Although there are many reasons why employees stay in their current position, in research conducted by TalentLMS and the Society for Human Resource Management (SHRM)76% of respondents agree that they are more likely to stay with a company that offers ongoing training.
And according to the online learning platform Udemy’s 2022 Workplace Learning Trends Reportemployers invest in their employees through career development and learning opportunities to keep them engaged in their current roles, encourage staff retention and ultimately increase revenue.
Statistical identified that corporate training spending in the United States increased by nearly $10 billion in 2021. The average training budget for large corporations in 2021 was $17.5 million, average allocated an average of $1.3 million and small businesses allocated an average of $341,505.
In detail, this equates to $1,433 per learner in training in small companies with 100-999 employees, $902 per learner in medium-sized companies with 1,000-9,999 employees, and $722 per learner in large companies with more than 10,000 employees.
While it’s hard to quantify the exact amount an investment in learning and development can pay off – there’s the cost of the training itself and the time spent away from your desk coupled with the value your training could add to future company revenue – Udemy also found that 85% of HR managers find training to be beneficial for organizational growth.
So do employers have the right to recoup any losses they incur if an employee who has undergone training leaves?
According to research by Center for American Progress, replacing a highly skilled employee can cost 200% of that employee’s annual salary. And then there’s the fact that your employer has invested in your skills, only for another company to benefit.
Legally, there is no hard and fast rule regarding learning and development compensation obligations if an employee leaves. Generally, if the training was mandatory, an employer has no grounds. More and more employers are using training agreement contracts that set out the terms and conditions of any training provided, including the cost and time it will take the employee to pay for it.
But if an employee engages in voluntary training to advance their skills and career and there is no training agreement in place, the company could still be entitled to claw back what they has spent. In USS POSCO Industries vs. Floydan employer was awarded $108,000 ($28,000 in compensation and $80,000 in legal fees) after a junior employee quit and refused to reimburse the employer, despite signing a training agreement stating that he would reimburse $30,000 if fired within a month or resigned within 30 months of employment.
Conversely, the Consumer Financial Protection Bureau is currently reviewing this process, so legislative options may come into effect in the future. The bottom line? There’s no real way to know what your current employer might do if you’ve had some training and now want to change jobs.
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