Have you heard of scrap learning? 

This is where you assess and inquire with your leaders about the practical application of their training in their day-to-day roles.

If you are only going to use 60% of what you have learned, then 40% is scrap.

All attendees of our Element of Change virtual leadership forum in March expressed astonishment at this statistic and admitted they haven't surveyed their leaders since COVID to assess the relevance of their training programs today.

According to Harvard Business Review, inadequate training programs cost companies about $13,500 per employee per year. 

In retail, for example, we wouldn’t tolerate 40%+ shrinkage. Why would we tolerate that level of loss from our training?

Now, think about how you could invest a fraction of that money into setting up an effective program that’s more intentional, strategic and relevant about what your team needs today, vs. pre-COVID, you set yourself up for success.

In my recent article, we talked about three ways your organization can solve a leadership continuity problem.  Here are three ways to apply those same lessons to prevent scrap learning. 

ONE OF THESE WAYS INVOLVES UTILIZING STRATEGIC COHORTS, which are peer-based learning pods or small groups that support each other to drive innovation and problem-solving.

In a similar way, how you structure your Strategic Cohorts and plan your Extended Learning Programs can make a world of difference in how your leaders apply and utilize the information, as well as how they progress which can have a powerful impact on how you structure future succession plans.

THE SECOND WAY IS THROUGH STACK & BUILD LEARNING PROGRAMS, a  structured approach where learning experiences are systematically organized and built upon to enhance skill acquisition and knowledge retention.

Although the initial investment for Stack & Build Learning Programs may be higher compared to traditional training methods, the long-term benefits far outweigh the costs.

According to PwC, 77% of CEOs see the lack of key skills as the biggest threat to their business. When one of those VPs departs, it could cost up to $276,900 to replace the teammember with a salary of $130,000 a year, per the Center for American Progress estimates. 

Ultimately, the investment in Stack & Build initiatives enables organizations to create a sustainable culture of learning and development, leading to better outcomes and a stronger competitive advantage.

THE THIRD WAY IS TO IMPLEMENT EXTENDED LEARNING PROGRAMS, where you provide ongoing skill development and knowledge acquisition beyond traditional training programs.

Did you know that more than 60% of workers need to upskill or reskill by 2027, according to the World Economic Forum? The choice is clear. You could spend several thousand dollars per person to help your leaders upskill, or you could spend up to 213% of each leader’s salary to replace them. By investing in Extended Learning Programs, organizations can make sure that employees get consistent and comprehensive development opportunities tailored to their needs.

Again, while the initial investment may require strategic budget allocation compared to one-off training sessions, the long-term benefits justify the allocation.

Want to connect with other senior leaders and HR partners?

Visit www.eocleadership.com today for details on our upcoming forums that offer tailored insights and group discussions designed to support senior leaders and HR partners in healthcare and retail.

‍

Harvard Business Review. (2019, October). Where Companies Go Wrong with Learning and Development. Retrieved from URL

PwC. (2017). 20th CEO Survey. Retrieved from URL

World Economic Forum. (2023, April). Future of Jobs 2023: These are the most in-demand skills now - and beyond. Retrieved from URL

Center for American Progress. (2012, November). There Are Significant Business Costs to Replacing Employees. Retrieved from URL