Retention crisis ahead! With hiring costs soaring and UK workers quitting at record rates, businesses can’t afford to lose talent.
Aisling MacNamara reveals how investing in learning and development keeps employees engaged, fuels career growth and boosts retention. 
Future-proofing your workforce starts with L&D!
According to new data from Personio, nearly half of workers (48%) plan to quit their jobs in 2025. This poses difficulties for UK companies, as the estimated cost of replacing an employee starts at 30% of an average employee’s salary, rising to 200% for top performers.
Investment in learning and development can be a highly effective strategy to retain employees, and should play a key role in businesses’ strategic plans to keep talent
The true cost of losing employees
Retention will be one of the biggest challenges businesses will face in 2025. Acquiring new talent is exceedingly expensive, with the average salary in the UK in 2024 being £37,400, employers could face costs of between £11,200 and £74,900 to replace departing talent. Not to mention the negative impact a departure can have on a team, with other employees left to fill the gap and facing decreased morale after losing a valuable colleague. With so many employees planning to quit, companies could be facing large talent acquisition expenses; to tackle this, businesses need to implement strategic retention plans.
How the UK compares to global trends
Added to this, UK workers are more inclined to quit their jobs than employees in other major economies, with only 19% of US workers and 18% of Australia’s employees quitting. Germany is the only country surpassing the UK, with 24% of workers planning to move on in 2025. In such an unpredictable landscape for UK businesses, they must prioritise strategic workforce management. The key challenge for organisations will be boosting employee retention in the face of these figures, which will have a direct impact on overall performance and business survival.
L&D: The key to retention
Investment in learning and development can be a highly effective strategy to retain employees, and should play a key role in businesses’ strategic plans to keep talent. In fact, LinkedIn’s Workplace Learning Report revealed businesses that prioritise career development outpace others on key indicators of business success. Therefore as organisations seek ways to improve employee retention, offering growth and learning opportunities to keep the workforce engaged could be the solution. According to recent UK data, around only 10% of employees feel truly engaged in their work, highlighting an urgent need for improved learning and development opportunities. These can help immerse employees, making them more productive, satisfied and connected to their work, and increasing the likelihood they stay within their current organisation.
Employees across all generations want growth and learning opportunities. Whether Gen Z, Millennials, or Generation X, everyone wants to learn new skills related to their roles that will support them to progress to the next level. According to the LinkedIn Learning report 2024, 53% of Gen Z agree that, through learning, they can explore potential career paths at their company. It’s therefore crucial that L&D teams work alongside senior leadership teams to establish how L&D can best serve the company’s retention goals, assess employee learning needs, and measure the effectiveness of action taken towards business goals.
Personalised learning: A game-changer
L&D teams can then create learning opportunities that address the specific needs of their employees. However, it’s important to note that businesses shouldn’t just create generic learning opportunities. They should instead ensure they’re investing in the right learning that will benefit employees. For example, rather than rolling out blanket learning programmes, they should consider tailoring learning plans to each learner’s unique needs.
AI and automation
Personalised learning plans for employees can be a tricky strategy to implement especially at large scales. Thankfully, workflow automation can enable learning to be personalised quickly, even at larger scales. Additionally, AI and automation has the potential to revolutionise the way we engage and develop employees, paving the way for more individual, impactful learning experiences. New Learning Management System technology is emerging that enables completely tailored learning journeys, adapting dynamically to individual interests, needs and goals.
Imagine AI-powered systems that identify a learner’s unique preferences and deliver perfectly timed prompts to guide them towards success. These tools could adjust pacing, provide reminders, and track progress with precision, helping employees stay focused on their objectives. In addition to AI, modern learning platforms, mobile learning, and on-demand resources have made learning even more accessible to employees.
Using individualised learning plans as a strategy to promote workplace engagement will be key to retaining talent. Tapping into employees’ increasing desire for self-improvement can help build a more skilled and motivated workforce to drive success, create a thriving workplace culture, and maximise employee retention.
Aisling MacNamara is Director of Learning, Enablement and Inclusion at LearnUpon
