Large companies — those with $500 million or more in annual revenue — are three times more likely to say that gaining leader or stakeholder buy-in for new talent initiatives is a major challenge, according to a Nov. 21 report from Deloitte Private.
Company leaders overall said they faced challenges such as the potential for low employee engagement, uncertainty measuring effectiveness and disruption to current workflows.
Even so, 73% of private companies plan to increase their investment in talent development during the next 12 months, the report found.
“Many of the preeminent priorities among private companies are talent-centric, ranging from enhancing employee productivity to developing and establishing new leadership,” Wolfe Tone, vice chair and U.S. Deloitte Private leader, said in a statement.
“Investments in talent development are the cornerstone of fostering an engaged and collaborative workforce while ensuring an organization remains competitive and is poised to adapt in the future,” Tone said. “While learning and mentorship programs are important pillars to a workforce development strategy, components like well-being and employee satisfaction also play a part in establishing a workforce aligned to company goals and forward progress.”
In the survey of 100 C-suite and other top leaders at private companies, productivity and leadership succession were named as the highest business priorities in 2025. About 70% said employee engagement is one of the most important outcomes of employee development programs.
To support this, leaders said they plan to turn to innovative talent development and mentorship strategies. For instance, 69% said reverse mentoring was the top strategy adopted within the last year, which helps to address skills gaps among both early-career employees and senior leaders.
Other top strategies included training employees on AI (64%), as well as on-the-job training and apprenticeship programs (52%). In the next year, 72% said they plan to increase apprenticeship and mentorship programs.
Leaders from larger companies were more likely to say in-office events were effective for maintaining corporate culture and much more likely to say in-office events would increase during the next 12 months. In fact, 87% of larger company leaders said in-office events would increase, as compared to 9% of smaller company leaders.
To demonstrate return on investment (ROI) for training, learning leaders should clarify learning and development metrics, according to a McLean & Co. report. In particular, L&D teams should establish the purpose of measurement and incorporate key players’ perspectives, the report found.
The average ROI for leadership development is $7 for every $1 spent on training, according to a BetterManager report. The ROI stems from increased revenue and sales due to leadership development participation, as well as cost savings from higher retention and lower recruiting costs, the firm found.
When budget constraints restrict hiring, reskilling workers can manage costs and fill roles, according to a survey from Express Employment Professionals. About 68% of hiring managers said they plan to reskill employees in the next year, including through company-led training sessions and on-the-job training by employees.
