By strategyandbusiness.net

The McKinsey Global Institute used big data to examine 4 million actual work histories of workers from the United States, Germany, United Kingdom and India and found that meaningful work experience is critical to human resource development.

In this way, it is determined that an effective organization prioritizes learning and development can have a bigger impact whether a person reaches his potential or not.

“Human resources is often studied in the context of how investments in early childhood development, education, and health care translate into a more productive workforce. But human capital, at the end of the day, is the potential in every individual”, adds the report from the World Economic Forum.

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Based on this, a study prepared by the McKinsey Global Institute shows that:

Work experience is a more important income driver for workers with lower education. People cannot control factors such as family education or the quality of their local schools, but they can exercise the degree of choice in the jobs they pursue and the organizations they join, and those choices are very important to the people they start with. low paying jobs.

Work experience accounts for between 40% and 43% of median lifetime earnings in the US, Germany and the UK, but 58% in India, where there are fewer people with higher education. In general, people without a college degree who start low-paying jobs rely more on work experience.

Role reversal can be helpful, especially when people make bold moves. In the McKinsey Global Institute sample, roughly a third of workers in the United States, Germany, and the United Kingdom, and nearly a quarter of workers in India, are on track to move up a quintile or more in forecasted earnings. from the very beginning of his career. Skills gained from experience account for 60% to 80% of lifetime earnings for those who go up, but only 35% to 55% for those who stay the same or go down.

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Individuals benefit from early experience in effective organizations. Employers who do well on metrics related to organizational health, training, and internal promotion seem to push people forward. Their employees are more likely to follow upward mobility. Controlling job differences, time spent early in a career in an organization that prioritizes learning and development is one of the most influential factors in determining a person’s future prospects.

For businesses, the data provides a warning: 80% of job changes involve switching to a new employer. This represents a great missed opportunity. Employees understand the value of learning and development, and feel increasingly empowered to turn to companies that offer them the opportunity to learn new skills and level up. Companies, many of which face increased attrition and staff shortages, must respond.