Why employee learning is a vital cog in successful HR transformation

Investing in talent is no longer a nice-to-have; it’s an emerging battleground to capture market share, writes Mark Onisk.

According to Gartner, HR transformation – the process of better aligning HR practices with business goals, outcomes, efficiency, and employee experience – is more urgent now than ever, with talent becoming an even greater driver of competitive advantage.

The Australian corporate training market – a critical proponent of upskilling and nurturing talent and a fundamental principle of successful HR transformation – is estimated to grow at a CAGR of 6.57 per cent between 2025 and 2034 to reach AU$9.81 billion, and revenue in the Australian online education market is set for a market volume of US$6.68 billion by 2029. This is reflected, in part, by the growing popularity and usability of online and hybrid learning methods, and the significant business benefits of training and upskilling existing employees.

The business case for employee learning

Take the astronomical costs of employee turnover. The cost of replacing an employee can range from 50 per cent to 200 per cent of their annual salary, depending on their level. When you consider that a lack of career and skills development is commonly cited as a reason for employees leaving their roles, investing in skills is vital to keeping attrition low and employees happy. Furthermore, as cited by Harvard Business Review, training staff has a direct impact on your bottom line, with companies that provide employees with targeted training experiencing a 17 per cent increase in productivity and a 21 per cent boost in profitability.

In short, it pays to invest in skills, and this has only been heightened by the rise of artificial intelligence. New technologies like AI can be intimidating, causing employees to fear their jobs and question their AI skillset against their peers. HR professionals, therefore, have an important role in allaying these doubts and ensuring the necessary skills development is in place, so no employee feels left behind. This is a win-win, as a byproduct will be that your organisation gains critical AI proficiency as a result.

Work and learning – a symbiotic relationship

Outside of the positive impact employee training has on revenue and output, modern learning models are also vital in mirroring current working environments. Used correctly, they create a symbiosis where work and learning work seamlessly with one another.

AI-powered blended learning, for example, which merges the flexibility of digital self-paced content with hands-on labs, and incorporates GenAI tools for building deep, job-ready skills, is ideally suited for today’s hybrid work environments.

Hands-on technical labs provide live practice environments to help employees build and assess current skill levels, and can be accessed anywhere – via most channels – ensuring learning can happen in the flow of work, not against it.

The convergence of employee learning and AI

While elements of HR transformation pillars like employee learning are increasing themes in boardroom conversations, putting them on the CEO’s agenda isn’t always easy. For example, while CEOs rank the workforce as a top three business priority, their emphasis on growth strategy and technology – particularly AI – may distract from investing in the critical leadership and cognitive skills required to generate business value from these emerging technologies.

For example, an employee learning strategy that incorporates AI benchmarking for power skills and tech skills can supercharge growth and innovation across the enterprise.

Skills benchmarks and short assessments aligned to critical skills allow you to evaluate, strengthen, index, and track workforce development at scale. This unlocks insights into talent capability and enables you to curate personalised development plans with AI to close these gaps. Employees also benefit with measurable skills feedback, tailored learning paths, and other development opportunities. 

It’s also critical to outline how your organisation will or wants to use AI – their use cases – and compare that to the baseline skills of the workforce. After all, the rising tide lifts all boats, so improving AI and tech skills at an individual level improves your organisation’s overall proficiency.

A core driver of organisational success

In today’s fast-evolving business environment, employee learning is no longer a peripheral HR initiative; it’s a core driver of organisational success and resilience. As AI and hybrid work redefine how we operate, embedding continuous, accessible, and strategic learning into the flow of work is essential.

HR leaders must champion skills development not just as a retention or engagement tool, but as a critical enabler of growth, innovation, and digital transformation. By aligning learning strategies with business and technology priorities, particularly around AI, organisations can unlock the full potential of their existing workforce, future-proof their talent, and solidify HR’s role at the heart of corporate strategy.

Mark Onisk is the chief content officer at Skillsoft.