Workforce productivity has been a long standing issue for Australian businesses. With productivity levels falling below the OECD average in recent years, we seem to be trailing behind our global counterparts, threatening our position on the international stage. Emerging technologies like generative AI promise pathways to boosting productivity and helping us keep pace with the competition.

As technology like AI continues to advance, so does the demand for technical skills to utilise them. However, their full potential can only be unlocked by a workforce equipped with the necessary knowledge and skills: research suggests that at least 80% of the Australian workforce will need a tertiary qualification by 2050 to meet the demand for future skills. Knowing this, businesses now face an urgent need to upskill and reskill their workforce to stay competitive.

On a positive note, business leaders understand that investing in learning and development (L&D) programs is essential, with our research indicating that over 76% of Australian business leaders recognise the importance of upskilling for boosting productivity. Despite this widespread belief in the importance of upskilling, the question remains: why aren’t more companies prioritising the development and implementation of L&D initiatives?

The challenges with L&D

Creating and managing an L&D program is not an easy task. The burden often falls on HR teams who have to manage, report, and track training for employees at every level. In a climate of economic uncertainty, the additional cost and time involved in creating and delivering these courses can deter some companies from investing in L&D initiatives.

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. Despite a clear connection between upskilling and productivity, one in eight businesses are actually reducing their budgets.

Future-proofing our workforce

As businesses look ahead, investing in futureproofing 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% 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 a 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 cybersecurity 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.

In the face of ongoing economic pressures, businesses might be tempted to scale back L&D budgets, but doing so could undermine productivity in the long run. Today, L&D is far more than a box-ticking exercise for compliance—it's a vital tool for equipping employees with the skills needed to navigate and harness emerging technologies like generative AI.

Implementing a learning management system to streamline L&D efforts allows companies of all sizes to effectively upskill their workforce and stay competitive. In an ever-evolving tech landscape, those that prioritise strategic L&D will be better positioned for future success.


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