Chief Learning Officer - October 2008 - (Page 53)

DATA POINT Companies that have adopted integrated learning and HR strategies through talent management achieve approximately 45 percent higher workforce productivity and almost 40 percent higher revenue generation than their peers. Source: Aberdeen Group and the Human Capital Institute most to employees. When this happens, companies set themselves up for inevitable churn, which becomes especially hazardous in a tight labor market.” According to research and advisory ﬁrm Bersin & Associates, corporate training constitutes a $60 billion industry in North America, worldwide spending is greater than $150 billion and an average of 2.4 percent of payroll is spent on training. Bersin & Associates’ research also revealed that, “Today’s corporate training organization is trying to redeﬁne itself in the world of reduced spending, the multigenerational workforce, social networking, increased globalization and a tremendous focus on integrated talent management.” To drive workforce productivity and business performance, forward-thinking organizations are undergoing a fundamental shift in how they build and manage their people, moving toward a business operations-centric approach. Learning management is, of course, critical to developing organizational capabilities. To move to a business operations-centric approach to managing people, employee learning must be tightly integrated with HR processes, such as performance and career development. Why? By leveraging data across the enterprise, organizations can drive workforce performance to new levels, which can have a dramatic impact on the bottom line. Organizations can proactively develop learning plans based on performance results and the speciﬁc needs of business units. According to a study of more than 165 organizations by Aberdeen Group and the Human Capital Institute (HCI), companies with integrated learning and HR strategies through talent management achieve about 45 percent higher workforce productivity and almost 40 percent higher revenue than their peers. As Easy as It Sounds? Historically, most HR departments have operated using a decentralized model, in which each functional area operates independently, with its own goals, measures and budgets. For example, little to no integration typically exists among core HR functions such as development, performance management, compensation, succession planning and retention. Because most companies have not integrated learning and HR functions, the migration to a cohesive learning organization in which learning and development activities are not only tied to HR activities, but also to business objectives, can seem daunting and complex. Most organizations have tools for learning management. Many also have disparate tools for performance management and compensation planning. However, these projects often are managed in isolation and with separate resources, limiting the role learning and HR play in corporate strategic-planning processes. The organizations best positioned to win the Chief Learning Ofﬁcer • October 2008 • www.clomedia.com 53 http://www.clomedia.com

Table of Contents Feed for the Digital Edition of Chief Learning Officer - October 2008

Chief Learning Officer - October 2008 Editor’s Letter Connections Business Impact Best Practices Effectiveness Guest Editorial How Fast Is Your ‘B’ Team? Hampton Hotels CLO Profile Save the World, Make a Buck: Seven Ideas From the Nonprofit Sector Developing Leaders at Amnesty International Learning Measurements: It’s Time to Align Aligning Measurement to Business Success Training Employees With Special Needs How to Reach Disabled Learners Hands Off: Facilitating Informal Learning Who Owns Informal Learning? Case Study Business Intelligence Advertisers’ Index Editorial Resources In Conclusion

Chief Learning Officer - October 2008

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