How Learning Impacts Employee Performance

Sep 25, 2025 | Articles, Employee Training and Employee Experience Design

Key takeaways: 

  • Aligning learning strategy with business objectives is crucial for demonstrating impact.
  • Learning directly influences employee performance and helps close skill gaps.
  • Training leads to stronger technical skills, increased confidence, and more engaged employees.
  • Thoughtful learning programs foster adaptable employees and agile organizations.
  • Investing in learning boosts employee retention and overall business profitability.

It may be hard to believe, but at more than half of companies, learning strategy is not well-aligned with business objectives.

What makes this so unbelievable is that it means most learning programs exist for relatively arbitrary reasons. At those companies, Learning and Development (L&D) has become an exercise of learning for learning’s sake. It is an environment where the only outcome for learning is its completion. The Learning function sees employees merely as “learners,” people whose sole job is to complete the programs L&D created. With this completely insular approach, is it any wonder some learning teams have such a hard time demonstrating learning’s impact on the business, let alone becoming a more strategic part of it?

However, the tide is changing; many learning professionals have seen how pivotal it is to tie learning directly to business needs. According to LinkedIn, aligning L&D initiatives with organizational goals is a key priority in 2025.

Why the change? Learning has a huge impact on employee performance, and the skills gap is showing us just how critical that impact can be. 

How does training affect an employee’s performance at work?

Learning cannot just be measured in hours and completed modules. It is not enough to assume that by its very existence, a learning program is inherently good or effective. Even programs created by highly talented designers and extremely knowledgeable subject matter experts sometimes fail to deliver expected results.

When companies provide relevant training for employees, however, the benefits can be striking.

  1. Stronger, more relevant, and up-to-date technical skills
    Skills are changing fast. The half life of a general workplace skill is reportedly five years, and the half-life of a technical skill is even shorter — at two and a half three years or less. This has posed a problem for organizations that need to skill up workers quickly. With technology evolving at breakneck speed, the skills your workforce needs are constantly (and quickly changing).What does L&D do in this situation: attempt to train every new technical skill or just  stick to basics, like compliance?Neither of these approaches is likely to provide the targeted training your organization needs. Rather than trying to train every new skill, it’s more important to focus on business goals and the specific technology needed to achieve those goals. Then L&D can create a lean training strategy that is agile enough to addressfor those specific needs, and be updated should those needs evolve. This means that L&D will need to work hand in hand with leadership and other departments to find out what exactly is required. However, this approach also arms employees with the knowledge they need to do their jobs. 
  2. More confident and engaged employees
    Employee engagement is at a low; Gallup’s latest research shows that     78% of employees worldwide are disengaged or actively disengaged at work. This is not just a problem for the employees themselves; it’s also an issue for their organizations. Engaged employees are more productive at work. Engagement can be tied directly to training; in fact Gallup itself connects the two. The organization asks a series of 12 questions to determine how engaged an employee is at work. The questions focus on the quality of an employee’s work life. I’ve bolded the questions that relate directly to whether or not an employee is receiving relevant support and training and you may notice that there are quite a few of them!     1. I know what is expected of me at work.
         2. I have the materials and equipment I need to do my work right.
    3. At work, I have the opportunity to do what I do best every day.
    4. In the last seven days, I have received recognition or praise for doing good work.
    5. My supervisor, or someone at work, seems to care about me as a person.
     6. There is someone at work who encourages my development.
    7. At work, my opinions seem to count.
         8. The mission or purpose of my company makes me feel my job is important.
    9. My associates or fellow employees are committed to doing quality work.
    10. I have a best friend at work.
         11. In the last six months, someone at work has talked to me about my progress.
         12. This last year, I have had opportunities at work to learn and grow.I explore the implications of this Gallup questionnaire and how these questions can be used to create targeted training that reduces employee burnout in my recent article, Using Learning to Combat Burnout at Work. You can read the full article here.When learners aren’t being given the tools they need to succeed at work, and when they don’t feel their role is connected to the business goal of the organization, they are likely to become disengaged. By giving them the tools and knowledge to perform well, you’re giving them the confidence to do their jobs well.
  3. Employees who connect to your mission
    Your team wants to be just that: a team. As Gallup’s research shows, employees are more engaged when they can connect to your business goals and mission. Training can help provide this connection by: Providing relevant skills for employees Explaining to employees how the skills they are learning help your business achieve its goalsL&D must understand that their learners belong to a workforce striving to make the business successful. When we think of them as just “learners,” the impact of learning starts and stops while they are engaging with content or programs. By recognizing learning’s place in the larger business universe, L&D can begin to create and deliver programs that are much more connected to the business and the skills employees need to be successful.
  4. More adaptable employees (and a more agile organization)
    Thoughtfully-designed learning boosts adaptability and problem-solving in your employees, two of the most important soft skills in a fast-changing world. By providing ongoing learning, your employees learn to handle new challenges, technologies, and processes becoming more agile and resilient. And when your team is agile, so is your organization.
  5. Employees who want to stick around
    Employee retention is a big concern for organizations, especially given the job market volatility over the past few years.Learning shows employees that their organization is invested in their future. When workers are given clear opportunities to develop new skills and prepare for advancement, they are more likely to remain engaged and loyal to their employer. Recent Gallup research shows that organizations could see an 18% increase in profit and a 14% boost in productivity by doubling the share of employees who feel they have growth opportunities. Yet only 30% of employees strongly agree that someone at work encourages their development.

By offering development, your organization can grow its workforce and keep employees on the team.

Why invest in learning? 

Learning and performance are inextricably linked, yet too many organizations fail to capitalize on that link. By looking at learning through the lens of business objectives, talent objectives and learning objectives, L&D teams can use their talent and skills to drive the kind of performance that achieves organizational goals. They will also be better able to measure and demonstrate that impact.

Learners too, will benefit. They will see their company investing in their success, gain valuable skills, and become more closely connected to their role in the organization. 

Curious whether your L&D program is really working?

Dive into What Does L&D Success Really Look Like? on the Litmos blog to explore the metrics that actually matter — from time-to-competency to employee retention — and start tracking outcomes that drive real growth. Read the article here.