Here’s a troubling trend we’re witnessing right now: Organisations are taking extreme approaches to their Learning & Development strategies. Some are dismantling entire L&D teams. Others are clustering them together in hopes of finding efficiency. And many? They’re simply slashing training budgets to the bone.
The root cause? More often than not, it’s because L&D hasn’t been properly aligned with organisational growth objectives. When training becomes a tick-box exercise—something done because it’s ‘supposed’ to be done rather than strategically planned—it’s no wonder it’s seen as dispensable.
Sound familiar? It should. It’s the same knee-jerk reaction we’ve seen with marketing budgets for decades. When cash gets tight, these supposedly ‘non-essential’ departments often face the chopping block first.
But here’s the brutal truth: In today’s business landscape, this thinking isn’t just short-sighted—it’s dangerous.
The Cost of Standing Still
Think about this: Whilst you’re pulling back on developing your people, your competitors are likely doing one of two things. They’re either making the same mistake (giving you a golden opportunity), or they’re doubling down on development (putting you at risk of falling behind).
Let’s be crystal clear about what happens when organisations choose to stand still:
Your best talent walks out the door. They’re not just leaving for better pay—they’re leaving because they see no path for growth. In an era where skills become obsolete faster than ever, your top performers know that staying relevant means constant learning.
Your competitive edge dulls. Every day you’re not evolving is a day your competitors potentially are. Market leaders don’t emerge by accident—they’re built through consistent, intentional development of their people and processes.
Your ability to adapt crumbles. When you cut learning and development, you’re not just saving money—you’re sacrificing your organisation’s ability to change direction when needed. And in today’s market, that ability isn’t a luxury—it’s survival.
The Real Cost of Cutting Learning and Development
Let’s put this in perspective. When you cut training and development:
– You’re not saving money—you’re borrowing against your future at a terrible interest rate
– You’re not streamlining operations—you’re creating knowledge gaps that will cost more to fill later
– You’re not increasing efficiency—you’re setting yourself up for expensive reactive measures instead of proactive development
The Measurement Misstep
One of the biggest failures we see is the inability to measure training’s true impact. When L&D initiatives aren’t tied to concrete business outcomes, they become easy targets for cost-cutting. Consider:
– How many training programmes can you directly link to improved business performance?
– What metrics are you using to measure learning effectiveness beyond completion rates?
– Are your learning objectives aligned with your organisation’s strategic goals?
Transform Uncertainty into Opportunity
So what’s the answer? How do you build a business that doesn’t just survive change but thrives on it?
1. Make learning part of your DNA
Start viewing development as essential infrastructure, not a nice-to-have extra. Your people’s ability to learn and adapt is your organisation’s immune system against market disruptions.
2. Align learning with strategy
Every significant training investment should directly support your organisation’s growth objectives. If you can’t make that connection, you need to rethink the programme.
3. Measure what truly matters
Stop focusing solely on training costs and completion rates. Start measuring business impact:
– Revenue per employee before and after training
– Customer satisfaction scores in areas where training has been deployed
– Time-to-competency for new skills and processes
– Return on learning investment (ROLI)
Questions That Demand Answers
Ask yourself:
– If your competitors doubled their development budget tomorrow, how long would it take you to feel the impact?
– What’s the real cost of having a workforce that’s falling behind the curve?
– How many opportunities have you missed because your team lacked the skills to seize them?
– Can you honestly say your L&D strategy aligns with your business objectives?
The Path Forward
The truth is, staying still isn’t really an option. You’re either moving forward or falling behind—there’s no middle ground. The choice isn’t whether to invest in development, but how to do it smartly and strategically.
Here’s your wake-up call: The organisations that will thrive in the next decade aren’t the ones with the biggest budgets or the most resources. They’re the ones that have built learning and adaptation into their DNA, aligned it with their strategy, and can prove its worth.
Don’t let short-term thinking create long-term vulnerabilities. Start viewing development as what it really is: not a cost centre, but your insurance policy against irrelevance.
Remember: The cost of learning may be high, but the cost of obsolescence is always higher.
What’s your next move?
Cognitive Union is a progressive, boutique learning and performance consultancy. We work with forward-thinking businesses. Transforming their people. Shaping their culture. Helping them embrace change and take on the world. Find this blog useful? Sign up to our email newsletter (bottom of this page) where you can receive articles like this and other insights (not publically published), and you can also follow us on LinkedIn.