Identified benefits include better L&D team productivity, 20% faster new-hire onboarding, more efficient upskilling, and up to five times better employee retention.
Degreed, a pioneer in learning experience for eight million users, today shared the results of a commissioned Total Economic ImpactTM (TEI) study of its Learning Experience Platform (LXP). The study, conducted by Forrester Consulting found that organizations using Degreed’s LXP experienced faster time-to-productivity for new employees, democratization of learning across the workforce, improved upskilling, and lower learning content costs. The potential total return-on-investment calculated in the study was 312%, with a net present value (NPV) of $4.69M and payback in under six months. Read the full study here.
“Our customers choose Degreed alongside their LMSs and HCM systems to build the skills their people need faster and more efficiently. We believe this Total Economic ImpactTM study highlights how Degreed’s more open, collaborative learning experience can create value at every stage of the employee lifecycle — from faster new hire onboarding to more efficient upskilling and lower turnover in key roles, not to mention reduced content spend and higher productivity for L&D teams,” said Todd Tauber, SVP Strategy at Degreed.
The study found organizations using Degreed had a 20% faster time-to-productivity for new employees due to a more consistent onboarding process, centered around high quality content and easily navigated learning pathways.
According to the study, “Interviewees’ organizations used Degreed to upskill employees and improve their organizations’ performance in a number of areas, including customer satisfaction and retention, data storage and analysis, product support, diversity and inclusion, leadership and management, and technology changes.”
One professional services organization was able to make onboarding more relevant and timely for new starters, where previously it depended on live instructors at synchronous training sessions, which delayed onboarding timelines and made the experience inconsistent.
Another customer commented on the benefits of the LXP’s open ecosystem, stating, “Degreed is the primary learning interface for us and it caters to the diverse needs of our employees, as well as our organization. With Degreed, we've achieved targeted and business-focused skill development.”
The improved upskilling of current employees across all respondents was 35% for employees and 25% for trainers because of the single gateway for all learning that Degreed provides. The study additionally found that Degreed led to better retention in key roles, decreasing from 10% to 2%, particularly in leadership positions and those who regularly deal with new challenges.
There were additional unquantified benefits that were identified by the study including bringing a social, consumer-grade learning experience to corporate learning, leading to higher levels of engagement, and the democratization of learning, particularly for frontline workers, those in new regions, and employees speaking different languages.
Interviewees also said that Degreed was one of their organization’s core technologies that provided the agility needed to successfully operate through remote work.
To read the full study, click here.
TEI Framework And Methodology
From the information provided in the interviews, Forrester constructed a Total Economic ImpactTM framework for those organizations considering an investment in Degreed.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Degreed can have on an organization.