It's Never Been More Affordable to Train and Retain Talent
In life we are constantly looking for as many guarantees as possible. We are turning to predictive analytics to anticipate successful hiring, employee and manager behavior, etc. We are consuming massive amounts of data, reviews, and research when we buy items to ensure we are getting quality for our money. We are even looking up reports on people we are considering dating.
We should strive to be as certain as possible whenever we can, and make well-informed decisions, especially regarding people. With that said, studies continues to show how critical Learning and Development are towards retaining and engaging talent yet only 14% of firms report using a Learning Management System (LMS) according to the 40th Annual Deltek Clarity Architecture & Engineering Industry Report.
A recent EdAssist study indicates the following. When asked to choose between two similar jobs, nearly 60 percent of Millennials would pick the job with strong potential for professional development over one with regular pay raises.
So, why does this large gap exist? There seems to be a common misconception that the Learning function is one of the most expensive functions for HR to build and maintain. In fact, the Clarity Report indicates that 40% of respondents view developing and implementing Learning as one of the top three most expensive HR-related processes.
Despite having this viable solution to mitigate engagement and retention issues, firms don’t have an understanding of to afford a Learning Management System and even see a significant return from it. Keep reading to gain a full understanding of just how affordable this solution is, and how quickly your firm can be on the path to mitigating such challenges.
Generally speaking, there have several misconceptions firms have about implementing Learning:
Myth #1: We need to hire an LMS Administrator. An LMS Administrator’s salary can range from $50,000 to $75,000 base salary (or higher) plus 30% burden = $65,000 - $97,500. We simply cannot afford that.
Truth- We absolutely do not need a dedicated LMS resource to get the Learning function up and running. With the assistance of Deltek’s highly talented implementation team, this process is quite easy (and quick). After configuring the LMS, we can have access to powerful e-learning content less than one day later.
Myth #2: In addition to finding the LMS Administrator, we need time to build a full Learning function. On the e-learning side, it can take 1-2 weeks to build just one course.
Truth- As noted above, we have a solution to having a full library of content that we can access within a day of completing our LMS configuration. We do not need to have in-house expertise in building e-learning courses.
Myth #3: We have to plan Learning tracks in order to have a sophisticated model, and we just do not have time for that level of planning.
Truth- Yes, it is preferable to have Learning paths and a well-thought out strategy and plan for Learning; however, like most things, implementing this in phases is a great approach. With this in mind, simply getting great Learning assets in front of our staff is a significant first step that can provide immediate return. Paths can be developed in phase two, but why not get excellent material in our employees’ hands now?
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The Promised Solution
Deltek has invested in a partnership with a premier 3rd party Learning content provider specifically focused on project-based businesses. Access to the full LMS along with a bundle of over 130 powerful e-learning courses can cost less on a per employee per year basis than taking that employee out to lunch one time during the year.
Yes, let me state that again. For what we would spend on an employee and a manager going to a nice lunch to thank the employee for his/her contributions (including meal and tip), that employee could instead have access to nearly 200 hours of project-based e-learning training, along with a robust LMS that tracks Learning history, certifications, and much more. This content includes: Project Management training, PMBOK training, Leadership, Compliance, HR Essentials, and more. So…a couple Turkey Reubens, iced teas, desserts and tip for that employee and manager, or nearly 200 hours of e-learning content access for the employee? Tough call, because you really can’t overestimate the value a good Reuben has on retention.
Let’s look at this one more way. If we failed to retain just one key member of our organization (perhaps an Engineer in this scenario), and had to pay a 3rd party recruiting fee to replace him/her, at a typical 25-30% fee on first year’s salary, we may be spending $25,000 or more on one employee replacement fee. With proof that Learning and Development fuel engagement and retention, what if we could spend roughly a third of this and have an LMS and nearly 200 hours of content to engage our entire workforce?
We generally don’t budget for these recruiting fees, yet they eat away at the bottom line. These extraneous Acquisition costs, generally unplanned, are paid frequently by firms like ours because we “have to have qualified staff for projects to support our customers”. Why not spend significantly less, retain those key team members who have intimate knowledge of and relationships with our customers, and yield even more profit (or even use the savings on more engagement and retention initiatives)?
We stated that simply hiring the LMS Administrator represents a substantial financial commitment. For a typical organization, the LMS and content can be implemented at less than 10%-20% of the cost of that LMS Administrator’s salary plus burden. Can we still say the Learning function is too expensive to invest in?
We would rather reduce turnover, retain our key personnel, and improve productivity in our staff with a much smaller investment than continue to spend unnecessary costs. These acquisition and attrition-based costs such as: project, customer disruption and dissatisfaction, increased unnecessary acquisition and recruiting costs, additional onboarding, training and administrative costs, and survivor’s burnout are completing eroding profitability, customer satisfaction, and employee retention.
If you are ready to act and are ready implement a powerful Learning function quickly and affordably, please contact a Deltek Representative today to initiate the process. Our talented implementation team is ready to help you implement the Learning function quickly and effectively, mitigating and solving many of your employee-based challenges.
About the Author
David Lee is currently a Product Manager for the post-hire modules within the Deltek Talent Management suite, Dave has oversight of Performance, Learning and Development/Succession. As a former Vice President of Human Resources, Dave possesses nearly twenty years of Human Resources expertise with significant focus in talent/employee development and employee relations. Dave is a DDI certified leadership trainer and possesses an MBA from Walden University as well as various HR certifications.
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