Companies are facing a myriad of challenges—from skill gaps and technological advancements to changing customer expectations and global competition. To stay one step ahead of the game, organizations of all sizes need a workforce that is agile, adaptable, and equipped with the skills and knowledge they need to thrive in such a dynamic environment. One major factor that separates the booming businesses from the flailing ones is employee training and development.

It is a strategic imperative for organizations that truly want to succeed in the long run. In fact, research by Gallup finds companies that invest in employee development report 11% greater profitability and are twice as likely to retain their employees.

Simply put, investing in your people is a necessity for success, both now and in the future.

By providing your employees with continuous opportunities to learn and grow, you’re not only giving them what they need to excel in their current roles but also empowering them to take on new challenges and contribute to the company’s future triumphs.

Here, we’ll shed some light on employee training and development, exploring its benefits, challenges, and best practices. We’ll also take a look at how technology can be leveraged to create more engaging and effective learning experiences. Consider this your ultimate guide to building an employee training and development program that pops.

Hybrid digital onboarding Playbook

What is employee training and development (and why should I care?)

Training and development are like peanut butter and jelly; delicious on their own, but when you slap them together…pure bliss! Training lays down the foundation for development, while development helps employees apply their new skills in a broader context and advance their careers.

Think of training (or peanut butter) as learning how to use a new tool, like mastering a software program or a new sales technique. It’s focused on acquiring specific skills that can be put to use immediately to improve performance. For example: a sales team might undergo training on a new CRM system to improve their efficiency in managing customer relationships.

On the other hand, development (aka jelly) is about obtaining comprehensive knowledge and skills that can help employees level up and tackle new opportunities and challenges. This could include things like leadership development, communication skills training, or even mentoring programs. Maybe a high-potential employee might be enrolled in a leadership development program to prepare them for a future management role. Similarly, a team could participate in a communication workshop to improve their collaboration and problem-solving skills.

It’s this combination of short-term skill-building (training) and long-term career growth (development) that helps employees reach their full potential—and makes a perfect snack. And the best part? It’s not just good for employees; it’s also a smart investment for companies. According to LinkedIn’s 2024 Workplace Learning Report, 94% of employees would stay at a company longer if it invested in their learning and development. That’s a pretty sweet deal, wouldn’t you say?

the effect of training on employee performance

The employee’s perspective: “What’s in It for me?”

You wouldn’t expect Superman to get very far without his cape, or for Wonder Woman to accomplish much without her cuff bracelets. The same goes for your people: they have the potential to do amazing things, but when they lack skills and training, they’re superheroes without any superpowers. Training and development is what helps employees become the best version of themselves (and knock out the competition).

From an employee’s perspective, training and development is an opportunity to:

Stretch their skills

Employee training and development allows employees to become a master of their craft and acquire new skills that will make them more valuable in the marketplace—like learning a new coding language, getting the hang of a design tool, or becoming a pro at public speaking. These skills make them better at their current job but also open doors to new opportunities and career paths.

Crank up their confidence

According to SurveyMonkey, 51% of employees believe training gives them more self-confidence. Why wouldn’t you want to help your people feel better about themselves? Training and development lets them level up their skills and knowledge so they can confidently tackle new challenges and shine in their roles. With the right programs in place, your employees can become experts in important areas like leading projects, giving client presentations, and negotiating deals.

Power their potential

Employee training and development is a surefire way to discover new career paths and opportunities for advancement. Maybe someone on your team has always dreamed of becoming a manager, or is interested in exploring a new field. Training and development can help them identify their strengths, suss out new possibilities, and create a clear roadmap for their career journey.

More good news: employees who participate in training and development programs are more likely to be engaged, motivated, and satisfied with their jobs. A study by Better Buys finds that employees with professional development opportunities are 15% more engaged and have 34% higher retention.

So, what are some examples of training programs that employees value most?

  • Leadership training: A SHRM study revealed that more than 8 in 10 employees want training on soft skills. Specifically with leadership training cited by 54% of respondents. The majority of employees want to develop the skills to lead and inspire others, whether managing a team or leading a project. This could include training on communication, conflict resolution, decision-making, and delegation—you know, those human skills that AI can’t replicate yet!
  • Reskilling and upskilling: Acquiring new skills to adapt to changing job demands or pursue new career paths is also important to employees. For example: a marketing professional might want to learn data analytics skills to stay relevant in our data-driven world. Or, a customer service representative might freshen up their coding skills to transition into a technical role.
  • Onboarding programs: Starting a new job can be overwhelming—employees want to get up-to-speed quickly and feel confident in their new role. A solid onboarding program includes new employee training on company culture, policies, procedures, and specific job responsibilities. Comprehensive employee onboarding software can hugely help streamline and improve the process. So you and your new talent are on the same page from day one.

By investing in employee training and development, you’re not only helping your people grow and succeed, but you’re also creating a more engaged, productive, and valuable workforce.

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The manager’s perspective: building a dream team

Your team is full of talent (but you already knew that). And while they definitely have the potential to reach new heights, they need a manager’s guidance, support, and development to do it. This is when employee training enters the chat. It gives your team the latest and greatest tools. Plus, it empowers them to rock their roles and contribute to the company’s overall success.

For managers, employee training and development can be a secret weapon to building a high-performing team. Deloitte research finds that organizations with a strong learning culture are 92% more likely to develop novel products and processes, 52% more productive, 56% more likely to be the first to market with their products and services, and 17% more profitable than their peers. It can help:

Improve team performance

Kit out your team with the skills and knowledge they need to thrive. This could look like training on new technologies, industry best practices, or specific job responsibilities. For instance, a sales manager might provide their team with training on new sales techniques or product knowledge to help them close more deals.

Boost retention, morale, and engagement

In an Amazon study, 74% of millennial and Gen Z workers said they would quit a job that did not offer the chance to learn new skills. Yikes! Show your people that you value their growth and evolution. In action, this means providing opportunities for professional development, mentoring, or even just regular feedback and recognition. Employees who feel supported and appreciated by their managers are more likely to be engaged in their work and committed to the company’s bottom line.

Align goals and expectations

How do you guarantee that everyone is on the same page and working towards common objectives? By setting clear goals, doling out regular communication and feedback, and creating a culture of collaboration and teamwork. People are much more likely to stay motivated and productive when they understand what’s expected of them. Additionally, it’s also critical they know how their role contributes to the bigger picture.

According to Gallup, only 30% of employees strongly agree that someone at work encourages their development. This (disappointingly low) number proves just how crucial a role managers play in identifying skill gaps, creating development plans, and providing ongoing support and feedback to their team members.

By actively participating in their employees’ training and development, managers can not only improve team performance but also strengthen relationships, foster trust, and create a more positive and productive work environment.

employee training and development

The HR/L&D perspective: the masterminds behind the magic

HR and L&D professionals, you’re the real MVPs of the workplace. You’re not just the party planners and rule enforcers. No; you’re the architects of growth, the employee whisperers, the masterminds behind a thriving workforce. You hold the power to transform organizations from the inside out, creating a culture of learning and development that attracts top talent, drives business success, and makes employees feel like they belong.

Why training and development matters to HR/L&D

From an HR/L&D perspective, training and development is a strategic investment that can:

  • Fuel a talent magnet: Want to attract the best and brightest? Create a learning culture that screams, “We invest in our people!” Top talent is drawn to companies that will prioritize their growth and development.
  • Drive business results: If you’re looking to increase productivity, innovation, or customer satisfaction, turn to training and development. It’s like upgrading your company’s operating system—the latest version is always faster, smoother, and more powerful.
  • Ignite employee engagement: Gallup research shows that companies with engaged employees experience 23% higher profitability compared to those with miserable employees. Investing in training and development builds a workforce that’s passionate, motivated, and committed. It gives your people the power to make a real difference (and feel really good about it!).

The challenges HR/L&D faces (and how to conquer them)

But wait, we have to be real (womp, womp). HR/L&D oracles also face their fair share of challenges, like:

  • Limited resources: Balancing budget constraints with training needs can be so stressful! Luckily, there are ways to maximize your impact even with limited resources. Get creative with your training delivery methods. For example, leverage free or low-cost resources, and prioritize training programs that align with your most critical business needs.
  • Measuring effectiveness: How do you know if your training programs are actually working? Don’t worry, there are also ways to track the impact of your training on employee performance and business outcomes. You can use surveys, assessments, and performance data to gather insights and make data-powered decisions.
  • Keeping up with trends: The world of employee training and development is constantly evolving. New technologies, learning methodologies, and best practices are emerging all the time, and it can feel like you’re running after the train. Just remember that it’s possible to stay ahead of the curve! Attend industry conferences, read relevant publications, and network with other L&D professionals to stay informed and inspired.

Tech to the rescue!

Technology can help you overcome these employee training and development challenges. For instance, Learning Management Systems (LMS) like Learn365 streamline program design, delivery, and tracking, making it easier to create and manage engaging training programs that get results. Plus, our AI assistant handles the logistics so you can focus on the strategy.

How to build a strong employee training and development program

Ready to create an employee training and development program that’s *chef’s kiss*? Then here’s your recipe for success:

1. Needs assessment

First things first, you’ll need to identify the skills and knowledge gaps in your organization. What are your business goals? And more importantly, what skills do your employees need to achieve them? Aligning training with organizational and individual needs is a must. Just like checking your pantry ahead of going to the grocery store—you need to know what you have and what you need before you can get cooking.

Oh, and don’t forget to involve your employees in the needs assessment process! According to a SHRM study, 76% of employees want training opportunities relevant to their jobs, and 32% want them to be current. Ask your people what they want to learn and how they prefer to learn it. This will help you create customized training programs that are relevant, engaging, and effective.

2. Employee training delivery methods

Secondly, employee training does not—we repeat, does not—have to be bland and boring! Choose the right mix of delivery methods to keep things fresh and engaging. This could include:

  • Onboarding programs: Give new hires a warm welcome and set them up for success with comprehensive onboarding programs. Research by Glassdoor found that organizations with a strong onboarding process improve new hire retention by 82%!
  • Continuous learning paths: Provide ongoing learning opportunities to help employees stay ahead of the curve and develop new skills.
  • eLearning modules: Offer flexible and accessible learning experiences that employees can access anytime, anywhere.
  • Workshops: Facilitate interactive learning experiences that kick-start collaboration and knowledge sharing.
  • Mentoring programs: A study by Gartner found that mentored employees are promoted five times more often than those who are not. Pair experienced employees with newer ones to foster growth and development.

3. Measuring development success

Lastly, training and development isn’t exactly a “set it and forget it” type of deal. You’ll need to track employee progress, gather their feedback, and analyze data to measure the effectiveness of your programs. This will help you suss out areas for improvement and ensure that your training is hitting the mark.

We suggest using surveys, quizzes, and performance reviews to gather data on employee learning and development. Break down this data to identify trends, areas of improvement, and opportunities to make your training programs even better.

These steps are the blueprint to creating a training program that’s not only effective, but also engaging and enjoyable for your employees.

Need some employee training inspiration?

Check out how these companies are using Learn365 to deliver engaging training programs:

  • A global leader in manufacturing, CEJN Group had trouble getting sales training to all its employees around the world. The old way of doing things was expensive and took too much time. So, they started using Learn365 (which is fully integrated with Microsoft 365, by the way!) to give everyone access to training materials anytime. This new CEJN Academy was a hit! Salespeople felt more confident and comfortable, which led to more sales and higher profits. Learn365 also made it easy to track who completed training and how much they knew. CEJN Group was so happy with the results that they plan to use Learn365 for even more training in the future.

  • NHS Informatics Merseyside, a UK-based healthcare organization, teamed up with Learn365 and Extranet User Manager (EUM) to boost their staff’s digital skills using Microsoft 365. Together, they built an LMS with a self-registration process that automatically puts users into relevant groups based on their email domain. The system connects with Azure AD to create guest accounts and manage user info. This solution made user onboarding a breeze, efficiently rolled out training on the NHS Microsoft tenant, and supported clinical systems training for a massive healthcare workforce. In the end, it improved the user experience, made site resource management more efficient, and let NHS Informatics focus on delivering top-notch healthcare services.
Employee training and development

Time to enter your employee training and development era!

Now that we’ve talked you into investing in your team’s development, get ready to crack open a treasure chest of benefits—increased productivity, sky-high engagement, and a workforce that’s ready to conquer any challenge (just to name a few).

Our powerful LMS solution is like a one-stop shop for all your training needs. It’s packed with features that make it easy to create, deliver, and manage engaging training programs that get results.

With an employee training software like Learn365, you can:

  • Create stunning courses with our easy-to-use drag-and-drop interface.
  • Deliver training anytime, anywhere with our mobile-friendly platform.
  • Track employee progress and measure the impact of your training programs.
  • Boost engagement with gamification, social learning, and personalized learning paths.

The best part? It’s all fully integrated in Microsoft 365 and Teams.

So, what are you waiting for? Take the first step towards a brighter future for your business and your people. Book a demo of Learn365 today.

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