Three quarters of HR leaders say economy is impacting L&D strategy, survey reveals

Traditionally, the promise of climbing the career ladder, with regular promotions and salary increases, was enough to motivate an employee to work hard and stay loyal to their employer. That’s simply not the case today, as Gen Z enters the workplace with very different expectations, and it's not just the younger generation. Employees want to feel valued, to be making a difference, and to have the flexibility to balance the needs of their family and home lives. To attract, retain, and unlock the full potential of employees, companies simply cannot afford not to invest in the personal and professional development of their people. The challenge is to continue delivering to shareholders in a difficult economic climate, while investing in the skills of the future and in the employee experience to ensure long-term competitiveness.

The power of professional development should never be underestimated. Analysis of hundreds of thousands of reviews posted on Glassdoor from employees across the UK, US, Canada, France and Germany shows that access to learning and development within a company is one of the key drivers of employee satisfaction. On top of that, compensation and benefits rank as the least important factor when it comes to workplace happiness. Training and upskilling within a company is important as it keeps employees motivated and their productivity levels high.

As a management, HR and mental health training provider for SMEs, we have never been busier. At the end of 2022, we had a healthy pipeline of training bookings into mid-2023. Employers recognise that investing in training is one element of an excellent retention strategy, and employees don't want it, they expect it.

I think employees are valuing training and upskilling more because it offers the opportunity to progress in their current organisation but also gives them the chance to develop their transferable skills. They may see this as an insurance policy to become more marketable in case they need to move in the future. It gives them options. The economy and budget cuts haven’t really impacted the work I do yet. In a way, it’s created more opportunities. I’ve had to review how I deliver my training and consultancy work. It used to be all face-to-face, then went totally online and now it’s about 80% online and 20% face-to-face. That works very well for me. I’m delivering globally which I didn’t do before (including 4.30am starts for SE Asia) and also delivering more short and focused sessions as people don’t want to take a day out for training now.

I don't believe that the budget cuts are having a significant impact on L&D, in my experience, it’s the opposite. We're seeing more investment in employees, not only in leadership but across the board. Cuts to development initiatives hinder employers ability to attract and retain top talent. Budget cuts present HR with the opportunity to embrace creativity, by thinking strategically about team investment and knowledge sharing.

Investing in skills and knowledge increases productivity and satisfaction. Engaging your people through continuous learning is a powerful tool. We find fulfilment and advancement opportunities create more value than financial gain. We find development matters more to employees than money, even if a recession hits. Development needs to consider soft skills as leaders look to build trust and resilience.