Current realities that are shaping the L&D Landscape

Learning is often viewed by business leaders as an extra benefit or perk for their employees rather than an essential part of their overall experience. However, workplace learning should be seen as something other than merely an add-on, as it plays a crucial role in shaping the employee experience. Additionally, it is a vital aspect of the organization's strategy that can significantly influence the business's success. Below are the four realities that are changing the Learning and Development Landscape which needs to be addressed strategically.

 

1. Layoffs and Hiring Freeze:

Layoffs and hiring freezes have led to a shift in the way corporate organizations approach learning and development. With limited hiring options, companies have had to focus on reskilling and upskilling their existing workforce to fill talent gaps and achieve business growth objectives. As a result, there has been a greater emphasis on investing in the L&D journey of their employees. Companies are recognizing the need to develop a system that is as proficient and comprehensive as talent acquisition departments to identify skill gaps among current employees. This change in focus is enabling organizations to retain their talented employees and fill critical positions with internal candidates, saving them the cost of hiring externally. In today's hiring landscape, investing in L&D initiatives and internal mobility has become more crucial than ever before for companies to thrive and achieve long-term success.

 

2. Increasing Skill gap within Organizations:

The growing skill gap has resulted in staffing difficulties, making it increasingly challenging for organizations to hire and retain skilled employees. In Wiley's latest annual Closing the Skills Gap Report conducted among HR professionals, 69% of them reported a skills gap within their company, resulting in staffing challenges and necessitating employee reskilling. 

                                  

3. Impact of Skill Gap

The growing skill gap within organizations has necessitated a greater focus on learning and development. Companies are investing in more proficient and comprehensive L&D programs to address the talent shortage and fill critical positions with internal candidates. This approach improves efficiency, profitability, and competitiveness while creating a culture of continuous learning and development. The impact of the skill gap makes L&D a crucial aspect of a company's strategy for long-term success.

4. Changing Aspirations of Employees
L&D is no more a company-driven initiative in today's world. There is a noticeable trend toward individuals striving for career growth and harboring higher aspirations. Although this may partly be attributable to layoffs and hiring freezes across various industries, the growing significance of skills and expertise means that employees are more inclined to prioritize career advancement and developmental opportunities. In Great Learning's 2023 report, a record high of 83% of Indian professionals plan to acquire new skills, up from 79% the previous year.

Key L&D Priorities for HR Leaders in 2023

L&D is leveraging its newfound influence to enhance individuals and their skill sets for driving business impact. LinkedIn's report highlighted L&D's growing significance in the previous year as it assumes a more central, strategic, and cross-functional role in organizations. As per the LinkedIn Workplace Learning Report 2023 learnings, leaders are now utilizing their voices to align people and business strategies.

So, we’ve listed down below the top 4 focus area of L&D in 2023 for HR Leaders:

 

1. Aligning L&D outcomes to business goals

A people-centric culture acknowledges that the organization's success is intertwined with its employees' success. Consequently, the employee experience is designed with a focus on human needs, from the onboarding process to the exit procedure.

According to LinkedIn, 83% of organizations strive to establish a more people-centric culture, and 81% of L&D departments actively contribute to this objective.

 

As an increasing number of companies come to terms with unprecedented challenges such as talent disruption, inflation, and skills shortages necessitating fresh skill sets, L&D has assumed a more critical role than ever before in providing assistance.

2. Upskilling Employees
LinkedIn report states that job skill requirements have shifted approximately 25% since 2015, and this number is projected to double by 2027. In this context, 89% of L&D professionals believe that proactively developing employees' skill sets will enable them to navigate the constantly evolving future of work more effectively. 

As per the Great Learning Report 2023, upskilling has facilitated career advancement within their own organizations for 43% of professionals. Additionally, 23% were able to transition into a new domain, and 18% were able to secure new employment opportunities.

3. Creating a culture of learning
Although many leaders recognize the importance of upskilling and reskilling initiatives, progress has been slow. LinkedIn statistics show that despite a slight increase in progress between 2022 and 2023, organizations have yet to make significant advancements. In fact, the percentage of organizations that reached the late stages of implementation actually decreased. In order to achieve true skills agility, organizations must also consider making cultural changes that enable more individuals to participate.

4. Improving Employee Retention
Employee tenure is too closely tied to growth opportunities. A report shows that Career development has been identified as the top factor affecting employee retention for 10 consecutive years. Employees who perceive that their company offers them space to expand their skills and knowledge are likely to stay with the organization.

How prepared are current organizations for L&D?

 

While L&D has become crucial for an organization to achieve its growth objective, it's essential to audit its readiness to achieve outcomes. Here are some common challenges organizations are facing in today's time.

1. Lack of benchmarks and initiatives:

The best way to validate a job candidate's skills is still evolving. Wiley's Closing Skill Gap 2023 report shows that bridging the skill gap is difficult due to a lack of employee development initiatives (41%) and in-house training resources (38%). Many organizations also lack leadership support or awareness about skill disparities (36%). According to PwC Global, workers want to reskill. A vast majority of 77% are willing to acquire new skills or undergo complete retraining but need to know the exact gaps they need to bridge.

2. Need for learning agility-oriented culture:

The ability to maintain business continuity and the learning agility of employees are closely related. Organizations need to be capable of withstanding ambiguity and making decisions amid uncertain circumstances. When executives and leaders show a keen interest in workplace learning, they foster a culture where the ongoing development of skills is part of employees' everyday roles and responsibilities.

Equipping employees with resources to promote their career growth and providing opportunities for internal movement enhances workforce competencies and boosts employee engagement. In a study of 3 million workers, career development emerged as a top driver of employee engagement.

 

Companies’ main concern in 2023 around retaining current employees revolves around upskilling & reskilling for evolving roles and having internal growth opportunities and career development.

 

3. Increase in focused investments:

Investing in L&D measures means nurturing talent from within and promoting employees' career growth. While this may require allocating resources such as time and money, the same is valid for hiring new talent to meet organizational needs. As L&D is well-positioned to make a significant impact, the 2023 budget outlook appears to be relatively optimistic.

 

How can L&D leverage existing TA practices to win?

 

Sharing insights and collaborating on developing and sourcing internal talent can drive success for both L&D and Talent Acquisition. While Talent Acquisition establishes the culture and process for internal hiring, emphasizing the richness of the existing talent pool, L&D provides skill-building paths and resources aligned with business needs and employee career goals. Connecting with Talent Acquisition can help L&D ignite more mobility within the organization.

 

"Productivity and efficiency are really important KPIs for us. We have to ensure that even if we bring on board one new hire, we have to get it right. Actionable intelligence on our talent is crucial for us in order to make effective decisions, be it for hiring or identifying specific L&D requirements for internal employees." - Sunil Naik, Vice President HR, DHL Global Forwarding

Here are several ways in which Talent Acquisition and L&D (Learning and Development) can be collaborative:

• Identify high-potential employees: Talent intelligence can help organizations identify high-potential employees who are most likely to succeed in leadership positions or take on new roles. By identifying these employees early on, organizations can invest in their development and provide them with opportunities for growth and advancement.
  
  
• Understand skill gaps: Talent intelligence can help organizations understand the skill gaps within their workforce. The gaps in skills and competencies can no longer rely on subjective reporting by employees or their managers but needs hard data to plan personalized learning journeys. By identifying these gaps, organizations can create targeted L&D programs to help employees develop the skills they need to succeed in their current roles or prepare for future ones.
  
  
• Facilitate talent mobility: Talent intelligence can help organizations identify employees who have the potential to succeed in different roles or departments. By facilitating talent mobility, organizations can create opportunities for employees to develop new skills and gain exposure to different parts of the business.
  
  
• Build succession plans: Talent intelligence can help organizations build succession plans by identifying employees who have the potential to take on critical roles in the future. By building a talent pipeline, organizations can ensure that they have the right people to drive the business forward.

Way Forward

Using a talent intelligence tool like Unberry, organizations can plan internal team mobility and learning and development (L&D) initiatives. By leveraging talent insights gained through Unberry, organizations can gain a deeper understanding of the skills and potential of their employees, which can inform decisions around career development, talent mobility, and L&D investments.

 

Overall, talent intelligence can help organizations make more informed decisions around internal team mobility and L&D initiatives. By collaborating, talent acquisition and L&D can ensure that the right candidates are selected for the right roles and that employees are provided with the training and development they need to succeed in those roles, resulting in a stronger and more effective workforce.