mixture of formal training, podcasts, webinars, online master classes.
2. Follow through – Ensure that any training and development is not just a one-off exercise and is applied in practice on a regular basis so that it is not simply forgotten within weeks. Regular leadership support check-ins can be established monthly and quarterly to show progress.
3. Put your hand up – Employees need to have the confidence, or be given it, to outline what they believe will be beneficial, with the caveat that it produces tangible benefits to the business.
4. Be disciplined – Stick with the learning and development programs and make sure they have a high priority attached. Create and set hours or days for learning and only break this if a critical or higher priority task arises.
5. Encourage collaboration – Create opportunities for employees to learn from and with each other and create teams if they are learning similar skills. This could include team-based learning projects, peer-to-peer mentoring, or cross-functional training initiatives.

Mr McAllister continued: “It’s also important to remember that simply holding a one-off training session is pointless if there is no follow-up application of that training.”

“Studies have shown that 80 per cent of training is forgotten after one week, so if you’re doing these one-off sessions, you’re basically paying for disengagement.”

He added: “This training and knowledge needs to be applied on a regular basis and in a practical way; otherwise, it’s just a waste of time and money. Organisations need to foster a culture of continued learning, encouraging small mistakes in order to keep getting better and pushing the boundaries.”