Section 3: Realising Workforce Potential

Training and development are key to retention

Forward-thinking organisations increasingly recognise the value of training for both retention and performance.

0%

plan to expand their training budgets in 2025

0%

or organisations committing to

0%

increase of their training budgets

This confidence is reflected in their investment plans:

77% plan to expand their training budgets in 2025, with 28% committing to increases of over 26%. This builds on the 2024 momentum, where 62% of organisations planned to increase training budgets, a sharp reversal from 2023, when 48% of HR leaders anticipated budget cuts. By contrast, only 5% of HR leaders expect to cut their training budgets, underlining workforce development as a key business priority.

The return on investment (ROI) is equally compelling.

More than three-fifths (61%) of HR leaders report strong ROI from corporate training in areas like productivity, retention, and performance, with 21% describing this ROI as very strong. These outcomes highlight training’s crucial role in tackling talent retention and organisational effectiveness.

0%

of HR leaders report strong ROI from corporate training

0%

describing this ROI as very strong

Reskilling and upskilling are central to these efforts.

For 64% of employees, access to reskilling opportunities is a key factor in deciding whether to stay with their employer. This aligns closely with the views of 76% of HR leaders, who identify reskilling as vital to their long-term retention strategies. Employees’ expectations further reinforce this point: 6 in 10 employees expect development opportunities in the workplace, and three-quarters (75%) value flexibility in their roles as part of their overall satisfaction.

Training also delivers significant performance benefits. More than half (56%) of employees report that workplace training has directly improved their productivity, with female employees seeing the greatest impact (61% compared to 52% of male employees). These outcomes highlight training’s dual role as a retention tool and a performance enhancer.

THG Impact Story

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