When the economy shifts and budgets tighten, many organizations rethink how they invest in talent. With continued pressure to upskill employees, adapt to AI-driven change, and build internal mobility, the question doesn’t become whether to support talent development, but how to do it more strategically.
We asked experts across L&D, HR, operations, and finance to share one talent development move companies should make to strengthen their strategy amidst current economic pressures. Here’s what they said.
4 ways to make talent development work harder when the economy slows
1. Don’t just build skills, build the right ones
“Build L&D programs around the skills your company actually needs. That can mean skills for roles you’re struggling to staff, building new or emerging skills, or, reinforcing durable skills like communication and adaptability so your teams can handle whatever comes next.” – Lara Peavler, Senior L&D Manager
“Help guide your employees towards the mission-critical roles you need to fill with well-defined career paths that include the education and training to get there. Your highest potential employees will engage, and it’ll help you find talent from within that you didn’t know you had.” – Patrick Donovan, Chief Operating Officer
2. Turn HR into a strategic engine
“Use talent development to prove HR’s impact on the bottom line. Programs that drive internal mobility, retention, and AI readiness help the business stay competitive. Consider: employees in strategic education programs have a 90%+ retention rate, and are promoted at 3X the rate of their peers.” – Michelle Hamilton, VP of People
“The move I’m seeing from companies right now: tie talent development to performance goals and track outcomes. This drives financial value—we typically see 2x the tuition costs involved, regardless of what’s happening in the broader economy. This is a long-term game with many short-term gains.” – Steve Green, SVP, Corporate and Learner Engagement
3. Don’t forget your employees
“Keep the cost of living in mind. Don’t make employees pay to grow. Any talent development initiative you put in place now should lower costs for them, not add more to their plate. That’s what drives usage and equity.” – Stephen Chu, Chief Legal & Administrative Officer
“Incentivize skill development. Whether it's a visible career path or a shout-out in a department meeting, if you cheer on your talent when times are good they are more likely to stick with you when times are tough. I love Action Behavior Centers’ approach to this. They have a "promotion alert" post on LinkedIn 1-2x a week!” – Wendy Jepson, Sr. Client Success Manager
4. Optimize for ROI
“When the pressure’s on, invest in what saves you money. Replacing people is expensive. Growing them is cheaper, faster, and builds an engaged workforce that sticks around.” – Mike Jonas, Chief Financial Officer
“I look at talent development like any other investment—there has to be strong returns. These programs should improve how your teams operate, not just what they know.” – Elaine Williams, Director of Operations
Do more than weather the storm
Even in uncertain markets, companies that stay focused on strategic talent development are better positioned to navigate disruption and build future momentum. These expert-backed moves can help you make the most of your education investment, retain top talent, and build a workforce that’s ready for whatever comes next.
Ready to recession-proof your workforce? This guide breaks down how to fast-track skill-building within your business to start building a stronger workforce today.
