The Forgetting Curve and Diminishing Returns on Learning Investment

Training and development contribute to employee growth, job satisfaction and productivity. A culture of daily learning means employees are continuously motivated and engaged in their work. It's a reflection of organisations’ commitment to deliberate and systematic investment in talent, designed to build the skills, knowledge and competencies necessary for collective success. Integrated learning operations have the power to elevate employee experiences, for improved performance and retention, as well as customer experiences for increased revenue and advocacy.

But, research and in-depth interviews with business leaders by Digemy revealed low training retention as the leading cause of operational inefficiencies and diminishing Return-on-Learning-Investment (ROLI).

In this article, we unpack the findings of this research - the pain points affecting workplace training initiatives and expose the limitations of working memory as a leading cause of low training retention. You’ll also discover trends in technology and learning operations that leading employers are exploring to overcome these challenges for more impactful, integrated learning operations.

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The Findings

The global workplace training industry was valued at roughly $383 billion in 2023 and is forecast to exceed $400 billion in 2024. 

But the return on this significant investment is not always realised and survey respondents highlighted several challenges when it comes to workplace training: 

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Revealed: Key Pain Points

1. Retention and Application Rates: Only 30% of employees retain training content beyond a few months, highlighting a need for better reinforcement mechanisms.
2. Inefficiency in Learning Operations: 65% of respondents reported inefficiencies in their current training processes, citing redundancy and manual operations as major pain points.
3. Engagement Levels: Engagement in training programs is low, with 60% of respondents struggling to keep participation rates above 50%.
4. Personalised Learning Demand: 78% of executives indicated a strong need for more personalised learning solutions tailored to individual learner profiles to improve engagement and learning outcomes.
5. Content Creation Bottlenecks: 70% of L&D departments face significant challenges in content creation, affecting the timely rollout of new training programs.
6. Digital Adoption Barriers: 50% of organisations reported difficulties in adopting digital learning platforms, primarily due to integration issues and user resistance.

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The Human Condition: Limitations of Working Memory and the Impact on Workplace Training

The gap between training and application is not a reflection of the quality of training or the intentions of training providers. Rather, it’s a function of our human condition, the very nature of our brains:-

While a formidable biological computer with virtually unlimited storage, about 86 billion neurons and up to 1 quadrillion (1,000 trillion) connections, our brains have evolved mechanisms to help us manage the onslaught of stimuli we are confronted with every minute of every day, with alarming consequences for learning and training. 

For instance, our working memory, the cognitive system responsible for temporarily holding and processing information, has limited capacity. It can hold just 4-7 items at once for no more than 30 seconds. Instrumental in learning, reasoning, and comprehension, our working memory is vulnerable to overload if too much information is presented at once.

To prevent overload, we’re hardwired to filter stimuli, to focus on what we (or more accurately, our brains) deem important. This means we are prone to missing a lot of what goes on around us and, more importantly, have no idea that we are missing so much! This phenomenon, known as inattentional blindness, means we are ‘blind’ to up to 30% of what’s around us. Don’t believe us? Check out this famous Harvard University experiment.

The limitations of working memory are also described in the "forgetting curve", first identified by Hermann Ebbinghaus in the late 19th century. It illustrates how quickly information is lost over time if no effort is made to retain it. Ebbinghaus's research showed that, without reinforcement, we forget approximately 50% of new information within an hour, 70% within 24 hours, and 90% within a week (Edutopia)​​ (The Learning Guild)​.

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That means that in 2024 alone, corporates will collectively lose $360 billion dollars in workplace training investment to the forgetting curve, to say nothing of the cost of operational inefficiencies that result from employees failing to adhere to policies and procedures.

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Compounding Impact of Low Training Retention

The indirect costs of low training retention on operations, productivity, and employee morale, while harder to quantify, are equally alarming:

1. Operational Inefficiencies: Low training retention has widespread operational consequences, resulting in errors, repeated tasks, and lower quality of work, directly impacting operational efficiency and profitability, and disrupting workflows (McKinsey)​.

2. Low Employee Morale and Retention: When employees feel ill-equipped, their confidence and job satisfaction decline, leading to disengagement and higher turnover. This can create a vicious cycle - high turnover further strains resources and reduces overall morale​ (The Training Associates)​​ (McKinsey)​.

3. Increased Costs: Low training retention comes at the direct cost of conducting training as well as indirect costs associated with errors, rework, and lost productivity. Furthermore, high turnover rates resulting from poor training retention incur replacement recruitment and onboarding costs​ (Walden University)​​ (The Training Associates)​.

4. Time to Performance: Low training retention results in long ramp-times to peak performance and competency. The longer your ramp-time, the more ‘school fees’ you pay in the form of new employee salaries, in addition to direct training costs.

5. Opportunity Cost: Employees who can’t perform because they can’t remember their training compromise customer service, resulting in lost sales, customer churn, and poor net promotor scores (NPSs). In a market where it takes 12 positive experiences to make up for 1 negative experience, the consequences of inconsistent customer service are considerable.

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The question for Learning & Development is how do we overcome the limitations of working memory and maximise training retention for application?

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Overcoming the Forgetting Curve: Emerging Skills Development Trends

Our research revealed a number of emerging trends in workplace training geared to overcome the forgetting curve:

1. Technology and Neuroscience, Combined

These trends indicate a shift towards data-led training underpinned by technology and grounded in neuroscience:

1. Microlearning and Neuroscience: There is a growing interest in microlearning, which leverages neuroscience to enhance retention and engagement. Organisations are increasingly exploring bite-sized, interactive content to keep learners engaged.
2. Gamification and Interactive Content: Gamification is gaining traction as a method to increase engagement and motivation. Interactive content, including scenario-based learning, is being adopted to make learning more immersive.
3. Mobile Accessibility: As mobile device usage increases, there is a shift towards mobile-friendly learning platforms. This trend supports learning on the go and accommodates diverse learning environments.
4. Data-Driven Learning: Organisations increasingly use data analytics to track learning progress, identify knowledge gaps, and personalise learning experiences. This data-driven approach enhances the effectiveness of training programs.
5. Integrated Learning Ecosystems: There is a movement towards integrating e-learning platforms and learning management systems (LMS) with other enterprise systems to create a seamless learning ecosystem. This integration facilitates better tracking, reporting, and alignment with business goals.

2. Dismantling Silos for Integrated Learning Operations

Our research also revealed a divergence in priorities and pain points by function and department. Adopting a collaborative, integrated Learning Operations framework helps dismantle these silos and provides a consolidated ‘true north’ for better business outcomes and training impact.

‍Divergent Workplace Training Pain Points and Priorities by Department

‍Learning and Development (L&D): The need for effective engagement strategies and scalable content creation directly impacts L&D’s ability to deliver successful training outcomes:

• Personalised Learning: L&D managers highlight the challenge of providing personalised learning experiences tailored to individual needs.‍
• Retention and Application of Knowledge: A common issue cited was the gap between learning and practical application, with employees struggling to retain and recall training.‍
• Engagement and Incentivisation: L&D specialists frequently mentioned difficulties maintaining learner engagement and motivation.‍
• Content Creation and Scalability: Creating engaging and relevant content quickly and at scale was a major concern.

‍Human Resources (HR): Efficient onboarding processes and effective development and succession planning are vital for organisational stability and growth:

• Onboarding and Retention: HR managers often face challenges in onboarding new employees efficiently and retaining them long-term.
• Operational Efficiency: Ensuring employees are productive and up-to-speed quickly is a critical issue.
• Succession Planning and Reporting: Managing succession planning and generating accurate reports for training effectiveness is a significant concern.

Operations: Training must translate into improved performance and efficiency. Flexible and timely training that aligns with operational demands is crucial for minimising disruptions and enhancing productivity:

• Skill Application Gap: Despite training, there is often a significant gap in applying learned skills on the job, affecting performance and efficiency.
• Training Scheduling and Flexibility: Difficulty in scheduling training sessions outside business hours and ensuring flexibility in training delivery.
• Content Management Flexibility: The need for platforms that allow quick updates to training content to keep pace with business changes.

Technology and Digital Transformation: Effective adoption and integration of digital learning platforms are essential for modernising training methods and improving overall learning outcomes:

• Digital Adoption and Integration: Technology officers cite challenges in adopting new digital learning platforms and integrating them with existing systems.
• Accessibility and User Engagement: Ensuring that digital platforms are accessible to all employees and engaging enough to maintain participation.

These divergent priorities emphasise the need for tailored learning and integrated learning operations. Learning Operations (LearnOps) is a new paradigm in workplace training, a closed-loop system for agile training aligned with strategic objectives. Driven by data and underpinned by technology, LearnOps aims to dismantle L&D and Operations silos for integrated, data-led training interventions:

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Reinforced micro-learning platforms with robust reporting support a LearnOps model, taking the guesswork out of measuring and optimising training impact. Your micro-learning platform should include advanced analytics that yields actionable insights from measurable learner engagement and knowledge retention levels.

We've spent the better part of the last decade developing a consumer-grade, multi-award-winning reinforced micro-learning platform, centred around measuring and maximising training retention:

A full-service training solution provider, we help our clients transform organisational training for operational optimisation by combining technology, neuroscience, learning design and content creation services. Local support and dedicated customer success mean that with Digemy, you have a true partner in training operations.

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CONCLUSION

In conclusion, workplace training has the power to elevate customer and employee experiences, but faces significant challenges, including low retention, application and engagement rates, resulting in operational inefficiencies. However, these can be overcome through the integration of technology and neuroscience, within a comprehensive Learning Operations (LearnOps) framework. 

By leveraging reinforced microlearning, gamification, mobile accessibility, data-driven insights, and integrated learning ecosystems, organisations can enhance training retention and operational efficiency.

Digemy’s cutting-edge reinforced micro-learning platform, backed by neuroscience and robust analytics, is designed to overcome these challenges. Book a demo to explore how our solutions can transform your learning and development programs and drive measurable improvements.

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