Increase in execs viewing L&D as a strategic business function

This calendar year came chock-full of new implementations to the workplace as we now know it. Employers and employees were welcomed by a dynamic macroenvironment, rapid growth of generative AI, and a continued embrace of globalized and remote workplaces. These changes, though exciting, have added more pressure to business operations.

Historically, when companies encountered turbulent times, one of their first cost-cuts was learning and development (L&D) programs. As time went on, businesses began to realize the true value of these programs, especially matching the rapid growth of today’s business realm. Workforces today have to learn, change, and grow quickly to keep up with new trends and opportunities. A recent study of 650 L&D and HR leaders reveals a further investment in talent development. Most learning and HR leaders have seen a budget increase this year, along with an increase in executive leadership viewing L&D as a strategic business function.

• 95% of L&D and HR leaders report an increase in budget (45% saw an increase larger than 10%)
• 52% of L&D and HR leaders say that employee engagement is the main cause for budget increases
• 75% of L&D and HR leaders report that executive leadership prioritize investing in L&D to ensure that their technology ambitions are successful

The majority of leaders ranked business and human skills as their top priority for L&D programs. AI skills were ranked the lowest priority by L&D and HR leaders, with only 19% rating it as a top priority. That being said, many companies are still in the early stages of embracing and operationalizing AI.

The plethora of options for educating employees can cause inefficiencies and stagnation for L&D. Today, there is more content than ever before, known as “content chaos.” Content chaos can be overwhelming for both employees and learning leaders. Learners need guidance on what course to take, what skills they need to learn, and how they can advance their careers. Roughly half (46%) of L&D and HR leaders said prioritizing content options is their greatest current challenge, with too many learning initiatives to measure and not enough time for strategic planning.

Related: Most professionals view continuing education as key to success, survey finds

L&D is receiving greater support from executive leadership, suggesting an increasingly important role for L&D and HR leaders in achieving core organizational goals. Around the world, L&D has moved to the forefront of executives’ minds to further aid their organizations in meeting mission-critical goals, all while playing a vital role in helping businesses navigate any future challenges.