In today’s rapidly evolving work environment, professional development is no longer a nice-to-have perk, it’s an imperative. With budget tightening and workforce disruptions such as layoffs affecting many sectors, now is not the time for organizations to eliminate employee professional development and training.
Likewise, individuals should continue to upskill regardless of whether organizational resources are plentiful. In this article, we explore ways that executives may approach learning and development (L&D) spending, as well as strategies for employees to secure professional development funding.
For Managers: How L&D Can Keep Teams Competitive
In this first section, we’ll explore three key strategies for managers to effectively allocate resources for L&D, even during difficult economic times. When they better understand the importance of such programs, leaders can make more informed decisions that benefit the organization in the long term.
1. Assess the risk of cutting L&D budgets.
When budgets are tight, L&D is often among the first programs to suffer cutbacks. This frequently happens because training is perceived as the low-hanging fruit when it comes to justifying budget cuts. However, these types of short-term cost-saving measures may not be a wise strategic move for executives. Having well-trained employees is critical to staying competitive, and we encourage executives to assess the risks their organization will be taking should they decide to eliminate employee training dollars.
For example, organizations that cut L&D spending may fall behind when the economy recovers compared with those that maintain their investments. As a result, workers could lack the critical skills needed for organizational success. Furthermore, investing in L&D helps companies do more with less. The number of skills needed for a single job has increased 10% annually since 2017, according to research conducted by Gartner. Those organizations that continue to prioritize upskilling will have employees who are up to date on the skills needed to accomplish their work, whereas organizations that significantly cut L&D likely will not.
PwC’s annual CEO survey found that companies with advanced L&D programs in place had higher employee engagement and were better at attracting and retaining top talent. Executives must keep this in mind, even in the face of economic downturns, because slashing L&D budgets can increase the risk of losing talented employees. As Josh Felperin, global sales director of Alps Controls, put it, “Investing in employees’ personal and professional development on a consistent basis should be any leadership team’s No. 1 priority, not just financial results.”
2. Shift to framing L&D as an investment.
Managers need to consider L&D as an investment rather than a cost. Think about how L&D can generate revenue instead of being just another budget line item. For example, upskilling and promoting from within can save organizations money on recruitment and hiring. According to the Society for Human Resource Management, the average hard cost of recruiting a new employee is $4,700, with total costs — including soft costs such as time — amounting to two to three times the position’s salary. Now imagine what your L&D managers could do with just half of that dollar figure in terms of upskilling a current employee instead of hiring a new candidate. Not only are you saving on recruiting costs — you are also helping your organization close the skills gap that is plaguing many industries.
Finally, executives should view their own L&D activities as an investment. In a tight economic environment, it might be tempting to cut both L&D funds and the time dedicated to training. However, research has found a significant relationship between executive L&D activities and organizational performance.
3. Strategically prioritize the skills to be developed.
When facing economic headwinds, budget reductions across all departments might be unavoidable, and we’re not arguing that L&D budgets should remain completely untouched. However, we do advocate for allocating funds to strategic training priorities. The reality is that some L&D training may be postponed until the economy flourishes again. It might be necessary to prioritize hard skills, like project management or cybersecurity, over soft skills, like time management, in the short term. While we strongly support soft skills training — they play a key role in every business — we understand that L&D funds may need to be spent on immediate hard-skills training needs in order to keep your organization competitive.
Match your L&D expenditures to your organization’s KPIs. Amazon is a great example of a company that does this. Despite recent major layoffs, it continues to train employees in key areas through its Upskilling 2025 initiative, including hard skills like cloud computing services and machine learning. Regardless of which skills you value most, the imperative is to be sure you’re providing training opportunities. “Organizations that are not investing in the development of their employees are working against themselves and tripping over their own feet,” Jon Sexton, senior vice president of culture and leadership development at Vibrant Credit Union, asserted.
For Employees: Strategies for Securing Professional Development Opportunities
Pursuing professional development opportunities in the workplace can be challenging, particularly when budgets are constrained. Instead of passively waiting for workshop and training opportunities to arise, employees need to be proactive in convincing managers of the mutual benefits of L&D investments.
That said, asking for money when budgets are tight is never an easy conversation, particularly when L&D is perceived as merely nice to have. We recommend the following approaches to prepare your case, shape a productive conversation, and secure funding for your professional development.
1. Align your goals with your organization’s needs.
To increase your chances of obtaining approval for professional development opportunities, frame your request by demonstrating how the training will support your team’s objectives. If you can explain how it will move your team forward, you’re more likely to gain your manager’s support (and funding).
Take the case of Nick. His employer already had an in-house training team delivering Continuing Professional Education hours for accountants, so he didn’t think it would sign off on an external CPE course that focused on reviewing skills. To justify the expense and need — given his position as a junior accountant at the time — Nick discussed how the course would benefit the firm first and himself second with the managing partner. Nick emphasized that the course would help the company maintain its commitment to providing accurate, reliable information to clients through specific training on how to avoid making common tax accounting errors. By making the compelling argument that the external training would provide critical skills to help the company achieve its mission, Nick was able to convince his manager that the training would be valuable and received the funding.
Similarly, when Amanda, an insurance professional, asked her manager to pay for her training to earn her claims adjuster license, she took what she described as a “help me, help my team” approach. Amanda made her pitch for professional development during a time when the team she was on was struggling. While her current job function was not that of a claims adjuster, earning the license allowed her to help her organization in an area that really needed assistance.
During your pitch, ask your manager how they would like you to share the knowledge gained from training. This might involve a one-on-one follow-up, sharing presentation materials or bullet points summarizing the training, or even hosting a workshop to review the material with your team. By being proactive in sharing what you’ve learned, you further solidify the benefits of professional development for the entire team.
2. Bring your manager on board.
As Gianpiero Petriglieri has noted, many organizations “are not as hospitable to learning as their rhetoric suggests.” While employees may be frustrated by managers who overlook learning or prioritize performance over all else, they can educate managers on the benefits that professional development can bring to the company by taking a tactful approach.
For example, one vice president at a large industrial services company was reluctant to see training as an investment, fearing that employees might demand a raise or even leave after the training. In truth, this belief is a myth, if not irrational. Employees are a greater flight risk when they do not see internal opportunities and have to look elsewhere for personal growth. After all, employees are humans who have the fundamental need to feel competent, and they appreciate arrangements that are customized to their skills and interests. Employees can share third-party sources that emphasize the importance of targeted training to employee retention and engagement. For example, research from Gallup suggests that professional development is a top factor in retaining millennials.
When discussing the topic with your manager, it’s important to embrace a positive tone and remember that there might be resistance along the way. Shape the conversation in a way that focuses on how professional development increases the retention of valued employees. Be prepared to hear “no,” but probe to find out what might make your manager say “yes.” By understanding their concerns, you’re better equipped to overcome those barriers. Consider asking questions like, “What would help you say yes?” or, “Would you worry about our competitor sending employees to this training?” This encourages your manager to consider the potential upsides of your request.
Three communication touchpoints are helpful for closing the circle when it comes to getting your manager invested in L&D as a team resource. First, communicate clearly about the training you’re seeking and gain permission to attend the training. Second, update your manager during the training, expressing your enthusiasm and gratitude. For example, you can send your manager a short status update on how the training is going and the initial ideas you have to bring back to the team. Lastly, once the training is complete, acknowledge your manager’s support when sharing your newfound knowledge with the team. By showing your excitement, you can inspire coworkers who also desire professional development.
3. Show your commitment to learning.
When pitching your professional development request, consider providing several options, ranging from fully funded by the company to partially funded by you. Demonstrating your commitment to learning new skills, even if it means investing your own money, can make your request more persuasive.
Divya, for example, found a $2,500 training opportunity to develop the soft skills needed to better serve customers at her government agency job. Knowing that funding was limited, she proposed several options to her manager, including 100%, 50%, and 25% company funding. By having some skin in the game, Divya showed that she was serious about the training. In the end, her request was fully funded by the agency, but she was prepared to accept partial funding and cover the rest herself.
You can also show your commitment by exploring lower-cost or free opportunities before pursuing other options. An effective way to do this is to detail what you have learned so far through training options at no cost to your employer — and what skills or knowledge gaps still exist. Perhaps you want to earn a certification in data visualization. You can begin by completing online courses for free or at minimal cost, which can provide the foundational knowledge needed in this area and demonstrate your time investment. Then, explain to your manager what you’ve learned and why additional, funded training is necessary to further your goals.
Prioritizing learning and development is essential for both managers and employees to help steer their organizations toward sustainable success and maintain a competitive edge. Even during economic uncertainty, strategic L&D investments can boost employee engagement, close skill gaps, and foster growth. By recognizing the value of professional development and adopting a collaborative approach, leaders and employees alike can create a thriving learning culture that promotes individual and organizational success.
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