The most important thing HR can give an employer is a company that wins in the marketplace. But what exactly are the learning and development strategies that help to do this?
As one of the core areas of human resource management (HRM), learning and development (L&D) plays a crucial role in a companies growth strategy. Over the years, a lot of thorough research on learning and development strategies and corporate learning has been done, such as the Pedagogical Analysis.
Out with the old, in with the new
Today, the business environment is continuing to be competitive and complex, and the digital revolution is reshaping the way companies adapt to the post-pandemic shifts in workplaces. Companies are increasing their learning and development budgets every year, with companies in the U.S. spending over $366 billion a year in 2018 already. Even in the year 2020 during the continuous COVID-19 pandemic, companies focussed heavily on virtual learning and employee wellbeing and retention. As a result, U.S. training expenditures rose nearly 12% to $92.3 billion in 2020-2021.
However, despite this focus and investment for developing a successful learning strategy, many organisations are failing to regularly run learning programmes and learning strategies that truly elevate performance and provide significant returns on investment (ROIs).
HR managers are recognising that the traditional, formal training programs won't cut it anymore in this fast-paced business environment. In fact, HBR states that 75% of managers are dissatisfied with their company's in house development programmes and L&D functions.
In these times of great changes, a polished learning and development program becomes more important than ever for their overall business strategy and gain competitive advantage.
In fact, a very significant percentage of market capitalisation in public companies comes from workforce knowledge, skilled employees and leaders - in other words, the intangible assets within an organisation.
Transforming your Company into a Learning Factory
Increasing Employee Retention
Recruiting and retaining new employees is not just time-consuming, but costly. With the right learning and development strategy, companies will be able to prevent their top talents from leaving with the right practices and strategies that they've invested in. In fact, when organisations develop a strong employee retention strategy, they combat voluntary employee turnover, thus promoting the health and success of the organisation.
Stronger Company Culture
It’s a known fact that companies with healthy cultures outperform those that don’t. Fostering a continuous learning journey not only makes employees feel like their learning and development needs are being met but will demonstrate to them that the organisation is committed to their long term success.
Planning for Success: Build a successful L&D Strategy
L&D’s strategic role spans five areas:
- Attracting and retaining talent
- Motivating and engaging employees
- Developing people capabilities
- Creating value-based culture
- Building employer branding
Offering a safe space for continuous feedback
The learning environment is pivotal for an overall employee development strategy and their continuing professional development. Employers need to provide continuous, customised feedback in order to activate employee engagement that inspires and supports growth and change. Therefore, providing ongoing feedback helps employees stay motivated and thus increase their retention.
Making learning accessible and scalable
As the pandemic threw us into a hybrid work model, many organisations were unprepared for the new skills they needed to continue their learning and development practice and maintain a positive learning environment (all while complying with social distancing measures caused by COVID-19). One of the clear shifts that had to be made was offering corporate learning and training to all employees, regardless of whether or not they were able to be physically in the office. This sparked a megatrend in e-learning platforms and a huge demand for artificial intelligence (AI) training platforms.
The Pitfalls of E-learning Platforms
As organisations were forced to digitalise their learning and development strategy, several companies turned to online and distance education methods such as e-learning platforms to provide learning for their teams.
But some skills just can't be learned by simply watching a passive video clip - I mean, just because you binge-watch a cooking show, doesn't mean you'll become a Michelin star chef by the end of it, right?
Despite the fact that these platforms provide plentiful knowledge, the lack of interactivity means that they do not have the ability to shape behaviour, communication, or interpersonal skills. Furthermore, tuning into a video to listen to someone talk about improving your emotional intelligence skills probably isn't going to inspire, encourage creativity, deliver innovation, nor is it going to foster the next level of leaders.
A Hybrid Learning and Development Strategy is the Future of L&D
Today’s fast-moving business landscape calls for organizations and their people to adapt to changing circumstances rapidly - and adapting a company's learning and development strategy, one of the core areas of HRM, can make the crucial difference between an organisation that falls between the cracks of innovation, and an organisation that comes out of the pandemic stronger than before.
So why are so many HR managers implementing artificial intelligence as a tool for corporate learning?
The rising in artificial intelligence is creating new dimensions and redefining the concert of training employees. In fact, as the benefits of AI in learning and development strategies are becoming more and more known, a lot of funding into AI research has been given, and spin-offs and startups are emerging at unprecedented rates.
Take, for instance, Retorio. A start-up from Munich that combines video analysis with client simulations to offer interactive training solutions for customer-facing positions, such as sales, consulting, etc.
Retorio’s analysis is based on the universally accepted, advanced psychological model, the Big Five. This model describes an individual’s perceived personality in terms of five dimensions: openness, extraversion, conscientiousness, agreeableness, and neuroticism. Though personality traits cannot specifically predict behaviour, the Big Five gives insight into how individuals may react, behave, and interpret things differently from others in the same situation.
If you'd like to see how Retorio can help organisations identify success patterns within a workforce and train and develop employees, you can try out the AI for yourself by clicking below.