L&D programs when budgets are tight: A Q&A with Jeremy Walsh

"Learning and development leaders should strive to be “L&D mixologists” and find the right mix of learning experiences to achieve their learning and development goals," says Jeremy Walsh.

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In an economic downturn, employee development programs are often the first to see budget cuts. At the same time, investing in employee growth in an economic downturn is crucial for companies to stay afloat and ahead of competitors.

Jeremy Walsh, EVP of Employer Solutions at AllCampus, discusses why L&D is about more than just checking the box and how employers can create lean L&D programs when budgets are tight.

What are some practical strategies that companies can employ to ensure that their learning and development programs remain effective even with limited or diminishing resources?

Despite budgetary constraints, employers can still strategically design effective learning and development programs that maximize resources without sacrificing skill development. Employers should start by prioritizing upskilling critical skills that align with organizational developmental objectives, and pinpoint those that will make the most impact toward those goals. While employers with limited resources may have narrow learning and development options, aligning employee development goals with specific skills can lead to the desired outcome for the organization.

Learning and development leaders should strive to be “L&D mixologists” and find the right mix of learning experiences to achieve their learning and development goals. Employers can provide flexible learning options like online asynchronous learning programs, forums, mentor groups or in-person workshops, to appeal to different employee learning styles. Learning and development leaders might also consider the option of collaborating with educational institutions and industry associations to acquire cost-effective, high-quality content. It’s also crucial to approach learning and development from a holistic perspective and consider how existing benefits, like tuition assistance, can be more effectively utilized and aligned with a company’s learning and development goals.

Uncertain economic conditions are impacting all types of workplaces. Why is now a good time for employers to invest in employee learning and development?

Regardless of financial conditions, investing in employee learning and development programs demonstrates an employer’s commitment to nurturing employees’ wellbeing and professional growth while fostering a culture of continuous learning within an organization. However, in a challenging financial environment, investing in employee growth can address a dire need for skill adaptability in a rapidly changing job market. With skill development programs, employers can equip their workforce with the agility to navigate shrinking teams, evolving roles and new technology.

Investing in employee learning and development can help future-proof the workforce and build a resilient and adaptable team that can face and manage business challenges and opportunities in a turbulent economy.

What are some common pitfalls or misconceptions that companies should avoid when navigating budget constraints within their employee development initiatives?

During challenging economic times, one of the most common misconceptions is that employers can no longer fund training programs entirely. Data shows that budget issues are the top challenge for more than half of learning and development leaders this year. But there are many ways to navigate budget issues and invest in learning and development despite these challenges. Employers can turn to formal and informal opportunities to upskill by leveraging the expertise of veteran team members and creating mentorship programs. Another common pitfall from employers is using a one-size-fits-all approach to learning. Employees have various learning styles, and not offering flexible learning options can undermine the effectiveness of learning and development programs.

How does a well-designed learning and development program contribute to employee retention and talent attraction during a volatile economy?

Employees are facing an environment of constant change, with new workforce innovations and emerging technology, and offering employee development can be a key differentiating factor for employers in the market. Data shows more than two-thirds of employees want learning and development opportunities, and more than 60% want more coaching and mentoring. Learning and development programs can not only be key to attracting career-minded talent, but also keeping current employees engaged. Offering flexible and personalized career development opportunities can be crucial to keeping existing employees engaged by appealing to their learning style and offering career mobility with, or outside, of their current employer. Data also shows that personalized career development opportunities can also be beneficial to organizations, resulting in a 15% higher internal mobility rate than companies where employees lack training.

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

How can organizations foster a culture of continuous learning, not just as a response to economic challenges, but as a core component of their long-term business strategy?

Investing in learning and development fosters a culture of support and commitment to employees’ futures, leading to heightened engagement and increased retention rates. This not only bolsters morale but also translates into a tangible reduction in turnover, preserving valuable talent within the organization. Employers should prioritize aligning development goals with business objectives and demonstrating leadership buy-in. Middle managers and team leaders should also work to integrate learning into daily work and offer feedback and support to enhance the learning culture outside traditional programs. Learning and development can also determine how to best measure learning impact and update learning programs to ensure sustained growth and innovation within an organization.