Top trends in employee development

The vast majority of organizations use on-the-job training by managers in order to meet their front-line training goals, but high turnover is a common obstacle to providing that training, according to a recent Association of Talent Development survey sponsored by learning management software platform Axonify.

The survey of 334 talent development professionals found a gap in the ability of organizations to solve turnover’s effect on training; 80% of respondents said they thought they could overcome turnover and provide necessary front-line training, but nearly half said they did not know how they could accomplish this.

Common training methods employed by respondents’ organizations included managerial coaching, job shadowing and knowledge sharing. Eighty-four percent said they did not currently use artificial intelligence for front-line training, and many stated that they did not believe staff had the knowledge to implement AI-enabled training, according to ATD.

That most employers have honed in on on-the-job training aligns with previous findings about the format’s value. A 2021 report by the Milken Institute and Infosys found that on-the-job training received particular approval from employees and managers, followed by licenses and certifications, online courses and university degrees.

On-the-job training can take many forms. Manufacturers like Bosch have folded on-the-job training into larger apprenticeship programs that prepare employees for long careers with their firms. Others have experimented with site-specific training, which can drive better performance, engagement and motivation, according to a 2024 report by Intertek Academy.

The new year also may allow firms to address the gap in learning and development opportunities between front-line and office employees. But training isn’t a cure-all for front-line employee burnout, a previous Axonify report found, and employers might need to consider offering more pay, benefits and resources as well.

While most employers in the ATD and Axonify survey said they were not using AI to train front-line employees, that has not stopped employees from using AI in training themselves. Results of a Moodle report published last month found that 52% of surveyed U.S. workers had used AI tools to complete mandatory work training.

About half of employed adults responding to a recent survey said they had taken or received extra training for work in the past year — but few learned about artificial intelligence, according to recent results from Pew Research Center.

Only 12.2% of respondents said they took a class or received training on the use of artificial intelligence tools or technology.

More than a third of respondents said AI skills are extremely or very important for workers today, but skills such as communication and critical thinking ranked much higher.

AI’s effect on the workplace is rapidly growing, but most HR leaders have not prioritized efforts to reskill those who may be most affected, according to a report from The Conference Board last month.

The speed with which the technology is evolving may be partly to blame. Employees have suggested elsewhere that AI is advancing faster than their company’s ability to train them.

But that doesn’t mean employees aren’t using AI at work. Some say they’ve forged ahead with adoption even if their employers haven’t, McKinsey & Co. data showed last year.

And while many have banked on hiring AI talent — especially those with generative AI skills — a tech transformation “isn’t something companies can simply hire their way out of, as it affects the entire organization and its ways of working,” McKinsey partners said in an analysis, pointing to the benefits of upskilling and reskilling.

Leader and manager development is a top priority for HR leaders, according to an Oct. 15 Gartner analysis, with many noting that their leaders and managers “are not equipped to lead change.”

Three-quarters of HR leaders surveyed earlier this year said managers are overwhelmed by their responsibilities. “For organizations to deliver on their goals, managers must be prepared to successfully lead both today and tomorrow,” Mark Whittle, vice president of advisory in the Gartner HR practice, said in a statement. “Though 75% of organizations have made significant updates to their leadership development programs, and more than half are increasing spending on leader development, they are not seeing results.”

Notably, Gartner said that traditional leadership development — seminars, lectures and more traditional learning programming — has “a negative effect” on development.

And manager competency matters for another key HR priority: building culture, Gartner said. More than half of HR leaders surveyed previously said their managers fail to enforce the culture organizations want on their teams.

The key may lie in peer learning, according to Gartner, including networking and team building.

Other studies and experts have also pushed the importance of coaching, especially for budding managers. Behavior-based coaching can help managers figure out what they need to do to succeed, Michelle Dix, senior vice president of human capital consulting at Hub International, previously wrote for HR Dive.

Coaching may fall short of expectations, however — especially if leaders are not encouraged to build coaching skills, an earlier DDI report noted.

Career development opportunities can highly influence both employee engagement and retention — and more employers are taking notice, according to a Sept. 5 report from Gallagher.

In a survey, about 43% of employers said they support career development to improve engagement, and 35% said they increased the importance of career well-being in 2024.

“Hiring and retaining talent is one thing, but driving better organizational outcomes requires effective engagement solutions,” William Ziebell, CEO of Gallagher’s benefits and HR consulting division, said in a statement. “If employees are given more opportunities to develop and advance their knowledge and skills from their employer, they’re more likely to gain a sense of purpose in their work, leading to increased motivation, engagement and buy-in.”

In a survey of 3,500 U.S. organizations across 22 industries, 57% said they have a formal strategy for improving employee engagement, marking an increase of 9 points since 2022. Career development, growth and mobility continue to top the list of key drivers of engagement and retention, they said.

Although 43% said they support their workers in developing and pursuing a career path, only 19% said they strive to offer interesting and challenging work, according to the survey. To boost engagement, companies can consider ways to challenge their employees with new goals, increased responsibility and promotions, Gallagher said.

Other reports have similarly indicated the importance of development, especially regarding employee engagement. For example, businesses may need to invest in employee development and adopt cross-functional career pathways to adapt to a “post-industrial economy,” according to a report from The Josh Bersin Co, a human capital advisory firm. A focus on reskilling and retaining workers will ultimately fuel productivity and growth, the firm said.

Unfortunately, most leaders tend to overestimate employee engagement and believe their workers are more loyal than they actually are, according to a report from Right Management, a talent brand under ManpowerGroup. However, investing in employee development can improve engagement and retention, particularly among mid-career and middle-layer workers who feel less engaged and need additional support from leaders right now, the report found.

Although both employers and employees see the need for skills development in the workplace, continuous upskilling isn’t the norm for most workers, according to a July 3 report from D2L, a learning technology company.

Investing in learning and development leads to higher retention and productivity, both groups said. However, employee uptake of L&D remains limited due to barriers such as time, money and a lack of motivation.

“What this data shows us is that there is a clear opportunity to help make a positive change when it comes to upskilling that could dramatically shift the way employees learn and grow while strengthening organizations,” John Baker, founder and CEO of D2L, said in a statement.

In a survey of U.S. employers and employees, 82% of L&D leaders identified talent acquisition and retention as the most concerning HR challenge today. In addition, 92% of learning leaders said effective training and development programs improve employee retention.

Similarly, 83% of employees said ongoing skills development is important for their overall job performance. They cited increased earning potential (64%) and career advancement opportunities (44%) as top motivators for seeking out additional education and training. 

However, only half of employees said they completed any formal education or training outside of work in the past five years, hindered by time constraints (42%) and a lack of motivation (35%).

In an era of AI and tech-related workplace changes, skill building is a top organizational priority, according to a LinkedIn report. For 2024, the top focus areas for L&D professionals included aligning learning programs to business goals, upskilling employees and creating a culture of learning. For the second year in a row, aligning learning to business goals took the top spot.

As employers face a skills gap in coming years, 70% said they’re investing in L&D initiatives, according to a survey by Salary.com. HR pros who responded say they’re placing a stronger focus on “soft skills,” such as communication, problem solving, critical thinking, decision making and attention to detail.

Employers have expressed concerns that they can’t train employees quickly enough to keep up with AI and tech developments in the next three years, according to a report by the World Employment Confederation. The vast majority of senior executives said they’ll need a more flexible workforce and are focusing on sectoral talent pools, contingent workers, skills-based hiring and internal flexibility.

Businesses can build bridges between education and industry by offering work-based learning programs, while boosting their talent development strategies as well, according to a report by American Student Assistance.

In a survey of 500 U.S. businesses, 86% of those with high school interns said their program aimed to strengthen their industry pipeline as a whole, and 81% said they filled their employment pipeline with diverse candidates due to internships.

“With a better understanding of the benefits realized by providing access to the workplace for those younger than 18, as well as how to overcome common challenges, the business sector will be well-positioned to play an equal role alongside education in preparing today’s youth for tomorrow’s jobs,” ASA said in a statement.

Although the number of businesses that offer high school internships has increased during the past five years, few students actually take part in one, the report found. Survey respondents said they’d be more likely to start an internship program if they had an increase in funding for intern pay and the ability to identify a suitable workload for interns.

Businesses with high school internships reported additional benefits to their talent development strategies. About 78% said they enhanced their diversity, equity and inclusion initiatives; 77% said they used interns to build the pipeline for entry-level positions; and 65% said interns reduced the workload of their full-time employees.

However, internship programs can pose challenges, survey respondents said, such as determining the work to give interns, attracting qualified candidates and scheduling around interns’ availability. Employers also pointed to concerns related to many interns’ lack of transportation to the workplace, a lack of staff resources to manage interns and a lack of funding for an internship program.

At the same time, many businesses are finding solutions such as using state funding to subsidize intern pay, according to the report. Companies are also participating in or launching other work-based learning activities, such as career fairs, mentorships, job shadowing, apprenticeships, informational interviews, field trips, open house days, classroom presentations and career-related competitions.

Some industries are leading the way. For instance, as labor constraints continue, the U.S. manufacturing industry is collaborating with high schools, community colleges and economic development groups to build awareness and interest. Companies offer facility tours, day-long workshops and courses in high-demand areas such as welding and machine technologies.

Although U.S. middle school and high school students display an aptitude for in-demand careers, they’re often not inclined to pursue those occupations due to a lack of exposure, according to a YouScience report. College-to-career pathways, internship programs and on-the-job shadowing could close the gap in industries such as healthcare, manufacturing, technology and finance, the report concluded.

Internship programs can also boost company reputation among future job seekers and prescreen candidates for future openings, Mariel Smith, partner at Hall Booth Smith, P.C., previously wrote for HR Dive; employers can create an effective program by planning ahead for onboarding, focusing on training and finding ways to help their interns feel like part of the team.

Employee resource groups can provide some of the most powerful tools for addressing the challenges defining the next decade, such as talent development; cohesion and connection; and innovation and performance; according to an analysis by Great Place to Work, a workplace culture research and consulting firm. 

“The best ERGs will evolve to meet the moment, empowering their leaders, building wide bridges throughout the organization and nesting subgroups to meet the unique needs of an incredibly diverse workforce,” the report noted.

However, ERGs face barriers to fully reaching this potential, Great Place to Work’s research found.

For example, ERGs may boast a robust membership but still struggle to have an impact on the organization, with members perceiving poor support from leaders and getting frustrated with a lack of accountability to them and their diversity, equity, inclusion and belonging goals, according to the report.

It outlined five steps organizational leaders can take to remove these barriers:

• Add ERG responsibilities to job descriptions and formalize ERG leadership with clear expectations and incentives that align with measurable business outcomes;
• Increase recognition and rewards for ERG service, such as factoring it into performance reviews and promotion decisions;
• Set goals for ERG members to grow their networks and provide them with opportunities to build ties across the company;
• Outline a nesting structure for ERGs by using focus groups to discover what connections they’ve built, what subgroups would offer value, and what groups are feeling left out; and
• Recognize the work of ERG members across the organization, such as through company town hall meetings, and give ERG members face time with key business leaders.

ERGs aren’t new to corporate culture; in fact, they’ve been around for more than 40 years, according to the report. Aimed at fostering DEIB in the workplace, they are known for broadening the professional networks of underrepresented employees and providing a psychologically safe place for connection, experts have noted.

Moving forward, ERGs can also be a catalyst for innovation, the Great Place to Work report found: Its research showed that opportunities for innovation are much higher for ERG members than for non-members.

“By bringing together an otherwise disconnected group of roles within the organization, ERGs will create serendipitous collisions that lead to bold new ideas for the business,” the report said.

Additionally, to position ERGs as talent centers, organizations should tap them to manage systems for tracking internal talent and for connecting employees with opportunities, the report suggested.

As ERGs evolve, HR professionals will play a key, but delicate role in the process, previous McLean & Co. research emphasized.

In particular, while providing support, HR must be careful not to overtake an ERG’s efforts, McLean said. To skillfully balance these priorities, HR should first understand an ERG’s needs and goals and then create pathways for it to receive formal support (such as through funding, recruiting and the ability to run initiatives) and to grow and be sustained, the advisory firm recommended.

Notably, the number of HR departments using third-party D&I consultants has been inching down since 2021, with only 10% of respondents telling HR Dive last year they were outsourcing the investment, a decrease from 12% two years earlier, according to HR Dive’s 2023 Identity of HR Survey. ERGs were touted by experts as one way employers could continue to invest in DEI without breaking the bank.