Due to economic uncertainty, many employees are choosing to stay put for job security, a trend known as “job-hugging”. But staying is not the same as engaging. Workers who remain out of caution can quietly shift their attention away from work, leaving organizations to manage a workforce that is present but not invested.
This creates a dual challenge for employers: keeping employees engaged and staying competitive in a fast-moving market. Fortunately, leaders can lean into learning and development (L&D) initiatives, which have long served as a competitive advantage for retention and engagement.
Here are key insights from SHRM’s report, Skills (R)evolution: Preparing Employees for Tomorrow’s Jobs, that demonstrate the connection between L&D and engagement.
Learning Drives Employee Engagement and ROI
Among workers whose organizations offer L&D programs, more than three in four (78%) reported that participating had a positive or slightly positive effect on their engagement.
Even with the data, it can be tempting for organizations to reduce L&D spending. That’s the wrong approach, according to Doreen Coles, senior director of career growth and development at ADP.
“Just because people are staying, doesn’t mean you should stop [career growth and development] efforts,” said Coles in an episode of SHRM’s Honest HR podcast. “In fact, I would say just the opposite. It’s the exact right time to keep the workforce engaged and productive, focusing on growth strategies for your employees.
When you provide relevant development opportunities, learning becomes part of how employees experience their daily work, as well as a reason they choose to stay. HR leaders can frame the investment in L&D as a strategic lever due to its impact on ROI. The top scoring organizations surveyed, the “Skills Strategists,” were 2.3 times more likely to report good or excellent financial performance.
Learning Builds the Confidence to Adapt
Engagement is only half the story. Access to learning also shapes how prepared workers feel to navigate change.
Workers whose organizations offer L&D were significantly more likely to strongly agree that they feel confident in their ability to adapt to new challenges: 38%, compared with 30% of workers whose organizations do not.
L&D alone does not determine adaptability, but the gap is meaningful. As roles, tools, and expectations keep shifting, access to learning builds the confidence organizations need most during periods of rapid change. For example, job listings are expanding in the number of skills required, so the need for internal upskilling grows so that HR leaders can retain existing employees instead of only looking externally. Fostering employee confidence to adapt is a key power skill in today’s changing workplace.
The Future of L&D Strategy
When looking ahead, HR leaders should think carefully about the skills driving L&D strategy. In the report, 72% of respondents cited current skills, or those needed in the next one to two years, as the primary driver of L&D strategy. This approach helps confront rapid changes in technology and other industries that require new skills. However, this attention should be paired with considerations for how roles, tools, and business priorities might change in the future.
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