Is your organization still trying to solve the talent shortage with recruitment as the primary strategy? Is the investment in current employees a priority to prepare for future needs of the organization?  Unfortunately, learning and development dollars are still the easy way to cut costs when the budget cycle comes around.

According to the 12^th Edition of the Conference Board of Canada’s Learning and Development Outlook, between 2010 and 2012, organizations finally increased their investment in training by a whopping 2.5 per cent!  That is after two decades of declines.  And here we are, wondering why our employees don’t have the skills and knowledge necessary to take on the jobs of the future.

There is countless information available to support the fact that organizations with a strong learning culture realize better results. According to Donna Burnett-Vachon (Associate Director, Leadership and Human Resources Research Conference Board of Canada), organizations that invest more in learning and development are being rewarded with higher levels of employee performance, customer satisfaction, and quality products and services compared to their competition

Companies need to take action.  The buy vs. build strategy will not always work.  An investment in people not only supports the growth of the organization but is also a key retention strategy.  Talent Management planning needs to incorporate these elements in a meaningful way.  The business case exists.  On average, the cost of replacing a mid-level employee is often 40 per cent of that individual’s annual salary. Yet, the Conference Board reports that in 2012, the average spend on a per employee basis for learning and development was approximately $705.

Can your organization afford not to increase the investment in its people?