2025 L&D Impact Survey

We asked 800+ UK and US based L&D, HR and talent professionals from a wide range of sectors and organization sizes about the most in-demand human skills, the importance of measurement, the buoyancy of L&D budgets and of course, the adoption of AI for L&D.

Key findings Key findings

Delivering a blend of critical skills in a manner that engages and retains employees. ​
Supporting broader people and business goals. Understanding how AI and digital technologies will transform work and development. Operating under economic uncertainty and resource constraints. For L&D, 2025 presents a long list of demands.​

But those in the function have been here before and recognise what impactful delivery looks like. Indeed, the Hemsley Fraser 2025 L&D Impact survey revealed a function that understands that many challenges it must face are similar in detail to previous operating paradigms. But that doesn’t mean there isn’t an evolution in the challenges practitioners must face: from how to use AI effectively to how to develop the right blend of digital proficiencies and human skills needed for individual and organisational success in a constantly transforming business landscape. ​

Of course, the stakes are high, and challenges are hardly small, but practitioners revealed they are also acutely aware of how to meet learner needs and support organisational objectives and are ready to face up to broader talent and business demands. Positively, despite hurdles to surmount, respondents are also aware of the strategies, partnerships, technologies and learning delivery methods as well as understanding that will allow the function to, yet again, deliver. Once again demonstrating the essential role of the learning function.​

For our 2025 L&D Impact Survey we asked 822 L&D, HR and talent professionals across the UK and North America from a wide range of sectors and organisation sizes about the latest reality and changes of the L&D practice.​

 

Reflecting on last year

2025, for L&D not least, has been challenging. But for those with L&D responsibilities, this state of play isn’t new. Last year, our survey respondents told us they were grappling with tensions over working structures and difficult financial headwinds resulting in budget-related, resourcing, and capacity issues. Twelve months on, little has changed. ​

This year, investment, or lack thereof, in L&D is top of mind: 53% of respondents said both economic uncertainty and increased costs were the top issues. Indeed, an average of UK survey respondents shows an almost half a percentage point cut in budgets going forward. ​

Although US practitioners are more confident about getting investment, there are across-the-board worries about delivering in changing working structures (RTO vs remote or hybrid) and fronting up to ongoing digital transformation. ​

 

The ongoing challenges for L&D

In this squeezed landscape, businesses will have to make tough calls. Here, L&D, again, will have to show its worth. Respondents told us they have the challenge of keeping L&D relevant and engaging for employees as technology and operational paradigms change. All while grappling with shifting foundations, limited resources, and less time for learning. And that’s just for typical training, before even considering what AI even means for capability development. ​

As one respondent told us: “It’s about budget constraints and [finding time for L&D amidst] workload for all employees across the business.”​

But L&D can step up. In previous years, the function has looked for efficiency of impact, meeting learners where they are with improved experiences of learning. Now practitioners are looking for ways they can tie L&D to supporting organisational performance objectives, integrating new technology and winning leadership and employee support for initiatives. ​

They know they must do so as L&D is tasked with big-ticket business demands: boosting talent retention, engaging employees and supporting organisational goals, much the same as it was in 2024.​

L&D delivering impact across 2025​

As L&D recognises the challenges it must contend with, survey respondents are certain they know how to deliver. Both US and UK practitioners told us it was about engaging employees, integrating new technology effectively and managing competing priorities to get buy-in from the boardroom to the proverbial shop floor. ​

“It’s about ensuring time to complete training items, meeting all training needs and ensuring all in-person training is being tracked,” ​
one US survey respondent said.​

To succeed, L&D is increasingly focused on measurably supporting organisational performance. It’s telling that the business impact assessment of development activity had grown 12% YoY. That’s not to say L&D is ignoring the individual learner, especially when training activities are concerned with delivering boosted soft skills and being engaging. ​

Clearly, why the top feedback method on L&D success is learner feedback, used by 82% in the UK and 67% in the US. ​

In fact, Randstad found over four in 10 employees would quit if they were offered no learning while 88% of organisations are concerned about employee retention – with learning their number one retention strategy. ​

Continue reading

Continue reading to discover the biggest challenges facing L&D in 2025, the essential human skills needed to thrive, and how L&D is empowering organizations and individuals to navigate uncertainty.