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Your Secret Weapon for Better Retention and Engagement in 2025

Writer's picture: Leslie SpeasLeslie Speas

Would you like to have better retention and engagement in 2025?


An important way to do this is to budget for employee development. It is a strategic investment that will help your organization improve skills, retain talent, and increase productivity – and can help you divert other costs and have better business success.


Consider these statistics to see why this is so important - and help justify the budget.

In organizations that invest in development:

  • 70% say they will stay for 3 years or longer (SHRM).

  • Outperform their peers by up to 20% (McBassi & Company).

  • 94% say they would stay at a company longer (LinkedIn Learning).

  • 68% of employees said training and development is the most important policy (ClearCompany).

  • 218% higher income per employee (The American Society for Training and Development, ASTD).

Plus, turnover costs 1/2 to 3 times an annual salary. If you can reduce that, you can pay for a lot of development!


Are you convinced yet? I got more if you need it!


5 Key Considerations


1. Assess Organizational Needs
  • Identify skills gaps and areas where employee development can improve performance or address future challenges.

  • Review strategic goals to align development programs with business objectives, such as improving leadership, innovation, or team productivity.

Example: Conduct a skills gap analysis or use employee feedback to identify where training is needed most.


2. Set Clear Objectives
  • Define the specific outcomes you expect from the development programs (e.g., improved retention, increased leadership capacity, reduced skill gaps).

  • Establish measurable goals such as increasing employee engagement by a certain percentage or reducing turnover.

Example: We will reduce turnover by 10% over the next year through a leadership development program.


3. Estimate Costs
  • Research the costs of training programs (e.g., workshops, online courses, leadership seminars, coaching) and any associated costs like materials, software, or travel.

  • Consider the number of employees involved and the duration of the programs. Account for both internal and external resources.

Example: If a leadership development program will cost $1000 per person and you have 10 leaders, budget $10,000.


4. Prioritize and Allocate Funds
  • Based on your needs and objectives, prioritize key areas where development is most critical.

  • Allocate the budget accordingly, focusing on high-impact areas like leadership training, technical skills development, or compliance-related training.

Example: You might allocate 60% of the budget to leadership development and 40% to skill-building workshops for other staff.


5. Track Progress and Adjust
  • Regularly monitor the outcomes of the development programs by tracking metrics like engagement scores, retention rates, or performance improvements.

  • Adjust the budget as needed, reallocating funds to more effective programs or scaling back on those with limited impact.

Example: If employee engagement increases after a new training initiative, consider expanding that program in future budgets.


Contact InfluenceHR Consulting for high-quality affordable options for leadership, employee, and team development!


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