Marc deGuzman | Value through agility

Confused about training ROI

Return on Retention: Training to Sustain

Why is training such a complex thing? It improves something that is lacking after all.

It communicates new processes or policies for compliance to sustain operations. It also moves skills (i.e., upskill, reskill) via frameworks making work “easier,” retaining talent and acquiring in-demand credentials. Training’s various applications make it a bandage, bridge, or blocker.

Our quick-hit culture views training as the need or problem, regards one-time events as “learning,” and expects instant return on investment (ROI). This stance hampers outcomes because it is always chasing the new, next, or known training trend. Consider this example of just-in-time (JIT) training: “the team doesn’t know Scrum, so we’ll train them on it in a day, then they’ll do it perfectly in the coming weeks.” While it may produce some “ah-ha” moments, it doesn’t resolve the system-level problem(s), or the reason Scrum training is a good fit.

Here are four tips to deploy training, sustain continuous learning, and realize a return on retention:

  1. Know the problem, then solve it
  2. Reflect on progress
  3. Safe to fail = dynamic learning
  4. Value through purpose
Water line

Training aspirations

Conventional training is applied programmatically, endorsing static plans, incentivizing professional development as employees’ growth objectives tied to the business’ goals. Talent aspirations are often enveloped within an annual scope and procurement partners are brought on in-flight. Who is the real customer here? Does that approach motivate people to sincerely “level-up” their game? Incentivizing controlled learning feels like a known dysfunction of a system that hasn’t thoroughly been investigated.

Training alone will not transform the existing culture to whatever aspirational future-state. Keep in mind that training is one of many solutions available to raise performance. Poor training implementations have a greater impact on organizations, things like morale and employee churn for starters.

JIT tip #1

Conduct a needs analysis to narrow training aspirations prior to fitting a solution, and then shape realistic goals rather than just tick-in-the-box training.

It’s time we shift the training perspective away from employee retention – seeking a return on knowledge retention. This shift seeks to understand the problem through analysis and fortified by environmental awareness and learning agency. Employees should feel they own their learning process with freedom to share findings. Socializing habits reinforces learning practices and other informal things, creating a culture for knowledge retention.

Build a culture quote

The learning team

Creating the values which give credence to the learning team are relatively easy. Construct training opportunities such as small pilots anchored to the unique work of the team. Tools like personality profiles allow people to level-set for better communication and working agreements, gradually building habits and contributing towards a team’s learning culture. At this level we’re establishing the learning-loop cadence.

JIT tip #2

Reflect on the pilot through “what, so what, and what now?” If the experiment fails, they learn and either revert to the original process or try a variant.

Teams want to quickly train, retain lessons, and press on through continuous learning. People thrive when given opportunities to test various tools, approaches, and different ways to build general and transferrable skills as teams churn.

The learning business

Training outcomes improve when stakeholders participate in the training lifecycle, pairing activities with overall initiatives. According to LinkedIn’s 2020 Workplace Learning Report, managers are fundamental to employee engagement and making learning a top priority. Plans modelled only on buy-in neglect the elements in envisaging the learning business; episodic “learning & development” is not sustainable, instead opt for a learning mindset engendered within the business.

JIT tip #3

Is the environment “safe to fail” or “safe to change?” Review barriers to change and evaluate areas such as employee support and safety, and structure to spread positive impact across the business.

Business leaders and managers can reinforce the mindset without selling it as “today’s initiative,” by attracting energy and raising social capital within their sphere of influence (SOI). Truly walking the talk is vital, demonstrating consistency as a practice in wanting people to share, supporting knowledge retention.

Skew arch bridge
Skew Arch Bridge. Reading, PA

The learning organization

Continuous improvement is an attainable big hairy audacious goal when fueled by knowledge retention and ownership. The learning organization uncovers better ways of working by analyzing pilots beyond “best practices” to prioritize learning-based change. Two keys are exhibiting lessons learned and leveraging sources of experimentation. Our systems learn from both positive and negative results so we must accurately and transparently communicate these results. Distributing contextual lessons becomes a core value for organizations wanting to retain knowledge.

JIT tip #4

Is the base “fit for purpose?” Partners across the organization coordinate a multi-layer commitment to learning, and knowledge management to optimize talent in today’s environment.

Training is the keystone in sustaining the change-friendly behaviors. Routinely assess the organization’s state, capability gaps, and talent needs as well as messaging when measuring return on retention. Construct opportunities like coaching to bridge these gaps. Coaches enable a culture of learning, producing the behaviors, habits, awareness, and intellect which ensure readiness to respond to change – breaking the reaction cycles.

Smith Island cake
Smith Island cake. Photo credit Jay Fleming

Return on retention shatters the conventional training paradigm

Training measured by ROI acts like contract to perform. In terms of ROI, how can you guarantee any one-time event is sticky? Coaching soft skills and intangibles will push the team through innovation blockers even on technical problems. But, is ROI on training the figure that matters? Tracing those actual $$$ and direct indicators of training impact as ROI is difficult. We’re really trying to measure the formal training, SOI, and informal learning that occurs outside of the controls of a training event. Authentic learning happens elsewhere in life settings, over time, and from experiences independent of the business space. Remember, Individual and organizational performance reflect training success – not ROI.

“Companies that decide to embrace continuous learning are going to be the ones that survive going forward.”

– Ryan Ripley

Talent development really should be routed for layered capabilities along with the competencies which enable quick changes in direction. Layering allows us to execute tactically with knowledge that supports strategies in-process. 2020 forced us to reconsider how we conduct work and sustainably support our workforce. Future shifts in training will likely support responding to perpetual change through a true return on retention.