iscover
For Australian businesses to thrive on a global stage, investment in learning and development programs is essential, writes Matt Loop.
Australia’s workforce productivity has long trailed its global counterparts, with Australia falling below the Organisation for Economic Co-operation and Development (OECD) average in recent years. This gap, if left unaddressed, threatens the country’s global competitiveness. While emerging technologies like generative AI present significant opportunities to boost productivity, their benefits can only be fully realised by a workforce equipped with the necessary knowledge and skills.
For Australian businesses to thrive on a global stage, upskilling their employees is essential. Learning and developing (L&D) programs are critical here. The good news is that Australian business leaders recognise this, with our research showing that over three-quarters (76 per cent) agree that upskilling is crucial for productivity. But if the benefits are clear, why aren’t more businesses fully leveraging L&D programs?
The L&D challenge
As technologies like AI advance, the demand for technical skills has grown, raising the bar for what’s needed in the workforce. Yet Australia faces a skills shortage, with science, technology, engineering, and mathematics (STEM) enrolment lagging behind other fields. To meet future skills needs, research suggests at least 80 per cent of the Australian workforce will require tertiary qualifications by 2050. Businesses now face an urgent need to upskill and reskill their workforce to stay competitive – but barriers remain.
Launching and managing an effective L&D program is no mean feat. A key challenge is the burden on HR teams, who must manage, track and report on training for employees at all levels. Additionally, the cost and time involved in creating and delivering courses can be prohibitive, especially in a climate of economic uncertainty. While Australian businesses are projected to invest $8 billion in L&D initiatives this year, an increase from last year, many are scaling back their budgets due to economic pressures. In fact, one in eight are reducing their budgets despite a clear connection between upskilling and productivity.
Future-proofing the workforce
As businesses look ahead, investing in future-proofing their employees’ skills is key to maintaining a competitive edge. Not only does this create a more productive workforce, but it also fosters employee satisfaction, with 70 per cent of employees saying they want their employers to spend more on L&D.
Here are some steps companies can take to unlock workforce productivity using effective L&D programs:
- Cater to different learning styles: When designing an L&D initiative, it’s important to consider the diverse needs of all employees. While it’s not feasible to tailor content to each individual, offering a variety of learning formats, such as videos, infographics, or bullet point review sheets, ensures the materials resonate with different learning styles. This variety increases engagement and retention, allowing employees to absorb information in a way that suits them best.
- Reduce friction for HR teams: As employers expand their L&D catalogues, they need to be mindful of the impact this places on HR teams. Without strong workflows in place, HR teams are likely to become overwhelmed with managing course enrolment, progress, and completion. Businesses should invest in a unified L&D system that reduces administrative burden and helps HR teams automate tasks from tracking attendance, progress, and certifications, allowing them to focus on strategic initiatives rather than being bogged down by logistics.
- Launch your L&D catalogue with pre-built content: Developing custom content is by far the most expensive, time-consuming part of launching a new L&D program. To accelerate the rollout of effective training, businesses should seek a solution that offers pre-built courses, such as compliance courses, unconscious bias training, or cyber security essentials. This approach empowers HR teams to lay the foundation for L&D programs quickly, with all content accessible on mobile, tablet or laptops.
- Communicate with employees about their needs: While some L&D courses, such as compliance training, are mandatory, employers should also listen to their employees’ learning preferences to shape other courses. By gathering 360-degree feedback, companies can gauge the effectiveness of existing L&D courses as well as identify new topics that employees want to explore. Giving employees a voice in shaping the L&D program makes them more likely to engage with the content, making L&D a valuable tool rather than an obligation.
- Tackle short attention spans: Lengthy training videos can cause employees to lose focus and miss essential information. To combat this, HR teams should consider integrating interactive e-learning modules and gamified learning experiences. These methods not only capture attention but also improve retention, transforming L&D courses into opportunities employees look forward to rather than distractions from their work.
With businesses facing significant economic challenges, it might be tempting to cut L&D spending – but that may result in lowered productivity over the long term. Today, L&D is no longer just a compliance requirement; it has become a crucial part of upskilling employees and keeping them up to date with emerging technologies like generative AI. In a rapidly evolving technological landscape, businesses that prioritise strategic L&D will position themselves well for future success.
Matt Loop is the vice president and head of Asia at Rippling.
