ffering comprehensive Learning and Development( L & D) programmes may seem like a sure-fire way to upskill employees, but did you know they have a direct link to Return on Investment( ROI)? In fact, businesses that have implemented strategic training programmes achieve 218 % higher income per employee and 24 % higher profit margins than those that spend less on development, according to the Association for Talent Development and the LinkedIn Learning 2026 report.
Upskilling vs hiring The Josh Bersin Company shares that 74 % of businesses“ are not keeping up with their company’ s demand for new skills,” causing them to spend“ US $ 400bn on training, content libraries, L & D technology, trainers and learning consultants.” In fact, it’ s six times more expensive for businesses to recruit an external specialist than it is to upskill an existing employee to fill a high-value role – this is what’ s known as a“ hiring tax.” Although this hidden tax can easily be overlooked on balance sheets, leaders should note that when they’ re hiring new employees, they’ re absorbing recruiter fees, sign-on bonuses and relocation packages – to name just a few expenses. Leaders should also note the initial learning period for new hires, where they’ re learning the ropes of the company, rather than producing value. These costs can add up, with internal upskilling typically costing between US $ 15,000 and US $ 20,000; the total bill for an external tech hire can easily exceed US $ 100,000, according to The Josh Bersin Company. Companies looking to save money should therefore focus on leveraging the existing workforce, as current employees understand the culture, systems and clients, strengthening their time-to-value.
90 June 2026