Is L&D The New Job Security In Times Of Layoffs?

Savi Khanna Sep 24, 2024

Workers are no longer looking for a job that they can stay in for decades, instead, they want skills that will make them employable across multiple sectors. With traditional job security becoming increasingly elusive, many believe that L&D could be the new form of stability

In this volatile job market, where layoffs seem to make headlines regularly, learning and development (L&D) has taken center stage. Companies are increasingly using L&D not just as a tool for upskilling but as a strategic lifeline to navigate the uncertainties of economic shifts, technological advancements and changing workforce demands. The question now is: can robust L&D programmes provide a sense of job security in an otherwise unstable environment?

The Evolving Job Market & Layoff Landscape

In 2024 alone, major layoffs have been reported across industries, especially in tech and retail. The World Economic Forum’s Future of Jobs Report 2023 predicts that over 83 million jobs will be displaced by automation and economic shifts by 2027. However, the same report highlights that over 69 million new roles will be created during this period, emphasising the need for re-education and upskilling to stay relevant.

“The old job-based structure is becoming outdated in today's rapidly changing labor market, particularly in SaaS-based product firms. As roles develop and technology replaces repetitive work, firms must shift to a skill-based strategy in which individuals are rewarded for their skills rather than their jobs. This move results in a more adaptable workforce that can adjust to changing needs, reducing the need for layoffs,” says Krishnan Nilakantan, chief learning officer, Ramco Systems.

L&D is no longer just a corporate buzzword but has become a necessity for survival. Companies and employees alike are realising that skills learned five years ago may already be obsolete today. The demand for adaptability and continuous learning is rising and companies that fail to invest in their workforce’s development may face more talent gaps and increased turnover.

Learning As A Strategic Response To Layoffs

Amid economic uncertainty, layoffs become an unfortunate reality for many companies. But organisations that focus on strong L&D programmes are seeing that it not only helps in retaining top talent but also mitigates the negative impacts of job cuts.

“Setting up an internal skilling factory allows businesses to proactively handle layoffs by constantly re-skilling and upskilling its personnel. Instead of losing talent, firms may transfer people to areas of development by enhancing their skills. For example, transferring a software engineer to a data analyst function with focused learning interventions helps to retain talent inside the firm while also meeting business demands in real time,” adds Nilakantan.

According to Deloitte 2024 Global Human Capital Trends report, companies with a solid investment in L&D are 30 per cent less likely to experience high turnover during crises. Furthermore, LinkedIn’s Workplace Learning Report 2023 revealed that 94 per cent of employees would stay at a company longer if it invested in their career development.

“Technology-led transformation and the evolution of AI will continue to disrupt and expedite the pace of change for organisations. Relevance is and will continue to be the currency and will determine the success of any organisation. Anticipating the future needs of our client industry segments and addressing those through robust capability-building interventions has been our key strategic pursuit,” highlights Yugesh Mandvikar, head of L&D, Zensar Technologies.

Workers are no longer looking for a job that they can stay in for decades, instead, they want skills that will make them employable across multiple sectors. In fact, 78 per cent of employees globally believe that learning opportunities will be key to their career longevity, as per McKinsey & Company's Global Survey on Future Workforce Needs.

Can Job Security Transform Into Career Security?

With traditional job security becoming increasingly elusive, many employees are asking if L&D could be the new form of stability. While job security often refers to the assurance of not being laid off, career security is about having a portfolio of skills that remain valuable regardless of industry shifts.

“Employers who invest in their workforce development can ensure a more nimble, adaptable and resilient organisation. In times of economic uncertainty, companies are more likely to retain those who possess up-to-date skills and demonstrate the ability to learn, innovate and solve critical problems. Employees should aim for a growth mindset by combining continuous learning with strong performance, networking and staying informed about industry trends to maximise their job security in turbulent times. However, if layoffs do occur, those who have invested in their own development are often more competitive in the job market as they possess a broader skill set making them attractive candidates to future employers,” shares Vivek Gupta, senior director- performance & learning, MPower Financing.

Gartner 2023 Future of Work Trends study showed that employees who invest 20 per cent of their time in learning new skills are 50 per cent more likely to be retained during restructuring.

“Traditional career pathways have evolved in light of the rapid pace of change and the evolution of technology. The career contours are shifting and staying ahead of the curve requires learning agility and a growth mindset. Through personalised development journeys, structured learning programmes, coaching and mentoring, and informal learning, we can enable employees to strive toward their career aspirations,” adds Mandvikar.

Some of the trending L&D programmes in 2023-24 include:

Tech and digital transformations are at the heart of modern L&D programmes. AI-driven platforms like Coursera, LinkedIn Learning and Udemy are offering hyper-personalised training programmes that adapt to an individual’s learning style. In fact, LinkedIn’s 2023 Global Talent Trends report shows that 84 per cent of employees prefer self-paced learning tools, highlighting the shift toward more accessible and flexible training opportunities.

There is a significant focus on AI and machine learning, leadership development, cybersecurity and most importantly, emotional intelligence (EI). The use of AI-driven insights, adaptive learning platforms, and virtual reality (VR) simulations have made learning more interactive and effective.

“Technology is no longer just a tool for learning, rather it is a bridge to the future. Digital platforms, AI and data analytics enable personalised learning experiences that are as dynamic as the challenges we face,” explains Jagjit Singh, AVP & head of L&D, Subway India.

The World Economic Forum also highlighted the power of VR in training programmes, noting that employees who use VR-based learning are four times more engaged than those in traditional classroom settings. Moreover, PwC’s Global Skills Survey from 2023 showed that 72 per cent of companies that invested in AI-powered L&D solutions saw a direct increase in employee productivity within six months.

Why L&D Is Essential For Organisational Growth?

Beyond the benefit to employees, L&D programmes have a clear business advantage. Companies with comprehensive learning strategies report 23 per cent higher profitability, according to a 2023 LinkedIn Learning study. Additionally, companies that invest in employee development are more innovative, agile and better prepared to pivot during economic downturns.

“An organisation’s growth is directly tied to its people’s growth. Investing in L&D is not just about enhancing skills; it is about creating a culture of continuous improvement and innovation,” adds Singh.

The landscape of job security is changing, but the answer lies in continuous learning and adaptability. In an economy where layoffs are becoming the norm, L&D can serve as a powerful buffer. Both employees and organisations must invest in lifelong learning to stay ahead of industry trends, making L&D not just a perk but a necessity for long-term success.