BHEF ROI Quick Take Chat Deck 12.1.21

November 18, 2021 The Cost and ROI of Talent Development BHEF Quick Take Chat Christina Curnow Managing Director, Human Capital Solutions American Institutes for Research [email protected] Jason Trujillo Vice President, Performance Resilience and Corporate HR Stanley Black & Decker, Inc. [email protected] Jennifer Thornton Vice President of Programs Business-Higher Education Forum [email protected] Speakers BUSINESS-HIGHER EDUCATION FORUM | WWW.BHEF.COM | ©BHEF 2 ➢Talent is one of the most important assets of a company ➢From 2012-2020, U.S. training expenditure has increased by 48% from $55.8 billion to $82.5 billion (Training Magazine) Why Should Business Invest in Talent Development? BUSINESS-HIGHER EDUCATION FORUM | WWW.BHEF.COM | ©BHEF 3 Key Employer Benefits BUSINESS-HIGHER EDUCATION FORUM | WWW.BHEF.COM | ©BHEF 4 Reduce investment in recruiting / onboarding new talent Increase retention and employee satisfaction Position companies to be more attractive and competitive in the marketplace Diversify talent pool Models of Talent Development BUSINESS-HIGHER EDUCATION FORUM | WWW.BHEF.COM | ©BHEF 5 Pre-EmploymentIncumbent Workers Apprenticeships Internships Co-Ops Upskilling and Reskilling Tuition Benefits Career Training Mentorship/SponsorshipOn-Ramps Business •Identifying goal of initiative and how objectives will be measured is an important first step •Making a case for talent development can be challenging due to the level of buy-in required to grow and scale •Outcomes may not appear overnight, but will be beneficial long term •If goals are established and systems in place, programs can assist with leadership buy-in and productivity •Data is instrumental in finding efficiencies or adjusting programs to enhance impact Higher Education •Demonstrate efficacy to employers by: oUnderstanding the goals of companies oResponding to their needs oUsing data to illustrate the added value they provide •Being responsive to employer goals by designing programs and credentials that align with them Considerations for Business and Higher Ed BUSINESS-HIGHER EDUCATION FORUM | WWW.BHEF.COM | ©BHEF 6 | A I R . O R G Findings and Considerations for Measuring ROI 7 ▪Commonly used formula: ROI = (benefit of training -cost of training) / (cost of training) Influenced by Practical Considerations and Organizational Values and Context Investment/Cost Examples •Cash investments e.g., Tuition, testing/certification fees (Lumina et al., 2016) •Employee time for participation (e.g., time away from productivity, additional resources needed o backfill) (Abner et al., 2020) •Program development and implementation costs (e.g., L&D employee salaries and benefits, technology costs, facility costs) (Bukhari et al., 2017; Harper-Anderson, 2019) •Program administration costs (e.g., personnel, infrastructure) (Devarakonda, 2019) Return/Benefit Examples •Promotions (Lumina et al., 2016) •Pay Increases (Androitis, 2017; Illanes et al., 2018) •Turnover (ETF@JFFLab, n.d.) •Retention (Illanes et al., 2018; Payne, 2020) •Engagement/Job Satisfaction (Bukhari et al., 2017; Schueler et al., 2017) •Productivity increases (Abner et al., 2020) •Lateral Transfers (Lumina et al., 2016) •Absenteeism (Schueler et al., 2017) •# of badges or certificates (ETF@JFFLab, n.d.) •Improved DE&I (McLennon et al., 2019) Challenges •Quantifying/monetizing some variables •Tracking people and associated metrics •Intervening variables •Needs to be planned in advance •Business-Higher Education Forum Quick Take on ROI: https://www.bhef.com/sites/default/files/2021-BHEF%20Quick%20Take-ROI.pdf •American Institutes for Research Walmart-funded study on Measuring Skills at Work: Lessons from the Field: https://www.air.org/project/measuring-skills-work-lessons-field The next Quick Take Chat is on The Bipartisan Infrastructure Bill and the Opportunity for Higher Education January 27, 2022from 2:00-3:00 p.m. ET Register Now Additional Resources BUSINESS-HIGHER EDUCATION FORUM | WWW.BHEF.COM | ©BHEF 8 One Dupont Circle, NW Suite 360 | Washington, D.C. 20036 www.bhef.com| [email protected] © 2021 BHEF