U.S. Employee Engagement Hits 10-Year Low
In the last edition, I summarized key insights from the Future of Jobs Report 2025 by the World Economic Forum, highlighting the rise of Generative AI, its growing adoption, and the critical need for upskilling and reskilling. Yet, as our Future Work Alumnus Phil Kirschner aptly put it:
“A massive report came out saying reskilling is critically important, but a smaller one snuck in behind saying it's not happening enough yet. 😬”
A recent Conference Board survey underscores this disconnect—62% of CHROs prioritize AI experimentation, yet only 7% are actively reskilling employees in roles where AI is set to replace at least 25% of tasks. The gap between strategy and execution is widening, leaving companies at risk of falling behind in workforce readiness.
So today, I’m diving deeper into L&D trends from the TalentLMS 2024 Benchmark Report, exploring whether corporate training is keeping pace with evolving workforce demands. Let’s dig in. 🚀
The TalentLMS 2024 Annual L&D Benchmark Report
The TalentLMS 2024 Annual Learning & Development (L&D) Benchmark Report provides a comprehensive analysis of the current state of training across different generations in the workforce. With a survey conducted among 1,200 employees across various industries, the findings reveal critical insights into how organizations can optimize their training programs to meet the evolving needs of their workforce.
The Current State of Training Across Generations
Employee training continues to play a crucial role in workforce development, but satisfaction levels vary across generations.
According to the report, 79% of employees expressed satisfaction with their training, showing an improvement from 75% in 2022. However, this satisfaction is not evenly distributed. Millennials are the most satisfied generation (83%), whereas Gen Z lags behind at 75%, reporting the highest dissatisfaction rate (13%).
This generational gap highlights the need for more personalized learning approaches. Gen Z, being digital natives, expects more dynamic and interactive training formats, while older generations are more accustomed to traditional training methods.
Is L&D Keeping Up with AI?
The rise of AI in workplace training has introduced both opportunities and challenges.
While AI has revolutionized learning by making training more interactive and efficient, many organizations are struggling to keep pace. The report reveals that nearly half (49%) of employees believe AI is advancing faster than their company’s training programs can keep up.
A significant issue is the lack of clear guidelines on AI usage. More than half of employees (54%) report that their organizations do not provide explicit instructions on integrating AI into their workflow. Additionally, while 35% of employees are encouraged to use AI tools, over 10% work in environments where AI use is entirely prohibited.
Despite these challenges, employees are eager to embrace AI. About 64% of respondents expressed a strong desire to receive AI-related training. Millennials (74%) are the most enthusiastic, while Gen Z (56%) ranks the lowest—likely due to their existing familiarity with AI. However, concerns about AI’s impact on skill retention persist. While 42% of employees believe AI positively impacts their skills, 41% fear that technological advancements are causing their skills to lose relevance faster.
The Evolving Landscape of Workplace Skills
The workplace is undergoing rapid transformations, with nearly half (44%) of today’s skills expected to become obsolete by 2028. This decline in skill longevity has led to an increased emphasis on upskilling and reskilling. However, the pressure is mounting—two-thirds of organizations expect a return on investment from skills training within a year of implementation.
Leadership and management skills remain a top priority across all generations. However, while Baby Boomers prioritize soft skills training, Gen Z ranks mental health training among their top three learning priorities. This shift underscores the growing awareness of workplace well-being among younger employees.
Another critical issue is generational communication gaps. The report found that 23% of employees struggle to communicate with colleagues from different age groups. This challenge is most pronounced among Gen Z, who are three times more likely than Baby Boomers to report communication difficulties.
Challenges Employees Faced with Training
Despite advancements in learning and development, employees still face significant hurdles in accessing effective training. The top barriers identified in the report include:
- Lack of time
- Lack of motivation
- Knowledge retention
A notable generational difference emerged regarding these challenges. While time constraints were the primary issue for Gen X, Millennials, and Baby Boomers, Gen Z cited motivation as their biggest obstacle to learning.
Another concerning finding is that 23% of employees hesitate to ask for additional training due to unclear budget allocations. This indicates a need for more transparency in training investments.
The Link Between Training and Retention
The correlation between training and employee retention remains strong. In 2024, 24% of employees stated they would seek new job opportunities in 2025 if their company failed to provide sufficient training. This marks a decline from 41% in 2023, suggesting that improved training experiences are reducing turnover risks.
However, retention tendencies vary across generations. Gen Z employees are 5.3 times more likely than Baby Boomers to switch jobs due to inadequate training.
5 key L&D trends to watch for in 2025
The TalentLMS 2024 Annual L&D Benchmark Report outlines five key trends for learning and development (L&D) in 2025.
- First, generative AI tools will enhance personalized training content and skill assessments.
- Second, the focus on interpersonal and soft skills will increase as automation rises.
- Third, organizations will prioritize agile upskilling and reskilling initiatives to keep pace with technological changes.
- Fourth, there will be a shift towards skills-based learning, emphasizing practical skills.
- Lastly, personalized learning experiences driven by data analytics will allow employees to tailor their training paths.
⁉️ What's Your Take?
These recommendations are spot on for addressing current L&D challenges, but their success depends on how well organizations implement them. Here’s my take:
- Emphasizing Personalization
- Integrating AI Thoughtfully - To keep up with AI advancements, I recommend subscribing to Lead With AI Newsletter and Stay Ahead Newsletter for the latest AI news and tools. Providing your employees with real-time insights and guidance on emerging AI technologies will help them navigate new tools effectively and maximize their impact in the workplace.
- Focusing on Retention-Oriented Training
Final Thought:
Organizations that treat training as an investment rather than an obligation will gain a clear competitive advantage. The challenge isn't whether to do these things, but rather how fast companies can adapt to employees’ changing learning needs while staying ahead of AI-driven disruptions. 🚀
Read the FULL Report HERE →
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HOW HYBRID WORKS
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Welcome to this week’s How Hybrid Works, your go-to section for the latest updates in hybrid work, sponsored by Tactic.
Stay ahead of the trends with expert insights, case studies, and industry news designed to help HR, workplace, and people leaders thrive in the evolving work environment.
The Great Debate: Executives vs. Employees on Hybrid Work
With J.P. Morgan Chase & Co. and Goldman Sachs mandating full-time RTO, the big question remains—is remote and hybrid work coming to an end?
This exclusive roundtable will dive into the real gap between executive priorities and employee expectations—why do leaders push for office returns, while employees fight for flexibility? What truly works best for all?
Featuring insights from:
- Tim Oldman (Co-CEO of Aéto, Founder of Leesman Index) on executive workplace strategy.
- Phil Kirschner (Founder of PK Consulting, former WeWork & McKinsey leader) on innovative, employee-first work models.
Join us for a candid discussion on the future of work. Seats are limited and not guaranteed—secure your spot now! 👋
Hybrid Work Matters, But Culture Drives Retention
While remote and hybrid work are important, they are ultimately a choice based on company fit rather than a primary driver of satisfaction and retention.
A National Bureau of Economic Research study of 217,000 employees found that appreciation, transparent communication, career growth, leadership relationships, and fair pay matter more in shaping a positive work environment.
45% of employees who feel recognized are less likely to leave, and strong leadership and career development opportunities significantly boost engagement. Companies should focus on building a strong culture and leadership approach.
As our Future Work Alumnus Tracy Brower stated in the article: "No organization is perfect, but when employers are intentional about understanding what matters most and take action to continuously improve and deliver great experiences to employees, they drive satisfaction and retention."
RTO’s Mixed Impact: Morale, Retention, and Turnover
A Pearl Meyer survey of 300 HR leaders found mixed impacts of RTO policies, with 37% reporting improved morale and 42% noting negative effects.
While 60% of companies require employees in-office at least two days per week, 65% don’t allow employees to choose their schedule, potentially affecting retention and recruitment.
University of Pittsburgh research warns of “brain drain” attrition, with S&P 500 firms experiencing higher turnover, particularly among women, senior staff, and highly skilled workers.
✅ Quick Hits:
- WPP’s RTO Mandate Faces Backlash: WPP’s four-day RTO policy has triggered industry-wide debate, with 11,500+ signatures on a Change.org petition opposing it. Employees feel blindsided, and critics argue real estate investments, not productivity, are driving the move, potentially pushing talent to Silicon Valley and Wall Street.
- 10 Essential Remote Work Productivity Tips: Key strategies include setting boundaries, a dedicated workspace, strong internet, and a morning routine. Engaging with colleagues, limiting social media, setting realistic goals, and taking scheduled breaks can boost efficiency, prevent burnout, and maintain work-life balance.
THE FUTURE OF HR ROUNDUP
I follow and summarize the news that future-forward and people-centric leaders care about, so you don't have to.
This week:
Gartner’s HR Predictions: AI, Workforce Shifts, and Leadership Changes
Gartner outlines nine key workplace trends shaping HR in 2025, driven by AI, workforce evolution, and leadership shifts.
As retirements surge and AI reshapes work, companies must close expertise gaps and leverage AI-driven collaboration tools ("nudgetech"). 87% of employees trust AI for fairer feedback, forcing HR to redefine performance evaluation.
DEI efforts are shifting toward inclusion and belonging, while AI-first strategies risk lowering productivity if not employee-centric.
Loneliness is now a business risk, and employee activism is shaping Responsible AI adoption. HR leaders must balance AI, culture, and leadership strategies to retain talent and drive success.
Gallup: U.S. Employee Engagement Hits 10-Year Low
Gallup reports U.S. employee engagement dropped to 31% in 2024, the lowest in a decade, while actively disengaged employees rose to 17%, with Gen Z engagement falling by five points.
Key factors include a lack of role clarity, weak workplace relationships, and fewer development opportunities. The biggest declines occurred in finance, insurance, transportation, technology, and professional services sectors, amid economic uncertainty and labor market shifts.
Despite overall productivity increases, engagement struggles persist, driven by rapid organizational change, hybrid work challenges, and broken performance management systems.
Our Future Work Alumnus Jim Harter advised How HR Can Reverse the Trend—By Defining Workplace Culture, Upskilling Managers, and Prioritizing Leadership Selection.
✅ Quick Hits:
- The Rise of ‘Revenge Quitting’—A New HR Challenge: 65% of employees feel stuck in their roles, fueling revenge quitting—a trend where frustrated workers quit abruptly, sometimes deleting company data ("rage deletion") before leaving. Gen Z employees are twice as likely to engage in this behavior, with 1 in 10 admitting to data destruction.
- Should HR Allow Dogs at Work? 37% of dog owners would turn down a job without a pet-friendly policy, and 29% would take a pay cut for it, with reported benefits like reduced stress (65%) and improved morale (54%). HR should weigh office suitability, safety rules, and flexible options to balance pet-friendly perks with workplace needs.
⁉️ What's Your Take?
- Our Future Work Alumnus Ashley Herd posed “What’s Next for TikTok”—and I want to add: Why It Matters to HR? With TikTok’s U.S. ban deadline approaching on January 19, legal and political uncertainty looms. President Biden’s stance remains unclear, while President-elect Trump’s recent opposition fuels speculation about a policy shift. Meanwhile, TikTok CEO Shou Zi Chew will attend Trump’s inauguration, seated among top industry leaders like Elon Musk, Jeff Bezos, and Mark Zuckerberg, underscoring the tech sector’s investment in the platform’s future. For HR, this isn’t just about social media—it’s about talent strategy, employer branding, and recruitment. How is your team preparing for this shift? 🚀
Your Weekly Must-Read Insights about the Role of HR in the Future of Work
The world of work is changing faster than the time we have to understand it.
Sign up for my weekly newsletter for an easy-to-digest breakdown of the biggest stories.
Unsubscribe anytime. No spam guaranteed.