Learning and Development

Retention: a real human capital challenge

Once an organisation has acquired its Human Capital asset – what next? Well, retaining it becomes the next challenge.

One of the things high-up on any employee’s agenda now is their own personal development. People want to know they are joining an organisation that takes their learning and development seriously. Employees expect to be part of processes, frameworks and plans that will not only lead to their professional development, but also their personal growth and improved employability.

Although this means organisations should be thinking about using Learning and Development strategies as a tool for retention of their ‘most valuable asset’, the 2007 CIPD Learning and Development survey shows there is a downward trend in areas such as coaching activity, which has declined 16 points from results in 2006.

Although Learning and Development can be an effective retention tool, there are also clear business drivers for investing in people’s development.

As most industries now respond and adapt to their market pressures at high-pace, it is vital organisations keep all their sources of competitive advantage at the leading edge – and this includes their people. Companies investing in the development of Human Capital should continue to maximise the value of this asset.

Engaging activities to develop Human Capital

When people think about Learning and Development, they often think about training courses, but the process encompasses a wide and varied spectrum of activities for employees to engage with. This might include:

• Building work experiences outside ‘the day job’
• Stretch assignments that require employees to build different skills
• Coaching around different learning styles and individual aspirations
• Performance Management, which includes focused feedback from managers to build competence and skills
• Mentoring to help individuals navigate the world of work and their careers generally

The issue then arises as to how best to monitor, track and record these different methods of Learning & Development in order to gauge return on investment. What, from this broad spectrum of activities, is going to have the most effective impact on an organisation will vary according to factors such as size, sector and business strategy. But assuming a business knows what it wants to achieve, an approach to Learning & Development can be framed around what is going to increase a person’s capability and drive to deliver.

One of the most widely accepted ways of evaluating the impact of Learning and Development processes is Donald Kirkpatrick’s four-step methodology, used by many organisations worldwide:

• Reaction: how the delegate felt about the training or learning experience
• Learning: learning evaluation to measure the increase in knowledge - before and after the intervention
• Behaviour: the extent of applied learning back on the job, or practical implementation of learning
• Results: the effect on the business or environment by the trainee

Creating a connection between the investments made in Human Capital development and the improved performance of an individual or an organisation can be difficult. But having a vision of what success looks like for both parties, captured through the Learning and Development process, as well as a method of measuring results through Performance Management should help organisations maximise the value of their employees, whilst helping to keep them engaged and motivated to deliver.