Training and developing employees has been proven repeatedly to increase a company's bottom line. Companies that offer a comprehensive training program have a 24 percent higher profit margin than those that don't. Training improves employee retention; 40 percent of them who receive inadequate onboarding will leave during the first year. A recent survey of employees across three generations discovered that the availability of quality training affected the decisions of 70 percent of them to stay at their jobs. The cost to replace a mid-level employee is about 20 percent of their salary, so retention is a key to improving the bottom line.
eLearning is one of the fastest-growing industries in the world. It has been popular since 2011, and now more than 40 percent of Fortune 500 companies use eLearning. Small businesses have increased their use of online learning by about 900 percent since 2010. The eLearning market in Germany is growing at a rate of 8.5 percent annually and in the Asia-Pacific region at a rate of 30 percent.
COVID, of course, has had a role in forcing businesses to adopt eLearning. eLearning, however, has benefits that far exceed simply being an alternative way to train employees. For example, for every dollar spent in e-learning, a company gains $30 in productivity. Using eLearning as a primary way to train your team can improve your bottom line in several ways.
eLearning is efficient
Online learning requires about 40 percent to 60 percent less employee time than traditional training. This results in less lost productivity time for employees to obtain the same amount of knowledge. eLearning saves time associated with:
- Starting and wrapping up a session
- Waiting for the whole class to return from breaks or meals
- Travel time
- Teaching to the whole group rather than an individual
eLearning also provides the opportunity for employees to proceed at their own pace and to return to the training multiple times, rather than just offering a one-size-fits-all, one-time-only approach.
Employees tend to retain more.
eLearning uses various dynamic approaches to teaching the material, which appeals to different learning styles and is more engaging. In fact, eLearning boosts student retention rates up to 25 percent to 60 percent vs. 8 to 10 percent for traditional learning. It also creates the opportunity for microlearning, which creates 50 percent more engagement and is 17 percent more efficient than other types of learning because
- Microlearning is more focused.
- Microlearning content addresses only one or two learning objectives.
- The average learner is accustomed to learning in short bursts and can concentrate better than they can over a longer period.
Employees, especially millennials, prefer microlearning because they want training that meets their needs is on-demand and informal. Also, according to one estimate, microlearning increases the speed of development by 300 percent and lowers the cost by 50 percent. Rolling out microlearning courses is easier because they are modular.
eLearning saves money
With eLearning, companies do not have to pay travel expenses for an instructor and students or for renting space or buy classroom equipment. They also pay only for the instructor's time to create the course, not for travel time or set up time. Training magazine also estimates that companies save 80 percent just in printing costs when switching to e-learning instead of traditional classroom learning. IBM reportedly saved about $200 million after implementing an eLearning program.
eLearning is available on a global schedule.
Because eLearning is available on-demand, employees in offices around the globe can access it at their convenience. This 24/7 accessibility improves your bottom line because it allows all employees to have access to the training they need to be productive and engaged in their jobs without the need to engage trainers from different cultures.
eLearning also allows employees to learn collaboratively across cultures and time zones. Discussions across a wider geographic area can lead to deeper learning, and deeper learning leads to higher productivity and improved employee engagement, key factors in your bottom line.
Localization of training courses is critical to global employee engagement and learning. Localization is more than just translation; but also involves making the course content (including gaming and videos) relevant to each culture.
eLearning boosts sales
The more your sales team learns about the products and services you offer, the better equipped they'll be to relate the value of your products to potential customers. eLearning is a quick way to improve their knowledge. Because of the link between knowledge and sales, eLearning can lead to lower costs per customer acquisition and improved sales conversions -- key metrics that ultimately affect your bottom line.
Technology allows for rooting out ineffective courses
Many eLearning technologies provide metrics that can tell you which demos or tutorials failed to engage employees and in which modules employees struggled to grasp the information. Having this information allows you to make corrections to improve employee learning.
eLearning allows for standardization.
Because all employees will complete the same modules, training will be consistent no matter when or where an employee undertakes the training. Consistent training promotes brand consistency. It can also help re-enforce company policies that are important for compliance with regulations and save the company from fines because of lack of employee knowledge.
Because eLearning has so many advantages over conventional classroom learning, it accelerates every benefit of employee training. It also saves money in print, travel, and building and equipment rental costs and is more engaging. It allows for standardization across the globe and for global collaborative learning.
Key Takeaways
- Training and development are critical to the success of a business because it provides employees with the knowledge they need to comply with regulations, effectively sell the product, and promote brand consistency. It also is important to retaining employees.
- eLearning is more cost-effective and efficient than traditional in-person learning.
- eLearning often improves employee satisfaction more than conventional learning because it presents the material in various ways and gives learners control.
- With eLearning technology, a company can quickly determine what training tactics and modules are performing well and which are not.
- eLearning allows employees worldwide to engage with each other within the platform and, at times that work in each time zone.
- Localization of eLearning is critical to successful learning.
Andovar can localize your online learning in any language and in any country with its expert team. Fill out our online contact form today, and an expert will call you to discuss how we can help you gain the benefits of eLearning.
