In Learning and Development (L&D), we continuously explore ways to showcase our value and impact to the company. After all, we are often perceived as a “cost center.”
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We focus on completion rates, NPS, and skill assessments. But what if there’s a simpler, more powerful metric we’re overlooking?
💡 Here’s a perspective-shifting idea: L&D isn’t just a cost center. It’s a value multiplier. The key? #TSPE, or Time Saved Per Employee (I made this up, but it sounds great)
If you believe the training you create can save each employee in your company just one hour per week (and I do), you’re sitting on the most overlooked metric in the industry. This might sound like a self-serving hot take, but let’s do the math.
- 👥 Company size: 5,000 employees
- 💵 Average total employee cost: $100,000/year
- ⏳ Time saved: 1 hour/week/employee
- 💰Annual savings: $12.48 million
That’s right. For a company of this size, one hour saved per employee per week could yield over $12 million in annual value.
Why it matters:
- Direct impact on productivity
- Easy to understand for all stakeholders
- Scalable across the entire organization
But here’s the kicker: This is just the beginning. This calculation doesn’t even account for:
- Reduced errors
- Lower attrition rates
- Increased employee engagement
- Improved product/service quality
- Enhanced customer satisfaction
The bigger picture: Effective training doesn’t just save time. It can lead to:
- Improved innovation and problem-solving
- Better teamwork and collaboration
- Increased adaptability to change
Bottom line: Before we get lost in the weeds of minute analytics, let’s start with this powerful, often overlooked metric. It’s a simple way to demonstrate L&D’s massive potential impact on the bottom line.
🧮 Ready to calculate your impact?
I’ve created a calculator that allows you to input your numbers and instantly see the impact you’re making at your company. It’s super easy and will give you a foundational metric to start with as you share the value of your L&D work.