Results from the Total Economic Impact™ (TEI) study revealed a significant increase in employee productivity, reduction in costly turnover and reduced audit penalties
MOUNTAIN VIEW, Calif., November 15, 2022 /PRNewswire/ — Digital Development Platform audacity today announced a new study commissioned by Forrester Consulting, which examined the potential return on investment (ROI) and business benefits that financial services organizations can see by deploying Udacity’s technical enhancement solution for enterprises.
The results of the Total Economic Impact™ (TEI) study revealed a 234% return on investment, a significant increase in productivity in the skilled talent pool, a reduction in costly staff turnover, and improvements in regulatory and compliance records, creating a substantial reduction in audit penalties for the respondent’s organization.
To conduct the study and project this analysis over three years, Forrester interviewed a representative from a financial services organization who has experience with Udacity. Prior to adopting Udacity, the organization that participated in this study used a combination of learning resources to facilitate skill development in its technical and non-technical workforce. This ad hoc approach included digital platforms, printed materials and in-person classes.
The main conclusions of this study are as follows:
- Increased productivity of qualified personnel, resulting in a three-year saving of $116.1M. With Udacity’s Nanodegree offerings, an organization’s highly skilled employees can complete a greater variety of tasks in less time, saving the organization significant resources. According to the interviewee, each upgraded graduate demonstrates an efficiency gain of approximately 20%.
- A 20% decrease in employee turnover, $25.9M in savings. With the adoption of Udacity for development needs, employees learn new skills, which helps them stay relevant and help the organization achieve its business goals. The organization’s investment in its workforce leads to a correlated increase in employee engagement and improved work experience, resulting in a 20% reduction in employee turnover compared to to its previous environment and a total three-year risk-adjusted savings of $25.9M.
- A 50% reduction in audit costs and regulatory compliance penalties, resulting in $6.7M in savings. Financial services organizations must meet auditing, regulatory, and compliance requirements or face steep fines and penalties. Modernizing skills enhancement through a single talent transformation platform enables an organization to standardize compliance training and improve its audit record by 50%. Elimination of one failed audit per year at an average penalty cost of $3 millionthe organization achieves a risk-adjusted benefit savings over three years of $6.7M.
“We engaged Forrester Consulting in Q3 2022 to better understand the benefits financial services organizations can expect from investing in Udacity. We are extremely pleased with the findings of the Forrester study,” said Sebastien Thrun, Founder and Executive Chairman of Udacity. “This study demonstrates the clear return on investment and outsized business impact of improving technical skills, as well as its connection to the industry’s top business priorities.”
Other business benefits seen include ease of implementation, improved employee experience, and more secure information management. Udacity provides an effective, easy-to-implement solution, and eliminates the need for in-person training, saving travel and scheduling resources. Graduates of Udacity’s Nanodegree programs value the opportunity to develop their skills and recognize the organization’s investment in their career path, and Udacity mitigates security risks through the design of its platform, enabling course participants to access content and collaborate securely.
To learn more or access the full Total Economic Impact™ (TEI) study, click this link.
Udacity is changing lives, businesses and nations through a radical transformation of talent in digital technologies. Udacity’s global online talent transformation platform focuses on in-demand digital technologies, mentor support, and project-based learning taught by industry experts. Programs include real-world content for professional skills in artificial intelligence, machine learning, data science, autonomous systems, cloud computing, among other disciplines. Udacity has more than 100 corporate clients, including Airbus, Bertelsmann, BNP Paribas, Leidos, Mazda and the United States Air Force. Udacity works with more than 200 global industry partners, including Google, Mercedes-Benz, and NVIDIA, to power technical education. Based at Mountain View, California.the private company operates in the UK, Egypt, Germany, Indiaand the United Arab Emirates. Udacity raised $163 million in funding to date from investors such as Bertelsmann, Andreessen Horowitz, Charles River Ventures and Drive Capital. For more information, please visit www.udacity.com.