How to prove the ROI of career development to your CFO

If you want to retain talent, rather than seeing them skipping off into the sunset to apply their skills and experience at a competitor, then the key to success is career development. It’s a false economy to employ staff who then don’t learn, progress, and grow within your organisation.

Think of it like buying a cheap, second hand car. You do this to save money in the short term. Which works… for a while. But the car keeps breaking down and costs much more in trips to the garage for repairs than a more expensive car which wouldn’t have had all these problems in the first place. So you end up forking out more on the cheap car than you would if you’d spent that little bit extra initially.

When companies skip training staff to avoid costs, employees are less skilled, potentially make more errors, aren’t as efficient, or leave for better opportunities elsewhere. Replacing them ends up costing more than training them well in the first place.

Career development matters because:

• The cost of losing employees and hiring replacements is substantial, often exceeding any outlay for the training and development of existing staff.
• Investing in training and upskilling, including outplacement and career path frameworks, not only supports individual careers, but also helps with organisational productivity, work culture, staff retention, and profit margins.
• For HR departments and business leaders, quantifying those returns, such as savings, productivity gains, reduced turnover, and improved employee engagement, translates directly into a stronger business case for budget allocation.

Let’s look at the cost of replacing staff versus the cost of training and developing staff who are already working for your company.

• A round-up across the UK from the past few years reveals that the “average cost of turnover per employee (earning £25,000 a year or more)” is estimated at £30,614.
• For a lot of businesses, the cost of replacing an employee is £30,000 on average, with entry-level employees to be replaced costing between £12,000 and £15,000, while replacing a senior member of staff could be as much as £50,000. This covers areas such as recruitment, onboarding, and lost productivity while the new employee learns their new role, instead of training someone internally.
• For specialised and leadership roles, shelling out for replacements is high because of onboarding delays, recruitment fees, disruption, and the loss of expert knowledge.

• According to the Employer Skills Survey in 2024, which surveyed over 22,000 employers in the UK, training spend per employee stood at a modest £1,700 a year, a drop from £1,960 in 2022.
• Another study, with the focus on HR and management roles, showed that training an entry-level role up to a HR Manager level costs just £3,107 – a steal compared to the higher cost of replacing the position, at 76% cheaper.
• If done effectively, undertaking upskilling and reskilling of the workforce can boost productivity by between 6% and 12%, according to large-scale UK data analysis.

The ROI (return on investment) is key across all parts of a business, whether that is related to profit margins, spending on capital equipment, or updating tech – and certainly when it comes to staff members. In this article, we’re concentrating on how you can prove ROI on career development to the Chief Financial Officer.

So let’s look at the evidence from recent data and statistics.

1. The productivity gains achieved from upskilling and reskilling are there for all to see in a FutureSavvy report which estimates that 75% of reskilling programmes deliver a positive ROI for employers, with many programmes delivering positive ROI within just a few months.
2. Internal training is seen as a less risky and more cost-effective approach than being on a constant roll of trying to entice and hire new members of staff, according to the same survey.
3. When ROI is concentrated on the development of leaders, UK organisations achieve an average of £2.86 return for every £1 invested, with some leadership training programmes looking at a 186% increase in value.
4. A 2025 Keep Britain Working review reveals that investing in wellbeing, mental health, and support programmes, which invariably relate to career development and staff retention strategies, yield returns of between £4.70 and £8 for every £1 spent. It does depend on the type of intervention used, but that’s a huge ROI in career development.
5. The same report shows that having physical health interventions returns even higher rewards, of between £11 and £99 for every £1 invested, depending on what the interventions are.
6. A Good Work Index report from the Chartered Institute of Personnel & Development (CIPD) illustrates that investing in managerial capability, employee health, and wellbeing is tied in with improved performance, effort, retention, and innovation.
7. Focusing your staff on training also leads to a reduction in absenteeism and presenteeism, which is when employees are at work but aren’t fully productive, according to a Deloitte survey cited in Work Life.

All of the above points show that it isn’t just a financial return on investment that’s important for employers and employees. Other ROI benefits include increased morale, higher employee engagement, improved wellbeing and culture, decreased absence, and a lower staff turnover, all of which enhance long-term organisational resilience.

It’s all about how you present your findings when proving the ROI of career development to the CFO to show that it’s a vital and strategic investment, and not just an added bonus.

Emphasise:

• More cost effective – the cost of replacing an employer can be anywhere between £12,000 and £50,000, depending on their level of expertise, whereas the cost to upskill an existing employee is between £1,500 and £3,107. There’s a no brainer right there.
• Reduced staff turnover – when training and clear career progression frameworks are part of the work culture, it instils a sense of pride in staff, avoiding those hidden costs that come with onboarding and offboarding, decreased productivity, and disruption to the business.
• Productivity gains – reskilling can boost productivity and deliver performance gains from the development of leaders.
• Increased employee engagement – workers appreciate being given development opportunities as it shows them that the business cares about their welfare and about furthering their career.
• Decrease in absence – having a mentally healthier and more robust workforce, because wellbeing initiatives have been introduced, leads to a strong ROI for employers while reducing costs connected to absenteeism, employee burnout, poor mental health, and low engagement.

When proving the ROI of career development, it’s wise to pre-empt any objections that might be flung in your direction. Let’s look at the possible arguments you might come up against, and how to deal with them in a professional manner.

This article has already detailed how the costs of training are substantially lower than the costs of replacing staff, and you can measure impact through metrics such as retention rates, time-to-productivity, internal promotions, staff engagement, and exit interviews.

Data shows that engaged employees, who see a career framework within the company, are more likely to remain, with exit rates reducing when businesses offer growth, development opportunities, and internal mobility.

Leadership development and wellbeing initiatives can deliver both short-term (reduced turnover and increased engagement) and long-term gains (boost to the work culture, talent pipeline, and skills resilience).

If companies neglect investing in their workforce with training and development plans, they face significant risk due to talent shortages across many sectors, the rising cost of replacement, and rapid changes in required and relevant skills.

It pays to upskill existing staff, and those businesses that do will remain one step ahead of their competitors. The data shows this, from retention savings to productivity gains and improved workforce stability.

If your organisation is considering a shake-up in the workforce, contact us at the earliest opportunity to find out more about career frameworks, outplacement, and coaching. 

Elizabeth Openshaw

Elizabeth is a diligent, articulate, and versatile Blogger and CV Consultant with over 13 years of experience in the job search sector, including extensive expertise in outplacement services and CV reviews, supporting job seekers and all of those involved in the recruitment process. With a personable and self-assured outlook, Elizabeth consistently produces work to a high standard and hits deadlines 100% of the time. Showcases excellent organisational and time management skills, proven by 17 years as a Journalist on numerous national publications including as Features Editor on a monthly glossy magazine and as a regular contributor to Men’s Health, Slimming World and Candis. As Director of her own company, OpenDoor CV Expertise Ltd, Elizabeth displays a high level of professionalism, demonstrated by the positive recommendations and testimonials from many previous clients. Additionally, she is an active member of both the British Association of CV Writers (BACVW) and the Institute of Employability Professionals (IEP), supporting people to gain work, progress in work, and retain work.