Most employee development programs fall short because they forget the most important part: the person behind the plan. When training feels generic, employees tune out—and companies miss the mark on impact.

Employees want growth that reflects who they are and where they’re headed. But when programs ignore individual goals, they feel disconnected. And when those same programs aren’t tied to business priorities, it’s no surprise the results fall flat.

HR Trends Report: How personalized development will accelerate business growth in 2025 >>

Your people want more than check-the-box training. They want opportunities that actually fit—ones that reflect their strengths, spark their interests, and help them grow. They want leaders who back their career development, not just in words but in action. And they want clear, honest paths to move forward in their careers—paths that align with both their goals and the company’s direction.

Though 78% of executives say building capabilities is key to long-term success, only 30% believe their current efforts are actually working. Why the gap? Many organizations still treat learning and development as an HR side project, rather than a true business priority.

“We need to help leadership see that development isn’t just for development’s sake—it’s about preparing for the future. We don’t always have the luxury of teaching people what they need in advance—we often don’t know what’s required until the moment we need it. That’s why continuous learning and agile development are more critical than ever to spark true creativity and innovation.”

- Teresa Preister, Senior Insights Analyst, Quantum Workplace

With 88% of companies citing retention as a top concern, learning and development has become a leading strategy for keeping top talent. Organizations that view this demand as an opportunity—not a burden—retain high performers 98% more effectively and are 57% more prepared to navigate change.

Winning organizations go beyond intent. They operationalize development through structured yet flexible career pathing—outlining clear next steps that align employee goals with business needs. That structure drives real ROI and secures leadership buy-in.

“One of the biggest challenges with programs like this is proving ROI. But when senior leaders see outcomes from employees’ ideas, it shifts their perspective. Learning becomes tangible, and that momentum helps push initiatives forward. Plus, it directly impacts retention and engagement by making employees feel valued and included.”
- Julie Melidis, Director of Learning & Development, Benesch

Developing employee talent as intentionally as you build products or services requires commitment. But the future belongs to the organizations that do. Companies that invest in personalized development don’t just retain talent—they build a workforce that’s agile, aligned, and ready for whatever comes next.

Why employee growth & development is broken (and how we're fixing it!)

Four critical shifts reshaping employee development

Organizations are facing a major evolution in how employee development must be designed and delivered. Here are four critical shifts driving the change:

1. Learning happens on the job.

On-the-job learning is the engine of employee growth. Today’s workforce expects development to be tailored to their roles, goals, and pace—and they want it embedded into their day-to-day experience. In fact, McKinsey estimates that 40–60% of an employee’s human capital value comes from skills learned through experience. 

Learning isn’t linear—and employees find the most value in immersion, application, and iteration.

The 70/20/10 model underscores this shift:

• 70% of learning happens through hands-on experience
• 20% through coaching and mentorship
• 10% through formal training

Gone are the days of “check-the-box” learning—where development meant sitting in a classroom or earning a certificate that didn’t translate into real impact. While formal training still plays a role, it can’t carry the load. Many organizations still rely on outdated models that disconnect learning from the flow of work—missing huge opportunities for continuous, on-the-job skill building.

“The most effective learning isn’t something employees have to find—it’s something that finds them. Growth should be part of the workday, reinforced in real time, and connected to real business challenges. If development feels like just another task, it won’t stick. But when learning happens naturally and adds value immediately, it drives real behavior change.”
- Meghan Freeman, Product Manager, Quantum Workplace

2. Employees want more control over their careers.

Today’s employees want more than vague promises of opportunity. They want to own their career journey—and clearly see what’s next.

That means organizations must provide visibility into growth paths, guidance on how to advance, and support from leaders and managers at every level. When HR builds career pathing frameworks, trains managers to coach effectively, and promotes transparency around opportunities, employees feel more in control and more invested.

But it doesn’t stop with HR. Senior leaders must champion growth as a business priority—celebrating internal mobility and signaling that career advancement is valued.

Organizations that win create a culture where growth isn’t feared or hidden—it’s expected, supported, and celebrated.

3. Growth takes many paths.

Career development doesn’t look like a ladder anymore. It’s not always upward—and that’s a good thing.

Top organizations understand that growth takes many shapes: lateral moves, expanded responsibilities, cross-functional projects, and new experiences that build long-term value. It’s not about chasing titles—it’s about increasing impact.

Since 2021, internal mobility has increased by 30%, and companies with strong internal hiring programs see employees stay 41% longer.

“Leaders must actively champion and celebrate lateral growth, recognizing it as a strategic advantage—not a sidestep. When employees see their peers gaining new opportunities and being rewarded for them, they feel more confident making similar moves.”
- Aaron Brown, Senior Insights Analyst, Quantum Workplace

When you redefine what growth looks like, you unlock a more adaptable, engaged, and future-ready workforce.

4. Technology opens access to growth.

Employees want development that adapts to them—not the other way around. 58% of employees prefer to learn at their own pace, on demand. They expect personalization that only technology can deliver.

That’s where tech becomes a true enabler. AI-powered career coaching delivers real-time, individualized recommendations—guiding employees toward skills to develop, projects to pursue, and mentors to connect with. It moves development from once-a-year conversations to a dynamic, ongoing experience.

With the right technology, development becomes more accessible, more relevant, and more effective—for every employee, at every level.

Delaying investments in employee development is a business risk in 2025.

HR’s role is stretching. You’re balancing tighter budgets, higher expectations, and constant pressure to prove business impact. And you’re doing it while wearing every hat in the closet: strategist, coach, technologist, change agent.

That’s why clarity matters. Acting with focus—and connecting your growth-minded employees to the right resources—is what turns development from a nice idea into real results.

But time isn’t on your side. Three major forces are reshaping the landscape right now:

• AI and emerging tech are transforming how work gets done
• An aging workforce is accelerating succession needs
• Ongoing talent shortages are making internal development mission-critical

These aren’t future challenges. They’re here now. The organizations that respond with strategy, structure, and urgency will come out ahead.

The cost of inaction around employee growth & development

1. Top talent walks out the door.

Many employees feel completely on their own when it comes to career development. Nearly half (46%) say their manager doesn’t know how to help them grow—and only 15% say their manager has helped create a career plan in the past six months.

If this is happening in your organization, you can bet that your best people are not far from leaving. When employees don’t see clear growth opportunities, they go looking for them elsewhere. 75% of exited employees say no one discussed their growth in the three months leading up to their departure.

And the cost isn’t just in morale—it’s in dollars. Every resignation means lost productivity, recruiting expenses, onboarding time, and valuable knowledge walking out the door. Replacing an employee costs 50% to 200% of their salary—a burden that adds up fast.

Organizations that get this right don’t just keep people—they keep the right people. In fact, companies with structured, business-aligned development programs are 98% more likely to retain high performers.

Employees aren’t just looking for jobs. They want to work somewhere they can grow, contribute, and feel momentum. If you don’t show them a future at your organization, they’ll find it somewhere else.

2. Managers struggle to coach effectively.

Managers sit at the center of employee development—and too often, they’re the missing link. Many don’t have the time, tools, or training to coach effectively. Some even hold back high performers—not out of malice, but out of fear. They’re worried about losing their best people, so they unintentionally stall growth instead of supporting it.

“Some employees are lucky to have great managers who guide their development, but that’s rare,” notes Meghan Freeman, Product Manager at Quantum Workplace. “Many managers lack the time, skills, or structure to do this well. AI could bridge the gap—providing timely guidance, surfacing key information, and keeping development top of mind in ways human oversight often can’t.”

Organizations that win don’t leave coaching to chance. They give managers the tools, training, and confidence to have real growth conversations. They use AI to prompt those conversations when it matters most. And they build a culture where supporting internal movement isn’t risky, but rewarded.

3. High-potential employees stay hidden and underutilized.

It’s a familiar pattern: doing the same thing again and again—and expecting different results. That’s how many organizations approach internal mobility. 

The issue usually isn’t a lack of talent. It’s a lack of visibility. When lateral moves or cross-functional opportunities aren’t encouraged—or worse, aren’t even acknowledged—employees hesitate to raise their hand. And that hesitation keeps high-potential talent hidden, underused, and eventually, disengaged.

Encouraging internal movement is one of the fastest ways to unlock growth—both for your people and your business. But visibility alone won’t cut it. You need structure. That means building clear paths for employees to stretch into new roles, try out projects in other teams, and grow in ways that actually match their interests and strengths.

Technology can help here. AI-powered tools can surface tailored suggestions for roles, mentors, and skills to build—making it easier for employees to take the next step.

4. L&D investments lack ROI.

Only 30% of executives believe their development programs deliver real business impact. That’s not just a learning problem, but a business problem.

Many programs fall flat because they’re generic, hard to scale, and rarely tied back to what matters most: performance, retention, and business growth. From 2022 to 2024, fewer than 5% of capability-building programs matured enough to even measure success. In a time of tighter budgets and growing expectations, that kind of return just doesn’t cut it.

At the root of it all is misalignment. If your employee development strategy isn’t clearly connected to real business outcomes, it starts to look like a nice-to-have instead of a must-have. And that makes it a prime target when budgets tighten. 

So don’t just think about how to build your program this year—think about how you’ll build proof that it’s working. Without clear ROI, you risk losing leadership support, momentum, and the infrastructure your future-ready talent strategy depends on.

HR trends to action: investing in personalized employee development

Personalized employee development doesn’t have to be a massive overhaul—and it doesn’t have to wait. Here are four moves you can make this quarter to build momentum:

1. Equip managers to become career coaches.

Your managers are the single most powerful driver of employee growth—and often the least supported. Give them the tools, training, and confidence to lead better career development conversations.

Start small: offer simple coaching frameworks, clear conversation guides, and AI-driven prompts to spark meaningful check-ins. When managers feel equipped, they’re far more likely to take action—and that consistency builds a stronger, more connected development culture.

2. Redefine success beyond promotions.

Not all growth looks like a promotion—and your culture should reflect that. Encourage employee development opportunities like lateral moves, cross-functional projects, and skill-building as real, valuable career progress.

Celebrate employees who take on stretch roles or make sideways moves to grow. Share their stories across internal channels to reinforce that progress isn’t always vertical—but it’s still progress.

3. Embed development into daily work.

Learning sticks when it’s applied. Use AI-powered insights, skills-based learning, and just-in-time coaching to connect employee goals with real business challenges.

Start by identifying one key initiative in each department where employees can contribute and grow at the same time. Build cross-functional teams and tie learning goals to business outcomes. When development feels real, employees stay engaged—and results follow.

4. Invest in the right employee development technology.

Look at your employee development tools with fresh eyes. Does your current tech stack support personalized, continuous growth—or just check the box?

The best platforms surface growth opportunities automatically, offer AI-powered skill assessments and coaching, and make impact measurable for both employees and leaders.

Look for employee development solutions that don’t just deliver content—but guide progress, spark conversations, and make development easier to manage and easier to see.

The real question isn’t whether you can afford to invest in development—it’s whether you can afford not to. Every day you delay is another day a competitor might be building stronger talent, keeping employees more engaged, and creating a workforce that’s ready for whatever comes next.

Want more actionable insights?

Explore all seven trends shaping the future of work in our 2025 Workplace Trends Report. You’ll find practical strategies to strengthen your talent pipeline, boost engagement, and drive real results—today and tomorrow.