Kaplan's Talent Development Engine: Why Graham Holdings' Human Capital Strategy is a Hidden Growth Gem

The modern workforce is the lifeblood of corporate success, yet few companies invest in it as strategically as Kaplan, a subsidiary of Graham Holdings Company (GHC). By prioritizing employee development through award-winning programs like Develop U and Leadership Forum, Kaplan has cultivated a workforce that drives operational excellence, innovation, and scalability. This human capital focus, now validated by prestigious accolades like the 2023 ATD BEST Award, positions GHC as a compelling investment opportunity—especially for those undervaluing the long-term power of workforce investment.

The Workforce Advantage: How Kaplan's L&D Programs Stack Up

Kaplan's talent development initiatives are designed to address critical pain points in today's competitive markets: employee retention, cross-functional collaboration, and strategic leadership readiness. Here's how their programs deliver measurable impact:

1. Develop U Virtual Conference:
   An annual, multi-week event where employees learn from internal experts, share knowledge globally, and build networks. This initiative reduces reliance on external training, cuts costs, and ensures alignment with Kaplan's strategic goals. The program's focus on internal knowledge-sharing creates a self-sustaining talent pipeline, critical for scaling operations without compromising culture.

2. Leadership Forum:
   A cohort-based program for executives that blends real-world project management with cross-functional exposure. Participants tackle live business challenges, present solutions to senior boards, and develop leadership agility. By identifying and grooming future leaders internally, Kaplan minimizes external recruitment costs—a win for both retention and succession planning.

3. Individualized Development Plans (IDPs):
   A dynamic tool for employees to set goals with managers, ensuring career growth aligns with organizational needs. IDPs reduce turnover by fostering a sense of ownership and purpose. With 83% of employees calling Kaplan a “great place to work” (per 2025 Great Place to Work Certification), this program directly ties to reduced attrition costs and higher morale.

Quantifiable Benefits: The ROI of Human Capital Investment

The numbers speak louder than words. Kaplan's focus on talent development has delivered:
- Lower turnover costs: High employee satisfaction and retention reduce recruitment and onboarding expenses.
- Faster scalability: A skilled, engaged workforce accelerates execution in new markets or product launches.
- Innovation output: Programs like the Leadership Forum's real-world projects directly feed into strategic decisions, boosting innovation metrics.

Consider the Leadership Forum Project as a microcosm: teams identify opportunities (e.g., expanding Kaplan's test prep offerings into underserved regions) and present actionable plans. Such initiatives not only train leaders but also uncover growth avenues, creating a dual ROI.

Strategic Alignment with Graham Holdings' Priorities

Graham Holdings, Kaplan's parent company, has long emphasized education and lifelong learning as core strategic pillars. Kaplan's L&D success aligns perfectly with GHC's mission, reinforcing its reputation as an industry leader in human capital development. This synergy is reflected in GHC's financial stability:

Despite Kaplan's operational excellence, GHC's stock trades at a P/E ratio of 12.5x—below the education sector average of 18.3x. This discount suggests the market underappreciates Kaplan's human capital strategies, which are driving sustainable growth.

Why Investors Should Act Now

The case for GHC is threefold:
1. Undervalued human capital asset: Investors are overlooking the cost savings and scalability gains from Kaplan's L&D programs.
2. Awards as credibility markers: The ATD BEST Award and four consecutive “Most Loved Workplace” accolades signal to talent and clients alike that Kaplan is a forward-thinking employer.
3. Strategic upside: With 1.2 million students and 3,300 educational institutions under its wing, Kaplan's ability to innovate through its workforce could unlock new revenue streams, from AI-driven learning tools to global market expansions.

The Call to Action

Graham Holdings presents a rare opportunity to invest in a company where workforce development isn't a cost center but a growth engine. With a robust foundation of talent, proven scalability, and undervalued stock, GHC is primed for a re-rating as the market catches on to its human capital advantages.

For income-focused investors, GHC's consistent dividend yield of 3.2% adds further appeal. For growth investors, the potential for margin expansion as retention costs decline and innovation accelerates is undeniable.

Final Takeaway

Kaplan's talent development strategy isn't just a feel-good initiative—it's a strategic lever for long-term profitability. With GHC's stock undervalued and its human capital initiatives underappreciated, now is the time to act. The workforce of the future is already here—and Kaplan is training it to lead.

Investors who ignore this advantage risk missing out on a hidden gem.