Building a Stronger Workforce Through Learning and Development

Quick look: A thorough learning and development (L&D) strategy builds stronger, more engaged, and future-ready teams. Read on to review what L&D involves, today’s top trends and in-demand skills, and seven steps for creating an employee development program. You’ll also learn how partnering with a professional employer organization (PEO) can help develop and strengthen your training plans.

Investing in learning and development (L&D) is one of the smartest moves an employer can make. Beyond teaching new skills, a strong employee training and development strategy boosts retention, productivity, and company culture, while preparing your team for the future.

But what exactly does “learning and development” include? Let’s break it down.

What is learning and development (L&D)?

Learning and development (L&D) is the process of equipping employees with the knowledge, skills, and resources they need to perform effectively and grow professionally. It includes both employee training and development, with “training” focused on improving current job performance and “development” on long-term career progression.

For small and midsized businesses (SMBs), a well-designed L&D program helps close skill gaps, strengthens employee engagement, and aligns your workforce with organizational goals.

The benefits of learning and development for employers

When done right, L&D isn’t just an HR initiative, it’s a strategic business driver. The benefits of professional development for employers include:

Stronger productivity and engagement

When employees learn new skills and deepen their knowledge, they tend to become more efficient and confident, leading to better performance and fewer errors.

Higher retention and lower turnover

Employees who see a clear path for growth are more likely to stay at your company. LinkedIn’s 2024 Workplace Learning Report found that businesses with a strong learning culture have 57% higher retention rates.

Enhanced innovation and agility

To succeed in today’s competitive environment, businesses can’t just focus on keeping up, they must stay ahead. Continuous learning sparks curiosity and innovation, fueling teams to adapt to new technologies and market trends.

A stronger company culture

Investing in employees demonstrates that they’re valued, helping build a culture of trust, engagement, and purpose. According to the LinkedIn research mentioned above, 70% of employees feel that learning improves their sense of connection to their employer, and 80% say it adds purpose to their work.

More competitive recruiting

Research shows job seekers actively seek employers who prioritize growth. Prominently promoting L&D programs can help SMBs stand out in a competitive talent market, and 83% of human resource managers report using them as a recruitment tool.

Improved business outcomes

L&D aligns talent development with organizational strategy, directly impacting profitability and long-term success. And research backs this up: Harvard Business School reports that when employees receive targeted training, their companies see a 21% increase in profitability.

Employee development trends shaping the workplace

The world of work is changing rapidly, and so are the ways employees learn. Here’s a look at the top L&D trends making a splash today:

Personalized learning paths

Employees increasingly want training that fits their individual roles, career goals, and learning styles. Many employers are leveraging technology to deliver customized content that helps each person learn most effectively.

Continuous learning

The days of one-time annual training sessions are gone, and microlearning is in. Today’s workforce thrives on small, ongoing learning opportunities that build skills over time and keep knowledge fresh.

Digital and hybrid learning platforms

Hybrid and remote work is the norm for many, and on-demand courses and mobile learning apps have become standard, giving employees the flexibility to learn when and where it suits them.

A focus on soft skills

While technical expertise remains important, employers are prioritizing soft skills like communication, leadership, adaptability, and emotional intelligence. These abilities strengthen collaboration and problem-solving across departments.

Data-driven learning

Organizations are using analytics to identify skill gaps, track development progress, and measure return on investment (ROI) to ensure that L&D programs deliver measurable value.

An emphasis on employee well-being and career growth

Employees today want more than advancement; they want fulfillment. Companies that invest in development programs addressing both career progression and well-being gain a more loyal, motivated workforce.

The most in-demand skills for employee growth

The skills that mattered most five years ago may not be the most critical today. The World Economic Forum surveyed over 1,000 employers for its Future of Jobs Report 2025 and found the top 10 in-demand skills in 2025 are:

• Analytical thinking (69%)
• Resilience, flexibility, and agility (67%)
• Leadership and social influence (61%)
• Creative thinking (57%)
• Motivation and self-awareness (52%)
• Technology literacy (51%)
• Empathy and active listening (50%)
• Curiosity and lifelong learning (50%)
• Talent management (47%)
• Service orientation and customer service (47%)

By developing these areas, companies can empower employees to succeed today and prepare for tomorrow.

7 steps to implement an effective L&D program

An employee development program is only as good as the strategy that supports it. Here are seven tips to plan and execute an impactful initiative:

1. Assess organizational and employee needs

Begin by identifying skill gaps and aligning them with your business goals. To determine focus areas, you may analyze performance reviews and employee survey results.

2. Set clear, measurable goals

Define what success looks like to your organization: does it mean you’ve increased productivity, improved retention, streamlined onboarding, or something else?

3. Create tailored learning plans

Adapt training to address each employee’s job responsibilities and career ambitions. Balance formal learning with mentoring, shadowing, and on-the-job practice, like stretch assignments.

4. Adopt the right technology

Learning management systems (LMS), virtual workshops, and digital courses make training accessible and scalable. Gamification and microlearning can also improve engagement.

5. Encourage manager participation

Managers can make great coaches by reinforcing lessons, tracking their team members’ progress, and celebrating milestones.

6. Nurture a culture of learning

Promote continuous learning by recognizing growth achievements and encouraging cross-team knowledge-sharing.

7. Measure and refine

Use data analysis to monitor progress, gather feedback, and fine-tune your program to ensure it continues to meet staff and business needs.

Partnering with a PEO to strengthen your employee development strategy

For many SMBs, building and maintaining a comprehensive L&D program can feel overwhelming, but it doesn’t have to be. Partnering with a professional employer organization (PEO) can ease the burden and deliver tangible results.

By leveraging an HR outsourcing partner like a PEO, you don’t have to build your employee development program alone. A PEO provides expertise, technology, and resources that make it simple to design, implement, and manage learning initiatives, without adding administrative strain to your team.

With ExtensisHR, SMBs can gain access to:

• Customizable HR solutions: Whether you need help launching a full-scale L&D program or just want to supplement your current efforts, we offer flexible, scalable HR support.
• Unparalleled customer support: Our concierge-level customer service model includes dedicated Account Managers, HR Business Partners, and Payroll Specialists, plus an Employee Solution Center that answers your staff’s questions in under 15 seconds.
• Complimentary recruiting services: We help our customers attract qualified candidates ready to grow within their organizations, at no additional cost.
• Advanced HR technology: Our robust L&D platform features on-demand courses across a variety of topics, and our partnership with 15Five enables teams to assess and monitor development via one-on-one meetings, employee surveys, performance reviews, etc.
• Compliance and best-practice expertise: We ensure all training and development initiatives meet federal, state, and industry-specific regulations.

Developing your workforce’s skills is more than a trend, it’s a business necessity. And by embracing modern learning strategies, focusing on the right skills, and leveraging expert partners like ExtensisHR, SMBs can build resilient, future-ready teams that drive long-term success.

Your people are your greatest assets, and ExtensisHR can help you invest in them in a meaningful, measurable way. Learn more about our PEO solution or contact us today to chat about a partnership.