Key challenges and best practices in T&D and ROI

In the modern industry HRM faces set of challenges while planning, designing and implementing the training program. HRM should overcome these challenges strategically

 

Identify the training needs

👉Challenge

HRM should carry out accurate training needs analysis to design effective training and development programs. This will be a challenge due to

• Unclear organization goals
• Communications issues
• Unavailability of data
• Difficulty in measuring soft skills
• Bias in self-assessments

👉Best Practices

To analyze the training needs effectively organization must establish well-defined goals. The training programs should align with those objectives. If reliable data is unavailable, it’s essential to implement data collection methods such as questionnaires, surveys, interviews, and performance evaluations to gather the required data. HRM should wisely select the appropriate data collection methods to align with the different levels and categories of employees to minimize communication gaps. Utilizing the latest technology such as AI-powered analysis tools may enhance the accuracy of the data.

 

Budget and cost constraints

👉Challenge

Granting the budget approval from the top management is a significant challenge for HRM. Due to the lack of the understanding regarding the value additions of training program may lead to budget reduction or rejection, ultimately effecting on T&D program effectiveness.

👉Best Practices

Before submitting the budget, HRM must conduct a pre-evaluation of the expected ROI to justify investment to management. This will highlight the existing skills and knowledge gaps and demonstrate how the proposed training program will effectively address those issues and challenges. Post-evaluation of ROI helps HRMs to demonstrate the actual benefits of the programs. Positive results may build the top management's trust in the training and development programs which may help for future approvals. If the management decides to limit the budget, HRM should optimize the training program with available resources. For example, internal training can be conducted instead of hiring external trainers.

 

Engaging employees in the training

👉Challenge

Engaging employees in the training can be challenging task due to several factors.

• Resist to change
• Reluctant to step out from the comfort zone and take on new challenges.
• Time constraints
• Managers refuse to allocate employees for training programs due to tight targets and deadlines.
• Lack of understanding of program value
• Employees do not have a clear understanding of the improvements in knowledge, skills and abilities that arrived from the program.

👉Best Practices

To engage employees more effectively in training programs, HRM can implement the following strategies.

• Arrange knowledge-sharing sessions to educate employees on the importance and the benefits they can get from training and development.
• Plan in advance the programs allowing managers to plan their processes and allocate employees to the T&D programs without disturbing the production.
• Arrange training programs more attractively and effectively.

Retain the training workforce

👉Challenge

Training enhances the knowledge, abilities and skills increasing the value of employees. As a result, there may be a risk of employees leaving the organization to join with other companies who offer higher salary scales.

👉Best Practices

If the employee exceeds the expected performance from the training, HRM should assess the new value of the employee in comparison to similar positions in other industries. Based on the evaluation current benefits and compensation should adjusted accordingly. If the training cost is significant and the content is complex, some companies may require employees to sign an agreement stating that upon the completion of the training, employees must continue with the company for a certain period of time. This will ensure the return on investment to the company while growing the employee's career.

Rapidly evolving business environment

👉Challenge

With the evolution of Industry 4.0, the industry environment is changing rapidly. Training provided today without a proper plan may become obsolete tomorrow. For example, technology may replace the tasks performed with human skills.  

👉Best practices

It is essential to anticipate the future possibilities, constraints and threats to manage them successfully in the future. HRM should properly plan training programs with these factors in mind. For example, Artificial Intelligence (AI) analytics tools may be replaced with data analysts role. In such cases providing training on data analytics without incorporating AI concepts will be ineffective in the near future.

Measure accurate Return On Investment (ROI)

👉Challenge

ROI primarily highlights the financial impact of the training on the organization. However, demonstrating the exact ROI results can be challenging in certain types of training, such as leadership and behavioural training. It takes time to see the effect of the training and also it’s difficult to isolate the direct impacts that come from the training from other factors that influence the performance..

👉Best Practices

HRM should properly plan the evaluation process well in advance. The data collection should start before the training and continue as necessary after the training. That will help to evaluate proper ROI in both the short term and long term.

References

Overcoming the Barriers that Prevent Training. Available at https://www.mcpmanagementtraining.com/blog/overcoming-training-barriers [Accessed: 28 March 2025 ]

Mariana M. (2023) Training Needs Analysis: Challenges and Solutions. Available at https://voxy.com/blog/training-needs-analysis/#:~:text=Assessing%20workers'%20competencies%2C%20aligning%20with,some%20of%20the%20key%20challenges [Accessed: 28 March 2025 ]

10 Challenges You Can Solve With Training And Development. Available at https://www.gyrus.com/blogs/10-challenges-you-can-solve-with-training-and-development [Accessed: 28 March 2025 ]

Kurricula. (2024) Measuring ROI in L&D: Key Challenges. Available at https://www.linkedin.com/pulse/measuring-roi-ld-key-challenges-kurricula-hei6e [Accessed: 29 March 2025 ]