LEARNING

DEVELOPMENT
AND

FOR BUSINESS 2023-2024

TechHub Joint Stock Company

27 Vu Ngoc Phan, Dong Da, Ha Noi, Vietnam
+84962385566
[email protected]
Website: http://techhub.com.vn/
 WHERE L&D (LEARNING & DEVELOPMENT)
LEADERS ARE DIRECTING THEIR INVESTMENTS?

What significant developments are currently influencing the decision-making processes in

the field of learning and development (L&D)?

Which specific skills are in highest demand within organizations, and how does this
demand vary across different departments or teams?

What top concerns are occupying the minds of L&D leaders? Does this encompass
assisting employees in addressing financial challenges brought about by the rising cost
of living and bridging skill gaps?

Lastly, what is the most effective approach to acquiring the necessary skills in 2024?
The Most In-Demand Skills in 2023
66%
Management and leadership 67%
66% Digital marketing 66%

Artificial intelligence 64%

Sustainable development 64%

67% 64% Big data and analytics 64%

Digital
marketing IT/enterprise service management 62%

Cyber 62%

Cloud 61%
Management Artificial
and leadership intelligence Agile 59%

Project and programme management 58%

Internet of things IoT 58%

Human design thinking/UX 56%

In 2023, what were the most sought-after skills that Automation 56%
leaders intend to prioritize when it comes to their DevOps 50%
L&D programs, essential for a successful
Lean 46%
workforce?
SCRUM 42%
Which department has the highest demands for L&D program in 2023?

25% 19% 17%

IT department Operations Marketing and

sales

14% 13% 10%

Product
R&D Finance
development

Although the IT department still holds the top position on the list, only 25% of respondents
reported that the highest demand for L&D is coming from the IT department in this year
compared to 31% in the previous year. Meanwhile, the demand from the marketing and sales
departments has risen from fifth place in 2022 to third place in 2023.
What is causing the increased demand for L&D

Besides aiding digital transformation efforts,

organizations are also facing demands to
39% 39% 33% facilitate remote or hybrid work arrangements
(39%). Hybrid work is not only becoming the
preferred choice for employees but also for many
employers who have observed cost and efficiency
benefits. According to Okta, 72% of European
Digital Driving
companies permit their employees to work
Remote/hybrid
transformation working productivity remotely for one to three days per week.

Additionally, boosting productivity (33%) is a

significant driver for L&D in the current year.
Organizations are grappling with challenges in
recruiting suitable talent and encountering
limitations in their budgets to support growth
During 2023, adoption of new ways of working was projects. The Confederation of British Industry
the number one factor driving L&D demand. This (CBI) discovered that 46% of businesses are
year, it’s fallen to sixth place, as businesses have struggling to meet production requirements due
to labor shortages. Furthermore, as reported by
adapted their processes, so they are now more Unum UK, 29% of UK workers believe that
adjusted to the huge changes in working practices. concerns related to the cost-of-living crisis have
adversely affected their work productivity.
What is causing the increased demand for L&D

Digital transformation 39% The primary drivers for L&D this year include digital transformation (39%), the
shift to remote/hybrid working (39%), and the focus on enhancing productivity
39% (33%)..
Remote/hybrid working
As our world becomes increasingly digital, businesses face significant
33% pressure to adapt to new technologies and emerging trends, or else
Driving productivity
risk falling behind. Digital transformation has risen to the top of the list
33%
of L&D drivers this year, a significant jump from its sixth position. This
Retention and attraction underscores the urgency to keep up with the rapid pace of digital
change.
Skills shortages 32%
With more organizations undergoing digital transformation, employees
Adoption of new ways of require the necessary digital skills, change management abilities, and
working 39% training on specific new technologies to ensure the success of these
initiatives. Additionally, organizations must invest in future-proofing
Increased competition
fromdigital natives 39% their employees' skillsets by providing upskilling and cross-skilling
opportunities, enabling them to take on digital-based roles and
Nothing in particular is driving responsibilities.
the demand for this 33%
How much does it cost to train employees?

Across organizations of various sizes, the average 2021

spending on employee training decreased by 21%, All Companies $1071
2022
amounting to $954 in 2023 compared to $1,207 in 2022.
$1270 2023

$964
Breaking down the figures by company size, large
companies notably reduced their training expenses to
Small (100 to 999 $1443
$481 per learner in 2023 from $1,689 per learner in 2022, employees)
marking a 71.5% decrease. Conversely, small companies $1369
slightly increased their spending, reaching $1,420 per $1420
employee in 2023, a 1.7% rise. Midsize companies
decreased their expenditures to $751 per learner in 2023
Midsize (1,000 to $902
from $826 in 2022, reflecting a 9.1% decrease. 9,999 employees)
$826
$751
Examining investments in tools and technologies, the
most anticipated purchases include online learning tools
and systems (43% in 2023 compared to 34% in 2022), Large (10,000 or $722
games and simulations (a nearly twofold increase from more employees)
$1689
the previous year at 41%), courseware design (35% in 2023
$481
compared to 19% in 2022), and classroom tools and
systems (31% vs. 18% last year). Spending on learning
management systems (LMS) decreased from 39% in 2022 500 1000 1500 2000
to 17% in 2023.
How much does it cost to train employees?

In 2023, the percentage of companies reporting an increase in their budgets

declined by 4%, reaching 40%. The majority of these budget increases were
below 16%. Approximately 44% of training budgets experienced growth in the
range of 6 to 15%, while 30% of organizations reported increases between 1 to
5%, a slight increase from 28% in 2022. Respondents attributing the budget
increase mentioned the following factors:
Decrease
Expansion of training program scope

Addition of training staff

Increase in
Growth in the number of learners served budget

Acquisition of new technologies or equipment.

The percentage of respondents indicating a decrease in budgets dropped to Remained the

11% in 2023, with more than half citing a reduction of over 16%. About 33% same
reported budget decreases in the range of 6 to 15%, and 9% cited decreases
between 1 to 5%. Over 90% identified economic uncertainty as the primary
reason for cutting training budgets. Organizations implemented cost-cutting
measures, such as attending fewer external learning events or decreasing
consultant investment, to reduce training program expenses.
What are the biggest challenges of organizations in 2023
In addition to supporting digital transformation efforts,
organizations are facing pressure to facilitate remote/hybrid
The consequences of the cost-of-living
76% crisis and associated concerns like 65% Achieving sustainability objectives working arrangements (39%). Hybrid work is not only becoming
inflation and economic instability the preferred choice for employees but also for many
employers who have observed cost and efficiency benefits. For
instance, Okta reports that 72% of European companies now
Helping employees effectively
64% Staying abreast of advancements in permit employees to work remotely for one to three days per
66% integrate their acquired knowledge into
technology week.
their everyday job responsibilities

Furthermore, driving productivity (33%) is a significant driving

Recognizing skill and knowledge force for L&D this year. Organizations are grappling with
66% Addressing deficiencies in skills 62%
deficiencies in employees challenges related to talent acquisition and limited budgets to
support growth initiatives. According to the CBI, 46% of
businesses struggle to meet output demands due to labor
Assessing the efficacy of learning shortages. Additionally, Unum UK's findings reveal that 29% of
66% Recruiting new talent 60%
initiatives
UK workers believe that concerns about the cost-of-living crisis
have adversely affected their workplace productivity.

65% Insufficient time for completing 60% Securing support from managers to
training endorse learning

Illustrating the worth and return on

65% Retaining valuable internal 58% investment (ROI) of learning
expertise and talent
programs

These are the top challenges businesses

are facing in 2023
How L&D can assist organizations in addressing the
challenges posed by the cost-of-living crisis?
Three out of every four organizations are encountering significant challenges while
addressing the consequences of the cost-of-living crisis, alongside other interconnected
issues like inflation and economic instability. This situation presently stands as the most
prominent obstacle facing organizations. During a period when budgets are already strained,
expenses are on the ascent, and employees are seeking financial assistance to navigate
through the crisis, justifying investments in L&D can indeed pose a substantial challenge.
50%
Nonetheless, the potential contributions of L&D in supporting both employees and businesses
amidst the cost-of-living crisis are often underestimated. From a corporate standpoint,
investing in L&D assists in elevating the skill levels of existing employees, enabling them to
shoulder a broader array of responsibilities and reducing the need for external hiring. L&D also
fosters heightened productivity, ultimately augmenting output and revenue. Concurrently, for Half of the businesses that
employees, L&D opens up more avenues for career progression, offering opportunities to take perceive their training
on greater responsibilities, acquire fresh skills, accumulate additional experience, and
initiatives as ineffective
ultimately increase their earnings over time.
attribute this to a deficiency
in their L&D budget
An overwhelming 83% of organizations are experiencing the
29% obligation to assist their employees in coping with the increased
cost of living. Currently, they are addressing this by:
1. Providing access to coaching and mentoring support (33%)
33% 2. Transitioning to a hybrid work model to improve work-life
30% balance (30%)
3. Enhancing their perks and benefits packages (29%).

83%
Organizations are placing a high priority on addressing skills gaps
and obtaining accreditations
In 2023, the primary focus of many Much more focused on filling
organizations' L&D strategies is directed skills gaps 24%
towards these objectives. Somewhat more focused on
filling skills gaps 48%
This approach enables them to customize Equally focused on filling skills gaps and gaining
their L&D programs and allocate budgets accreditations 24%
according to individual requirements and job Somewhat more focused on gaining
roles. Certain positions may necessitate accreditations 3%
accreditations for compliance reasons, task Much more focused on gaining
completion, or collaboration with specific accreditations 1%
entities, whereas others may require non-
accredited training aimed at bridging skills Reasons and benefits for gaining Reasons and benefits for filling skills gaps:
gaps, enhancing knowledge, and improving accreditations:
overall efficiency.
56% We need a relevantframework for
a specific initiative/project
52% It’s the best way to drive performance
improvements
Will your organization's approach to
learning and development primarily
emphasize the closure of skill deficiencies, 44% For compliancepurposes/our
industry mandates
44% Itfillbuilds knowledgeover time and helps
skills gaps
or will it prioritize obtaining accreditations?
44% Our industry/organisation
mandates them
33% Employee demand
33% Our suppliers require them for RFPs
What are the biggest challenges of organizations in 2023
42% 30% 25% 22%
Developing Adopting
Skills-based
Upskilling a lifelong customisable
assessments
learning learning solutions
strategy

38% 27% 25% 21%

Career
development Reducing Cross- Accredited
programmes skills gaps skilling certifications

37% 27% 25% 20%

Learning experience
Coaching/ platforms Micro
Reskilling
mentoring learning

The most in-demand L&D activities for businesses right now are
 L&D Trends in 2024
L&D should be guided by performance metrics and data analysis.
A Harvard Business Review article suggested that existing L&D practices were deemed ineffective and ill-suited for practical real-world
applications. This data carries validity in its message, given the absence of substantial indications that processes have undergone
significant updates.

According to a survey of 1,500 managers across more than 50 organizations, 75% expressed dissatisfaction with their company's L&D
function. Additionally, 70% of employees indicated that they lacked the necessary expertise to perform their job effectively.
Furthermore, a mere 12% of employees were observed to apply the newly acquired skills from L&D programs.

1500

70% of employees reported that they didn’t have

the required level of expertise to do their jobs
1000

75% of 1,500 managers

surveyed from 50+ Only a tiny 12% of
organizations were employees applied new

12%
500 skills learned in L&D
dissatisfied with their
company's (L&D) function programs

0
75%
 TOP 5 WAYS L&D PROS MEASURE THE
IMPACT OF LEARNING, IN RANK ORDER

1 2 3 4 5
Qualitative Satisfaction of The number of Employee Qualitative
feedback from employees using employees that engagement survey feedback about
employees using online courses consistently engage scores behavioral changes
online courses with learning that learning was
content intended to drive
Prioritizing psychological safety.

Predictably, creating a psychologically safe

environment is a top priority for nearly all L&D
professionals as it plays a crucial role in fostering
the development of employees in a constructive
manner.

Dr. Timothy Clark, the author of 'The 4 Stages of

Psychological Safety: Defining the Path to Inclusion
and Innovation,' highlights that employees typically
progress through four distinct stages before they
feel completely secure and empowered to make
valuable contributions:

13
4 Stages of employee
psychological safety Stage 1: Inclusion Safety
At this stage, employees need to feel secure enough to
bring their authentic selves to work and believe that they
are accepted for who they are.

Stage 2: Learner Safety

During this phase, employees should feel at ease to ask
questions, provide and receive feedback, experiment, and
learn from their mistakes.

Stage 3: Contributor Safety

In the third stage, employees are confident in using their
skills to make significant contributions to their work and
the organization.

Stage 4: Challenger Safety

At this final stage, employees feel secure enough to
challenge the status quo and propose improvements
when necessary.
Learning will become more social and interactive
Despite the numerous advantages of remote work, there are significant
drawbacks, with one of the primary concerns being a sense of
disconnection from colleagues and managers.

A survey conducted by Glint, involving 2,393 participants, found that 31%

of employees reported feeling less connected to their leaders, and 37%
expressed a sense of disengagement from their teammates.

Given the shift away from Instructor-Led Training (ILT), it is crucial for
Learning and Development (L&D) initiatives to incorporate a social
component by fostering a sense of community. Some companies have
already taken steps in this direction. According to CIPD, 28% of
organizations utilize social learning as a means to deliver e-learning,
representing an increase from 19% in 2020.

Community-based learning has the added benefit of driving higher

engagement. Data from LinkedIn Learning shows that individuals who
utilize social features consume 30 times more hours of content
compared to those who do not.

Social learners have the opportunity to interact with peers, colleagues,

and subject matter experts, often resulting in the establishment of
valuable new connections.
L&D leaders are increasingly recognizing the advantages of adapting and evolving their L&D strategies.
The onset of the fourth industrial revolution has made it more accessible than ever to bridge the gap
between the physical and digital realms. There are some key trends that businesses should take into
consideration:

Emphasize Invest in Explore AI and Address learner’s

individualization a career center automated solutions needs in real-time

Move away from the Provide employees with Consider leveraging AI Incorporate
one-size-fits-all approach a career center where and other automated microlearning into
and adopt a tailored, they can access on- solutions to create and employees' regular
one-size-fits-one demand learning, curate personalized workflow, avoiding the
approach. Empower prepare for new roles as development paths, need for them to
learners to make choices their interests evolve, simplifying the process dedicate separate time
about when and how and connect with and enabling replication away from their roles.
they want to develop, managers who can for others.
rather than adhering to a benefit from their skills.
rigid training schedule.
 Technology Trends Shaping the Future of L&D

The LD landscape is evolving, and certain technologies are at the forefront of this
transformation. Here's a concise overview of key trends:

Data tracking Technology:

1 Data tracking addresses the complexity of learning development and distribution, transforming
training from a cost center to a performance driver. Leveraging data, it tracks learning metrics and ties
outcomes to business performance.

AI and ML (Artificial Intelligence and Machine Learning)

2 Artificial Intelligence and Machine Learning personalize learning, offering real-time feedback. Adaptive
learning tailors programs based on individual performance, interests, and needs. AI also supports
content generation at scale.

Gamification
3 Game elements in learning enhance engagement but should be carefully balanced to avoid trivializing the
content. Understanding the audience's preferences is crucial, considering potential costs and time
investment.
 Technology Trends Shaping the Future of L&D

VR and AR (Virtual and Augmented Reality)

4 Virtual and Augmented Reality create immersive learning experiences, eliminating travel expenses.
Learners benefit from focused, distraction-free training, feeling present in the simulated environment.

Microlearning
5 Delivering bite-sized information, microlearning caters to shorter attention spans. Accessible on mobile
devices, it enables learning on the go through short modules or assessments.

Social and Collaborative Learning:

6 Technologies facilitating peer-to-peer learning gain traction. Collaboration for learning from peers is on
the rise, especially when subject matter experts are dispersed, allowing learning in the moment of need.

Video-Based Learning:
7 Evolving delivery methods, video-based learning adapts to learner preferences. It can be presented as
microlearning modules or utilized for assessments, incorporating self-recorded responses to questions
or role-playing scenarios.
 AI in Learning and Development - a notable trend of
2024
Leveraging AI, businesses are enhancing consumer connections and driving action, with a
notable surge in applications and use cases. AI offers a significant competitive edge in L&D,
exploring infinite possibilities to meet the needs of modern learners.

Measure Deliver Automate AI-Based

Collect Important
Effectiveness Appropriate Digital Tutor
Insights
Content

AI enables ongoing data AI-driven learning AI-powered digital

AI suggests relevant
AI facilitates the collection in L&D, systems automate coaches replace
information from
efficient evaluation of providing valuable tracking, delivery, and traditional instructors,
various sources, saving
learning program insights for informed evaluation of data, simulating expert-
learners time. Making AI
success, providing decision-making. It programs, and learner interactions,
the core of the learning
detailed insights into enhances automation, schedules based on addressing queries,
platform enables
performance metrics. data insights, individual learner planning, and providing
administrators to create
This allows quick personalization, backgrounds, learning resources. L&D
personalized, immersive
adjustments to training Machine Learning preferences, and goals. professionals blend AI
experiences and
programs for optimal solutions, and This streamlines the strategies with
automates manual
outcomes. sustainability, allowing learning process and conventional lectures,
tasks.
businesses to allows for secure incorporating digital
understand how AI evaluation of various advancements for more
contributes to learning types of content. accessible teachings.
and development.
11
 ABOUT US
We are TechHub Group Joint Stock Company. TechHub's
mission is to build intelligent technology platforms that change
the way people manage, learn, work effectively as well as
develop their organizations and businesses. We have a proven
track record of delivering quality and effective consulting and
technological solutions for organizations of all sizes in many
different industries.

The online E-learning management and training platform of our

company - LeanHub, will enhance flexibility in the training
activities of businesses, schools, and organizations. E-learning
courses facilitate effective learning and easy monitoring of
one's learning progress. In particular, E-learning courses
released on LMS (Learning Management System) software will
enable businesses to easily and accurately track and manage
employees' learning activities.
THANK YOU FOR READING!
Check out our website to see our full range of company solutions. If you
have questions or want to learn more, please get in touch.

TechHub Joint Stock Company

27 Vu Ngoc Phan, Dong Da, Ha Noi, Vietnam
+84962385566
[email protected]
Website: http://techhub.com.vn/