In today’s rapidly shifting business landscape, learning and development (L&D) is not a luxury—it’s a necessity. Organizations that thrive invest in their people, building skills and capabilities that directly fuel business outcomes. Yet, many leaders still hesitate, citing resource constraints or budget pressures. Frankly, if you’re not investing in L&D, your business is already on life support.
The Case for L&D Investment
Organizations tying L&D to tangible business outcomes see a dramatic return on investment—up to eight times greater than those that don’t. Stephanie Santos, in Harvard Business Review, echoes this, reporting that the greatest influence on employee retention is the opportunity to learn and grow. In fact, LinkedIn has repeatedly reported the significance of L&D on employee performance, well-being, and retention. For example, in their 2025 report, they find that 68% of employees claimed that learning helps them prepare and adapt during times of change. And yes, things are always changing.
This isn’t just about filling skill gaps. It’s about creating a culture where employees feel valued, engaged, and empowered to contribute new ideas and perspectives.
Linking L&D to Business Outcomes
The most effective L&D programs are those that are strategically aligned with business goals. As Thomas Edison famously said, “Most people miss opportunity because it comes dressed in overalls and looks like work.” Well, L&D is hard work, but it pays off when it’s focused on competencies that drive outcomes—such as revenue, customer satisfaction, productivity, involvement, and retention.
Research shows that involved employees—often the result of robust L&D—are 20-25% more productive, and organizations save significantly on recruitment costs by reducing turnover. The key is to use data and predictive analytics to identify which skills and behaviors are the most impactful for your business, then tailor your development programs accordingly.
A Real-World Example: Progressive Insurance
Progressive Insurance offers a compelling case study. Under the leadership Lori Niederst (CHRO in 2020, now Customer Relations President), Progressive has maintained a steadfast commitment to developing its people, regardless of external challenges. Niederst shares:
“In 2016, we launched our multi-cultural leadership development program. I am pleased to say it is still going strong… [having weathered the Covid-19 Crisis]. The program includes some traditional training, coupled with experiential learning assignments that allow our leaders to roll up their sleeves and solve real business problems. For example, a recent cohort was sponsored by our finance organization and tasked with developing metrics to improve our sourcing practices. The result was an improvement in operational outcomes, a significant cost savings and an education for some of our best and brightest on how our finance organization operates. In addition to these benefits, promotion rates for graduates of this program are two times that of their Progressive peers.”
This approach exemplifies how linking L&D to real business challenges and outcomes not only strengthens the organization but also accelerates individual careers. Heck, talk about a win-win!
Personalization and Manager Involvement
One-size-fits-all approaches to development are increasingly obsolete. Sydney Finklstein in Harvard Business Review advocates for individualized learning paths because firms must recognize each employee’s unique strengths, needs, and aspirations. Managers play a pivotal role here: their attention to each employee’s development journey is the single most important factor influencing engagement and retention.
Continuous Improvement and Measuring Impact
L&D is not a “set and forget” function. The most successful organizations continuously measure, adapt, and refine their programs, blending hard metrics like performance and revenue with softer indicators such as employee morale and involvement. This ongoing evaluation ensures that L&D initiatives remain relevant and impactful, thereby protecting (and expanding) the L&D budget by demonstrating clear ROI to leadership.
In Closing
Investing in L&D is not just about surviving; it’s about positioning your organization—and your people—to thrive. As Edison reminds us, opportunity is often disguised as hard work. The evidence is clear: when you connect learning to business outcomes, personalize development, and involve managers as growth partners, you build a loyal, agile, and high-performing workforce.
Author: J. Craig Wallace, PhD
