What We Throw Away When Our Training Doesn’t Work (Hint: It’s Not Just Cash)

Have you heard of scrap learning?

This is where you assess and inquire with your leaders about the practical application of their training in their day-to-day roles.

If you are only going to use 60% of what you have learned, then 40% is scrap.

All attendees of our Element of Change virtual leadership forum in March expressed astonishment at this statistic and admitted they haven't surveyed their leaders since COVID to assess the relevance of their training programs today.

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In retail we wouldn’t tolerate 40%+ shrinkage. Why would we tolerate that level of loss in our training?

After the reorg I went through in 2022 – if you didn’t catch that story, read my most recent blog posts How to Identify a Talent Retention Problem After a Leadership Departure.

– I realized there were not a lot of training programs for me to help these leaders through the transition.

I had to develop strategies as I went.

For example, we wanted to use Stack & Build behaviors to help these leaders navigate change – but what did we need to incorporate to do that?

I had to help the organization see that Stack & Build isn’t just about pushing out generic change-management training.

We had to first acknowledge psychological safety. Then we had to acknowledge how to communicate effectively. We also had to acknowledge how to handle conflict resolution, because there were so many complicated emotions as we went through the reorg.

This helped me realize the direction I wanted to take Element of Change, to help organizations like yours.

Chances are, you’re throwing away money to these sporadic workshops and trainings – not realizing that if you’re more intentional, strategic and relevant to what your team needs today, vs. pre-COVID, you set yourself up for success.

In a similar way, how you structure your Strategic Cohorts and plan your Extended Learning Programs can make a world of difference in how your leaders progress, and how you structure future succession plans.

In our last blog, we also talked about Three Ways Your Organization Can Solve a Leadership Continuity Problem. Those same lessons can apply here, to prevent scrap learning.

ONE OF THESE WAYS INVOLVES UTILIZING STRATEGIC COHORTS, which are peer-based learning pods or small groups that support each other to drive innovation and problem-solving.

Right now, you might invest tens of thousands of dollars into sporadic training sessions – and potentially throw money into a hole.

According to Harvard Business Review, inadequate training programs cost companies about $13,500 per employee per year.

Now, think about how you could invest a fraction of that money into setting up an effective Strategic Cohort program.

Keep in mind: When you lose a senior leader, your organization could pay up to 213% of their annual salary in turnover costs, according to the Center for American Progress.

THE SECOND WAY IS THROUGH STACK & BUILD LEARNING PROGRAMS, where you take a structured approach where learning experiences are systematically organized and built upon to enhance skill acquisition and knowledge retention.

According to PwC, 77% of CEOs see the lack of key skills as the biggest threat to their business.

When one of those VPs departs, it could cost up to $276,900 to replace one with a salary of $130,000 a year, per the Center for American Progress estimates.

Although the initial investment for Stack & Build Learning Programs may be higher compared to traditional training methods, the long-term benefits far outweigh the costs.

Ultimately, the investment in Stack & Build initiatives enables organizations to create a sustainable culture of learning and development, leading to better outcomes and a stronger competitive advantage.

THE THIRD WAY IS TO IMPLEMENT EXTENDED LEARNING PROGRAMS, where you provide ongoing skill development and knowledge acquisition beyond traditional training programs.

Did you know that more than 60% of workers need to upskill or reskill by 2027, according to the World Economic Forum?

You could spend several thousand dollars per person to help your leaders upskill, or you could spend up to 213% of each leader’s salary to replace them.

By investing in Extended Learning Programs, organizations can make sure that employees get consistent and comprehensive development opportunities tailored to their needs.

Again, while the initial investment may require strategic budget allocation compared to one-off training sessions, the long-term benefits justify the allocation.

Did you miss February’s forum?

Join our upcoming forum today for tailored insights and discussions designed to support senior leaders and HR partners in healthcare and retail.

Harvard Business Review. (2019, October). Where Companies Go Wrong with Learning and Development. Retrieved from URL

PwC. (2017). 20th CEO Survey. Retrieved from URL

World Economic Forum. (2023, April). Future of Jobs 2023: These are the most in-demand skills now - and beyond. Retrieved from URL

Center for American Progress. (2012, November). There Are Significant Business Costs to Replacing Employees. Retrieved from URL