In case you didn’t notice it, there has been a monumental shift in the learning market, with analysts beginning to diagnose a new trend.
- The Sierra Cedar 2018-2019 HR Systems Survey white paper cites Learning Experience Platforms (LXP) as “an emerging trend in the Talent Management application space.”
- Brandon Hall is calling it “the beginning of a movement that has been set in permanent motion to transform how organizations look at learning and improving individual and organizational performance.”
- Josh Bersin says the “potential LXP market is huge,” and is currently valued at $200-250 million and growing at 200% or more.
- Craig Weiss, learning technology consultant, calls the category, “Learning Engagement Platform,” and calls it a stronger product [than an LMS] in an inevitably expanding niche.”
- In its 2018 Hype Cycle for HCM Technology, Gartner states, “Learning Productivity Platforms” has just entered the innovation trigger which occurs when there is a period of rapid development and growing interest. The market has finally been validated and defined and is expected to reach mainstream adoption in the next 5-10 years.”
Though analysts can’t agree on a name for the category, they all agree that there is something new and big here.
Engagement is a Prerequisite, Not the End Goal
Analysts remain focused on the front-end portal, the employee experience, and engagement. For many in corporate learning that are utilizing legacy Learning Management Systems, it’s easy to get caught up in the idea that the end goal of all learning is engagement, measured by time, activity, and satisfaction.
If your company is like most, voluntary usage of learning systems might average 4-6% in a given month — anemic by almost any standard. Having 25% of employees spend 3-4 hours learning every week at HP Inc., or getting a 69 Net Promoter Score at T-Mobile would seem to be goals worth striving for. And they are. Without engagement, nothing else is possible.
We agree that something huge is going on here, but it goes deeper than the surface level experience analysts are seeing. There is plumbing and wiring hidden under the surface, and driving this experience behind the scenes is a robust skills data set that matches people to what they need to learn, driving more engagement.
We believe a new operating system for learning is emerging that will enable companies to make talent decisions.
It’s what you do with that engagement that matters
Engagement is not enough. It doesn’t mean that outcomes are being created, or that value is being generated for the business. It’s a bit like how startups try to grow revenues without any appreciation for the value of profits. These companies get caught up in vanity metrics because it makes them feel like they are making progress, but they are not actually building a sustainable business. In the same way, engagement indicates that you are doing something right, but it’s not the complete story.
It’s what you do with that engagement that matters. We’ve known all along that engagement matters most when it aligns to greater performance, opportunity, and achievement for all parties, like when a company is filling hard-to-fill roles and retaining employees longer; when employees are gaining skills that are valuable to their careers, and to the competitiveness of their firms.
To achieve this goal, we made a major investment in technology, data science, and machine learning. We’ve spent the last few years, creating a framework that creates data about what can people do, how well they can do it, and matches them to learning opportunities that will help them grow their career and contribute to organizational growth.
This is something that no one else is doing today and it is already starting to yield substantial value for our clients. At Unilever, active learners are 24.5% more likely to receive 4- and 5-star performance ratings, get promoted 10% faster, and are 25% more likely to be targeted for retention efforts.
The linchpin of this framework is Skills. Knowing the skills your company has is exponentially more valuable than knowing how many hours employees spent learning. It becomes meaningful to the entire organization, especially to the C-Suite, who can leverage this data for strategic initiatives like product innovation, entering new markets, and M&A, all of which require a talent pool armed with the latest and greatest skills.
It’s time to elevate learning
To that end, we’re making a series of other exciting Skills-related updates to our platform:
- Skill Review to assess who has what skills across an entire company
- Team Pages and Individual Development Plans to drive employee development at a grassroots level
- Career Pathing to help people grow while aligning careers with company strategy
All these updates are intended to build upon what we’ve already achieved and continue to elevate learning — to make it more strategic to business units and to turn it into a competitive advantage. To redirect the way we talk about learning outcomes — leaving behind metrics like satisfaction and activity, and putting new a focus on internal mobility, retention, and performance. All these things come down to helping your business do a better job of developing your talent.
With rapidly changing business landscapes in virtually every industry, we believe learning is one of the greatest internal investment opportunities of our time. Learning drives the creation of skills, and skills are what drives corporate competitive advantage. It’s our mission to make learning matter and empower organizations to make skills the center of their people operations and create a path for every person to own their future while helping their company succeed in the marketplace. These recent upgrades to our platform are a step in the direction in this mission.