Employee Development Statistics You Need to Know Right Now

There are a few ways to differentiate a great workplace from a good one. One of the easiest ways to tell is when an organization invests in employee development. With a proper employee development initiative, employees feel more valued, they have a clearer career progression, and, best of all, they are more likely to stay longer.

We curated the key employee development statistics, highlighting why to invest in employee training programs and how to design effective programs in 2024 and beyond. Leverage these insights to create robust L&D strategies that meet your workforce’s current needs and prepare them for future challenges.

Statistics on the importance of training and development

Firstly, let’s focus on why you should invest in training and development.

1. 70% of workers say learning improves their sense of connection to a workplace

7 in 10 workers say learning improves their sense of connection to their organization. (LinkedIn Workplace Learning Report 2024)

Creating a learning culture within an organization is fundamental to fostering a sense of belonging and loyalty. When employees see that their growth is a priority, they are more likely to form emotional bonds with their workplace, reducing turnover rates and increasing overall job satisfaction.

2. 80% of workers say learning adds purpose to their work

Eight in ten workers say learning enhances their sense of purpose at work, which is helpful for the organization in the long run. (LinkedIn Workplace Learning Report 2024)

Purpose-driven work is not just a buzzword—it’s a powerful driver of productivity and engagement. Organizations can tap into this intrinsic motivation by aligning training programs with employees’ career goals and personal interests, resulting in a more dedicated and productive workforce.

3. 94% of employees stay longer in companies that invest in their professional development

94% of employees would stay at a company longer if it invested in their career. (LinkedIn, Developing Employees and Improving Performance)

Employee retention is a significant challenge for many organizations. Investing in professional development can be a game-changer, as it shows employees that the company invests in their long-term success. This investment can manifest in various forms, including continuing education, leadership development programs, and personalized career pathways.

4. Companies with a strong learning culture have 2X employee retention rates

Employees stay longer in a company that invests in their learning. 90% of organizations are concerned about employee retention, and providing learning opportunities is the number one retention strategy.

And it works, too. Companies with a moderate learning culture saw a 27% employee retention rate. On the other hand, companies with a strong learning culture observed a 57% retention rate for employees. (LinkedIn Workplace Learning Report 2024)

The correlation between a strong learning culture and high retention rates cannot be overstated. Organizations prioritizing learning and development create an environment where employees feel valued and empowered, leading to higher retention and reduced turnover costs.

5. 53% of Gen Z workers value learning for career progress

Gen Z workers want to grow even more than other generations. Young Gen Z workers starting in entry-level jobs are the hungriest for advancement. To tap into this younger workforce, organizations need well-planned L&D programs.

LinkedIn’s Workplace Learning Report shows that 53% of Gen Z workers value learning for career progress, 16% higher than other generations: Millennials, Gen X, and Baby Boomers.

Gen Z workers have entered the workforce with a strong desire for growth and development. Organizations that can meet this demand with robust learning and development programs will attract and retain top talent from this generation, setting themselves up for future success.

6. Six in ten workers need training before 2027

44% of workers’ skills could be disrupted by 2028. Due to the rising use of artificial intelligence in the workplace, this change could be further accelerated to 68% by 2030.

To deal with this change, 60% of workers need training before 2027. Moreover, half of those individuals don’t have adequate resources to make that happen. (World Economic Forum Future of Jobs Report 2023, Work Trend Index Annual Report from Microsoft)

Organizations must proactively address these skill gaps by providing timely and relevant training to ensure their workforce remains competitive and capable of navigating these changes.

7. 53 % of organizations are keeping upskilling and reskilling a priority

In 2023, only 21% of HR professionals reported that their organizations were effective in employee upskilling or reskilling. As a consequence, 53% of organizations now keep upskilling and reskilling a priority. (2023-2024 SHRM State of the Workplace Report)

Effective training programs close skill gaps and prepare employees for future challenges, ensuring organizational resilience and adaptability in a rapidly changing market.

8. 41% of current workers bridged the skill gap by training

Businesses continuously designing reskilling or upskilling training programs found that 41% of workers who completed training have effectively bridged skill gaps. (World Economic Forum Future of Jobs Report 2023)

Successful training programs can significantly reduce skill gaps. By continuously evaluating and updating training content, organizations can ensure their employees possess the necessary skills to meet evolving business needs.

Want to determine which areas your employees need more development? Use our skills gap analysis template to gather data systematically.

Statistics on the current state of L&D

How are training programs currently panning out? Here are some interesting statistics showcasing the current state of L&D.

9. 2 in 10 employees are dissatisfied with the skill variety of corporate training

Current training offerings lack skill variety. Two in ten employees, roughly 19%, are dissatisfied with the variety of skills offered. Skill variety is one of the top three obstacles to successful learning initiatives. (TalentLMS The state of upskilling and reskilling report)

Diversifying training offerings is crucial to meet the diverse needs of a modern workforce. Organizations should conduct regular needs assessments to ensure their training programs are comprehensive and relevant, addressing current and future skill requirements.

10. 43% of employees found new hire training outdated

Many companies need to re-evaluate their onboarding rituals. Rather than welcoming new hires into the organization, current onboarding processes alienate employees.

42% of employees found their new hire training exhausting with information overload. Further, 43% found their training outdated. The worst finding was that one in three employees regretted joining the company during the onboarding phase. (eLearning Industry State Of Employee Experience 2023)

Effective onboarding is critical for new hire success and retention. Organizations must modernize their onboarding processes to be engaging, relevant, and supportive, ensuring new employees feel welcomed and well-prepared to contribute.

11. 20% of employees don’t have time for training

Lack of learner time remains the top challenge for L&D teams in making any initiative successful. 20% of employees say they don’t have time to participate in training sessions despite their love for learning. (eLearning Industry State Of Employee Experience 2023, CIPD Learning at Work 2023)

Time constraints are a common barrier to training participation. Offering flexible, bite-sized learning modules that employees can fit into their schedules can help mitigate this issue and ensure continuous learning.

12. 20% of Gen Z employees feel their manager doesn’t understand their skill development needs

GenZ faced more challenges in upskilling and reskilling programs than other age groups. Among the GenZers who faced such challenges, 20% say their issue is that their manager doesn’t understand their skill development needs. (TalentLMS The state of upskilling and reskilling report)

Managers play a crucial role in their team’s development. Training managers to understand and support their employees’ career aspirations and skill development needs can enhance the engagement and effectiveness of training programs

Statistics on L&D strategy and budget

We also analyzed where the companies are currently spending, the types of programs running, and budgets. These are the most notable findings:

13. 53% of training programs for entry-level employees are specific to their role

Level-specific training helps employees develop unique skills appropriate for their profession’s current stage. More than half of the training (53%) planned for entry-level employees is level-specific.

44% of training planned for managers is level-specific. The proportion of level-specific training planned for mid-career professionals is 38%, and for transitioning senior professionals is 24%. (TalentLMS The state of upskilling and reskilling report)

Tailoring training programs to specific career stages ensures employees receive the most relevant and impactful learning experiences. This targeted approach can accelerate career progression and improve job performance at every level.

14. 43% of L&D professionals create in-house development programs

L&D programs are getting diversified. When asked what type of learning methods they incorporated in their strategy in the last two years:

• 43% of L&D professionals said they create in-house development programs
• 42% implemented mentoring programs
• 42% sponsored formal training qualifications or accreditations
• 42% incorporated self-directed learning
• 42% sponsored external conferences, workshops, and events
• 40% used coaching
• 36% encouraged peer learning through communities
• 29 % used blended learning
• 23% opted for on-the-job learning via job rotation, secondment, or shadowing
• 23% organized instructor-led training (CIPD Learning at Work 2023)

A diverse array of learning methods can cater to different learning styles and preferences, enhancing the overall effectiveness of L&D programs.

15. 47% of companies are investing in employee coaching and mentoring to boost employee retention

Four in five organizations (80%) that offer mentorship programs say it helps them address talent shortages. As mentors guide employees to reach the next level, companies can fill many positions internally.

Mentorship also shows a company’s commitment to employee growth and boosts employee engagement and retention.

47% of companies invest in employee coaching and mentoring to boost retention. (LinkedIn Workplace Learning Report 2024)

Coaching and mentoring are powerful tools for personal and professional growth. They help bridge skill gaps and foster a supportive work environment, increasing job satisfaction and retention.

16. 49 % of organizations prioritize succession planning

Organizations are realizing the high costs of poor succession planning—a sudden departure of senior executives dramatically affects operations and profits. As a result, 39% of organizations are currently prioritizing succession planning. (2023-2024 SHRM State of the Workplace Report)

Effective succession planning ensures business continuity and prepares the next generation of leaders. By identifying and developing potential leaders early, organizations can mitigate risks and maintain operational stability.

17. 47% of L&D teams plan to deploy microlearning programs in 2024

To make learning more effective, L&D teams now plan to include microlearning. These are small bites of information given to workers as and when required.

Microlearning is an engaging form of workplace training with higher knowledge retention as workers get it when they need it the most. 47% of L&D teams plan to deploy microlearning programs in 2024. (LinkedIn Workplace Learning Report 2024)

Microlearning aligns with the modern workforce’s need for quick, accessible, and relevant training. It allows employees to learn in the flow of work, enhancing retention and application of knowledge.

18. Companies spent $954 per learner in 2023

In 2023, the average training expenditure for large companies was $16.1 million (USD). For mid-size companies, it stood at $1.5 million. Small companies spent an average of $459,177 in 2023. Overall, companies spent an average of $954 per learner. (2023 Training Industry Report)

Investing in training is essential for maintaining a competitive edge. Spending on training initiatives indicates a strong commitment to employee development, which is likely to yield significant returns in terms of productivity and innovation.

19. Organizations spend 11% of their training budget on onboarding

On average, organizations allocated the most significant portions (13%) of their training budget to mandatory compliance training. Management and supervisory training takes 12% of the budget, and onboarding takes 11%. (2023 Training Industry Report)

Investing adequately in onboarding ensures new hires are well-prepared and integrated into the company culture, leading to higher engagement and shorter time-to-productivity.

Statistics on the use of technology in learning

This section focused on how companies use technology to scale their L&D efforts.

20. 96% of large and mid-size companies use LMS

The majority of companies use a learning management system (LMS) to organize and track all learning:

• 96% of large and mid-size companies use LMS
• 81% of small companies use LMS. (2023 Training Industry Report)

LMS platforms are invaluable for managing and delivering training content efficiently. They provide a centralized hub for tracking progress, assessing performance, and ensuring consistency in learning across the organization.

21. 44% of companies use eLearning tools

Rapid eLearning tools are gaining popularity as they make it simple to create course content. In 2023, 44% of companies had used rapid eLearning tools. (2023 Training Industry Report)

eLearning tools allow organizations to quickly develop and deploy training materials, keeping pace with the fast-changing business environment. These tools can enhance agility and responsiveness in meeting learning needs.

22. Around 50% of organizations are tilting towards online learning

Companies use online tools to reach all workers (remote and in-office). One major benefit of online learning tools is convenience. Workers can take courses wherever and sometimes whenever they want (if the session is recorded).

47% of organizations have virtual classrooms or webcasts to conduct training, and around 20% of organizations used some form of online training in 2023. (2023 Training Industry Report)

Online learning offers unparalleled flexibility and accessibility. By leveraging virtual classrooms and e-learning platforms, organizations can provide continuous learning opportunities that fit into employees’ diverse schedules and locations.

Statistics on the future of skills

Human resources and L&D experts should monitor skill trends to ensure their organizations are future-proof. This section focuses on expected future skill needs.

23. 82% of leaders say employees need new skills with the AI boom

AI will change the skill requirements, and employees must be prepared for it. 82% of leaders say their employees will need new skills due to the growth of AI. (Work Trend Index Annual Report from Microsoft)

AI is reshaping job roles and required competencies. Organizations must stay ahead by identifying and developing the skills in demand, ensuring their workforce is equipped to thrive in an AI-driven landscape.

24. 60% growth observed in AI-related training consumption

An annual report by Udemy observed a 60% growth in the consumption of AI-related training. More and more workers are taking time to keep up with the AI boom. (2024 Global Learning and Skills Trends Report by Udemy)

The surge in AI-related training highlights the growing recognition of AI’s impact across industries. Continuous learning in this area will be crucial for professionals looking to stay relevant and competitive.

25. 160% growth in AI training among non-tech professionals

AI is disrupting the workplace, and this is not limited to technical roles. LinkedIn Learning courses for building AI aptitude registered a spike of 160% among non-technical professionals, with roles like project managers, architects, and administrative assistants. (Work Trend Index Annual Report from Microsoft)

AI permeates all job functions, making it essential for non-technical professionals to acquire AI literacy. This cross-disciplinary skill development will enable organizations to integrate AI more effectively into their operations.

26. Data analysis, database management, and AI remain top new tech skills required

SHRM researched the top new tech skills in demand while hiring. Based on their findings, data analysis stood highest at 37%, database management at 27%, AI at 26%, and Cybersecurity at 25%. (SHRM 2024 Talent Trends)

The demand for data-related skills underscores the importance of data-driven decision-making in modern business. Organizations should prioritize these areas in their L&D strategies to build a workforce capable of leveraging data for strategic advantage.

27. Adaptability is the top soft skill of the moment

LinkedIn research found that the top most in-demand soft skills are:

• Communication
• Leadership
• Teamwork
• Adaptability

LinkedIn highlights adaptability as the top skill of the moment, with the most notable surge in year-over-year demand. Adaptability is a crucial skill for any organization as the pace of change only increases. (The Most In-Demand Skills for 2024 by LinkedIn)

28. Leaders are focusing most on coaching skills

Another interesting finding in the Udemy study was that leaders are investing the most time in developing coaching skills. Udemy observed a 177% increase in learning coaching skills year-over-year, a 150% increase in learning team-building skills, a 136% increase in empathy skills, and a 101% increase in learning resilience skills year over year. (2024 Global Learning and Skills Trends Report by Udemy)

This focus on coaching skills aligns with Gallup’s finding that high-engagement organizations train their managers into effective coaches who consistently deliver meaningful individual feedback, inspiring better future performance. (State of the Global Workplace report by Gallup)

Investing in coaching skills can enhance leadership effectiveness, employee engagement, and overall organizational performance.

Tip: Use our 70 20 10 employee development plan template to create a comprehensive development plan for your leadership development.

Solve people development with just a few clicks with Deel

With Deel Engage, you can run L&D programs and link periodic feedback with feedback and performance reviews for improved ROI.

As part of the Deel Engage software suite, you get the following:

• Career frameworks: Create career frameworks and paths for all roles in your organization to communicate transparently the skills required at each level
• Training library: Take advantage of the extensive library with the most popular training for in-demand skills you can add to individual workers’ career growth plans
• 360-degree feedback: Create automated feedback cycles to give timely and actionable feedback that improves employee performance
• Survey tools: Measure training effectiveness metrics with the survey tools, add survey steps to training journeys, or run training effectiveness surveys after each training program

Help your workforce reach their highest potential. Book a demo of Deel Engage to discover our platform’s benefits.

Sources:

• Workplace Learning Report 2024, LinkedIn
• Future of Jobs Report 2023, World Economic Forum
• Work Trend Index Annual Report, Microsoft
• 2023-2024 State of the Workplace Report, SHRM
• The state of upskilling and reskilling report, TalentLMS
• State of Employee Experience 2023, eLearning Industry
• Learning at Work 2023, CIPD
• 2023 Training Industry Report, Training magazine
• 2024 Talent Trends, SHRM
• 2024 Global Learning and Skills Trends Report, Udemy
• The Most In-Demand Skills for 2024, LinkedIn
• Developing Employees and Improving Performance, LinkedIn
• State of the Global Workplace, Gallup