The Next Big Opportunity in Business Isn’t AI – It’s Employee Development

When we think about the “next big thing” in business, artificial intelligence often takes the spotlight. And while AI has proven valuable in automating routine processes, it’s not the answer to every challenge. In fact, as we move deeper into the AI era, its impact is already showing diminishing returns for many companies. For most, AI might save time or improve accuracy in some processes, but it doesn’t fuel the most important driver of business success: people.

The real, untapped opportunity for growth, innovation, and long-term advantage lies in a different area altogether – education. Specifically, the learning and development (L&D) of employees. Here’s why prioritizing employee development can create far more value than the latest technology ever could.

Why Employee Development Matters More Than Ever

People are a company’s greatest asset and opportunity for innovation. Today’s job landscape is competitive and demanding, and employees understand the need to continuously upskill. According to SurveyMonkey, 59% of employees believe that training improves their job performance, and 45% say they’re more likely to stay in a role if they receive development opportunities (Built In).

And turnover today is more costly than ever.  According to Gallup’s research, replacing an existing worker can cost ½ to 2x the employee’s annual salary.

Investing in employee development could be the difference between high turnover and a loyal, high-performing team. 

The numbers are clear: Over 90% of employees say they’d stay in a role if they had ongoing learning opportunities (LinkedIn). Developing your people isn’t just an expense—it’s a strategic investment in growth.

Companies See Real Returns When They Invest in Employee Learning

For companies questioning whether L&D truly impacts the bottom line, the data is telling. Companies with comprehensive training programs see 218% higher income per employee than those without (Forbes). Training also drives engagement and efficiency; companies are 17% more productive when employees receive the training they need (Gallup).

And it’s not just about keeping employees for longer. Engaged employees bring new ideas and improvements that can drive revenue and help the company adapt to change. When employees grow, companies don’t just retain talent—they gain new insights, innovations, and opportunities for expansion from within.

Why L&D Programs Often Miss the Mark – And How We Can Improve Them

Many current L&D programs don’t fully meet employees' needs. 

A staggering 43% of employees who receive training report that it’s ineffective (Axonify), and less than one-third of employees don’t feel optimistic about the opportunities they have for training to learn new skills or upskill (SHRM).

One way to improve L&D quality is to make training more experiential. Rather than just one-off workshops or slide presentations, we should integrate real-life application, interactive scenarios, and project-based learning. Employees retain and apply skills more effectively when they experience them directly in relevant contexts.

Another often-overlooked area is performance psychology. By incorporating techniques that help employees manage stress, set achievable goals, and cultivate resilience, companies can prepare their people to handle challenges not only at work but also in their personal lives. Consider including resources that help employees navigate personal milestones, such as marriage, parenting, managing finances, or caring for aging parents. This type of support demonstrates a deep understanding of employees as people and can relieve some of the biggest stressors in their lives, allowing them to show up as their best selves at work.

In addition, many employees want to grow in areas that aren’t just job-specific but personally meaningful. For instance, 76% of Gen Z employees believe that continuous learning is vital for a successful career (LinkedIn). Providing resources that acknowledge personal development needs helps build a culture of well-being, trust, and loyalty.

People Are Your Best Source of Innovation and Growth

In a world focused on automation and AI, it’s easy to forget that people are the source of almost all new ideas. A company’s growth and innovation don’t stem from algorithms or automated processes; they come from human insight, creativity, and problem-solving. It’s the employees on the ground who see emerging customer needs, spot inefficiencies, and think of ways to improve products and services.

Imagine the impact if all employees felt empowered and equipped to contribute ideas that could drive growth. Employees at organizations with high internal mobility stay twice as long as those without such opportunities (LinkedIn). This longevity doesn’t just retain talent; it deepens institutional knowledge and encourages a culture where employees are more likely to contribute to long-term growth initiatives.

A New Approach to Learning and Development

It’s time to rethink the role of L&D and reposition it as a key driver of both employee engagement and business growth. By rebranding HR as Human Resources & Development and expanding L&D to include more personalized, experiential, and psychologically supportive elements, companies can create a more engaged, resilient workforce.

With over 92% of employees stating that workplace training positively impacts their job engagement (Axonify), this isn’t just about improving individual performance—it’s about creating a competitive advantage. 

When people grow, companies grow. 

And for businesses looking to thrive in an increasingly uncertain world, investing in your people is one of the best bets you can make.

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If you are looking to boost employee retention and the bottom line, reach out to me (ian@ianscottcohen.com) and we can chat about your team's current L&D efforts - I'd be happy to help.