Category Archives: Employee Development

Lost Opportunities: The Hidden Cost of Disengagement

We all know that engaged workers are more productive and loyal. Conversely, disengaged workers are less productive and are among the first to “turnover.” And we all know that turnover can be costly considering it involves hiring, onboarding, training, ramp time to peak productivity, the loss of engagement from others due to high turnover, higher business error rates, and general culture impacts.

But how much does turnover “really” cost?

A 2017 Deloitte study stated the cost of losing an employee can range between 1.5–2.0x the employee’s annual salary. But the costs can be even higher based upon skill level. For example, a paper from the Center for American Progress determined that the average economic cost to a company of turning over a highly skilled job is 213% of the cost of one year’s compensation for that role.

Then there are some of the less tangible considerations, as illustrated by the following example: A young, seemingly fast-rising junior executive had been working at a large bank for just over six years. When he was asked about his job and how he felt about it he said, “The job’s OK.”

His lack of enthusiasm was evident, and when pressed to say more he added, “Well, I’m not really learning much anymore.”

When asked if he was fully-engaged he said probably not but went on to say that he still did a great job. “I still give 100% and consider myself to be a great employee,” he said. Then, after a short pause, he added,” But I don’t give them 110% and there’s a big difference between 100% and 110% — at least for me.”

When asked if he was out looking he responded, “No…, but I’m listening.”

When asked whether he told his boss how he was feeling he said, “Yeah, but….”

How many people in how many places feel like he does? He is bright, educated, skilled, well-liked, and might be an ideal candidate for a senior leadership position…if he stays.

But is he being made to feel like an important part of the team? Does anyone realize that he could be giving more? Is he being engaged?

As stated above, among the many documented advantages of an engaged worker is loyalty. But so too is the discretionary effort that they put forth; going the extra mile; the above-and-beyond attitude… giving 110%! How many innovative ideas might that extra 10% yield? How much more productivity? What impact might it have on customers or coworkers?

And if he doesn’t stay, the simple replacement costs are not the real issue. He is a potential super-star! He is a known-entity… trustworthy, dependable, low-risk.

What are the real (or hidden!) costs associated with disengagement; the costs of not getting 110%… the costs of not only lost workers, but also of
lost opportunities? As we’ve discovered over the years, the biggest waste in most businesses is the lost opportunities…

Your Training ROI & How to Optimize It

We are often asked about how organizations can optimize the value of their Learning & Development or training programs, with many leaders looking for ways to increase training-related behavioral change as well as their return on investment.

A recent VitalSmarts webinar addressed this subject quite nicely, and shared several perspectives that are well-aligned with ours.

Here’s a brief summary:

First and foremost, the webinar’s over-arching premise is that Learning & Development must become a strategic partner of the C-suite in order to bring about improvement and real behavioral change. In addition, there must also be a C-level commitment to consistent L&D programming. As the presenters said several times, “Training, or L&D, must be treated as a process rather than an event.”

These concepts align nicely with our perspective about the importance of senior level management’s buy-in, sponsorship, and involvement in all improvement initiatives. And, in case some convincing is in order, the article went on to share some thought-provoking statistics.

For example, only 7% of Learning & Development leaders measure the bottom-line effectiveness of their training programs. Possibly more troubling, only about 10% of all Learning & Development executives have met with the C-suite; and only a few align their training plans with the organization’s strategic plan.

In addition, only 35% of the US workforce receives any training at all! And even then, the average is three days of training per year.

Finally, without effective reinforcement and ongoing development, only 14%-15% of the information shared in training “sessions” is applied in the workplace. Instead, people most often do nothing differently or make a few changes for a while and then revert back to whatever they were doing in the past. Clearly this enormous “gap” represents significant waste, which was referred to as “learning scrap.”

3 Best Practices

For those who are determined to improve the value and effectiveness of their Learning & Development programs, (i.e., increase learning transfer and reduce learning scrap), three best practices were suggested:

Define the role and purpose of Learning & Development within the organization. To begin this process, the first couple of questions might be, “What would translate to a breakout year for L&D?” “This training will be a success when… (complete the sentence)”

Build the Learning & Development platform on defined and agreed-to business outcomes. It was pointed-out that most L&D managers plan their programming on what they “hope people will learn.” But the real focus should instead be on “what people will do differently as a result.”

Recognize that L&D is a process, not an event. The process must include ongoing measurement and support to ensure the business outcomes are achieved. This means coaching, reinforcement, and accountability on multiple levels:

  • C-level must be committed and allocate resources for appropriate levels of learning as well as for reinforcement and ability coaching
  • L&D leaders must align with business outcomes, and move the “finish line” of their training to include an achievement phase
  • Front line managers must provide reinforcement and support
  • People at all levels are accountable for applying what they’ve learned and related behavioral change