How much is formal training worth to your organization?

Dive Brief:

In a competitive market, being a learning organization has become very valuable. But how valuable? According to ReviewSnap, a division of Applied Training Systems Inc., over 70% of learning on the job occurs informally – but companies have a hard time controlling that material. F ormal training is an established and trusted way for employees to learn new skills and materials for their job.
Josh Bersin says that when companies adopt formal training, these efforts put into place content and programs to help employees quickly ramp up skills. Such programs tend to outperform other types of training.
According to their research, 89% of employees believe that it’s important for employers to support their ongoing learning and career development. ReviewSnap advises that, “Training and performance management should never be kept separate, but should always be in balance.”

Dive Insight:

The most competitive companies design a “buffet of learning opportunities” which combine the best informal and formal learning programs for employees. Formal learning is valued mostly for its ability to produce consistent learning and processes, speeding up learning curves and getting everyone on the same page.

The ReviewSnap author mentions that, “Formal learning programs are, in general, quite structured, and usually have a developed system of teaching content. The structure of formal training is perfect for a company to determine standards of what will be taught and presented, and it creates consistency in material and knowledge throughout the company or department.”

Formal learning has its place in all companies, so long as it’s measurable and produces results. Having a system for gathering feedback (360 surveys) and then making changes to improve the learning program can be the best way to design learning that’s valuable to the company.