Organisations see employee learning as investment, not expense: Survey

More than 80% of the organisations have some form of structured learning and development programme in place, with 38% of the experts stating that ‘improving employee performance’ is the prime focus of their programmes this year. Across industries, sales teams tend to benefit most from these exercises with nearly 25% of the learning and development (L&D) budgets spent on training them, revealed Mettl’s State of Workplace Learning and Development Report 2018.

The survey was conducted among 1,500-plus L&D leaders by online talent measurement solution provider Mettl at a time when the biggest challenge facing Indian organisations is the rapid change in skills employees need to possess to take full advantage of new technologies. Large companies will focus on ‘reskilling the workforce’, whereas, small ones will concentrate on ‘improving employee performance’, the survey found.
“The need for reskilling will be required mostly in large-size organisations,” said Ketan Kapoor, CEO, Mettl.

Companies, the survey revealed, are increasingly looking at such spends as investments in human capital rather than expenses, with roughly half the organisations spending Rs 7,000-33,000 per employee annually. Average L&D spends per employee increases with the size of the organisation, with smaller ones (less than 1,000 employees) spending Rs 16,350 per employee, compared with Rs 52,879 per employee in large organisations (greater than 1,000). Overall, average L&D spend per employee is Rs 41,838.

The average spend per employee at the senior level (Rs 86,277) is three times that of entry-level employees (Rs 28,759).
While sales command the highest share in terms of such spends, operations accounts for 21%, followed by engineering and manufacturing (16%), IT/Technology/product (14%), marketing (12%), finance (7%), HR (2%) and others (3%).

As much as 64% of the surveyed organisations have increased their L&D budgets by 0-10% from 2017; about 30% have raised it by 10-20%, and another 6% by as much as 20-30%, the survey noted.

Blended learning has been found to be the most effective way to deliver programmes, but proving the value of learning to learners isn’t as easy as it looks. ‘Employees not attending programmes’ emerge as the biggest challenge of teams driving such exercises, the survey found.

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