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The State of L&D in 2025: Trends, Challenges and What Comes Next

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13 MIN READ

The State of L&D in 2025: Trends, Challenges and What Comes Next 

2025 was a year of acceleration, disruption and endless recalibration. AI advanced faster than expected. Roles evolved at a pace many teams just couldn’t keep up with. And employees around the world scrambled to find their footing as businesses everywhere restructured, reprioritized and reset expectations. 

This unprecedented year of change has forced many organizations to confront the realities of a workforce in flux and the capability gaps that have been growing within their teams for years. In the end, one truth has become unavoidable: Learning is truly inseparable from performance. This year has proven that L&D is not a support function but rather the very foundation on which every organization builds its stability, resilience and growth.

Shifts like these are happening across the entire industry. Over the course of the past year, our team here at The Center for Leadership Studies (CLS) has tracked how the industry conversation has evolved and noticed a clear pattern: Trends don’t exist in isolation. They often overlap, intersect and build on one another, working together to reshape how people work, learn and lead. This is where leaders need to pay attention. Only by understanding how these trends are rewriting the rules of the workplace can they learn to navigate the changes they drive and use them to their advantage. What follows is our roundup of the key trends of 2025, as well as what these trends may signal for the year ahead.

Trend #1: Skills Development at the Heart of Organizational Strategy

If we had to choose just one word that represented every L&D conversation this year, it’d have to be “skills.” Upskilling. Reskilling. Skills assessments. Skills development. Take your pick. These were the priorities that topped every organizational agenda. Why? Because over the past year, teams encountered something unavoidable: The capabilities they relied on, even as little as a year ago, no longer aligned with the work that was actually in front of them. Even the skills their team developed just six months ago may already be outdated.

Skills have been steadily losing shelf life for the last couple of years, but in 2025, it reached a critical point, limiting what teams could achieve as it became a genuine constraint. Teams felt a major strain as outdated capabilities created performance bottlenecks. L&D teams found themselves tapped in endless reskilling cycles, racing to keep pace with shifting business needs, market pressures and relentless technological advancements.

Actionable takeaways:

  • Anchor work in transferable skills: Focus on building your team’s communication, learning agility and problem-solving skills, as these are the connective tissue between changing roles, evolving expectations and new technologies
  • Operationalize skills taxonomies: Replace disjointed training sessions with one usable, living framework, such as the Situational Leadership® Model, to ensure training is aligned with your team’s real-world needs
  • Continuously assess and close skill gaps: Implement regular skill assessments, then tailor learning (and workforce planning) to address gaps before they start to impede your team’s performance

Bottom line: No organization can afford to fall behind nowadays. In today’s fast-changing environments, the right skills can mean the difference between leading the market and losing relevance. Skills have become the architecture of how organizations develop talent and drive organizational performance in a constantly evolving landscape. So it’s time to stop thinking of skills as static labels and start thinking of them as living components of day-to-day performance that must be constantly reassessed and refreshed.

Trend #2: AI Adoption and the Transformation of Learning

Artificial intelligence (AI) has absolutely dominated the headlines in 2025, not because it’s new per se, but because organizations have finally begun to implement it in meaningful ways. There’s still a clear divide between organizations that have fully embraced AI and those still cautiously exploring its potential, but nonetheless, the impact has been felt universally: AI is completely transforming how we work and how our people learn.

As more tasks become automated, job descriptions are actively being rewritten, fueling feelings of uncertainty, anxiety and instability among employees. At the same time, leaders are forced to navigate a growing array of complex questions about AI’s capabilities, ethics and impact that they may not necessarily have the answers to. This has only intensified the pressure leaders feel as they attempt to balance innovation with reassurance.

Actionable takeaways:

  • Stay ahead of the AI curve: Keep your finger on the pulse of emerging technologies and workplace trends, especially in relation to AI. Staying informed allows you to confidently steer strategic discussions and shape your organization’s future in a positive direction
  • Build trust through clarity: Proactively address your team’s concerns and uncertainties. Clear, transparent and empathetic communication can go a long way in helping your employees feel more secure moving forward with discussions around new technologies
  • Lead change effectively: Develop your change management skills to better support your team through any new processes or tools your organization chooses to adopt and ensure the process is purposeful and manageable for them

Bottom line: AI is here to stay, and its impact on the workplace cannot be ignored. Leaders who stay curious, prioritize their people and guide change like AI strategically and thoughtfully won’t just survive the waves of disruption. They’ll turn them into valuable opportunities for their organization, unlocking greater innovation, engagement and long-term competitive advantage.

Trend #3: Human Skills and Emotional Intelligence Are Must-Haves

Sure, AI can process data, manage schedules and streamline processes, but it can’t understand your employee’s frustration, celebrate the small wins or sense when a team member is overwhelmed. And in this day and age, it’s those unique human moments that matter most.

The more automated workplaces become, the true value of leaders lies in their Emotional Intelligence: their ability to empathize, build trust and navigate complexity with their team, together. Stress, information overload and interpersonal tension are all realities of modern work that directly affect performance, engagement and retention, but no algorithm can really address those issues. Human leaders, with real human skills, who can prioritize building authentic connections and relationships with their teams are going to become the ultimate differentiators for organizations moving forward.

Actionable takeaways:

  • Develop human skills, not just technical ones: Invest in EQi training, like our Leading With Emotional Intelligence training, to develop the skills that help your people feel seen and supported, and ready for the complex, collaborative nature of modern work
  • Make connection non-negotiable: Don’t just rely on brief check-ins or 1:1s to see how your team is doing. Set aside time to build genuine relationships with your team members. Remember, teams that feel seen and valued stay longer and work better
  • Support your team’s well-being: Be on the lookout for signs of workplace stress, anxiety or burnout, so you can address it head-on. Better yet, design workloads that protect energy just as much as they prioritize output

Bottom line: In a year of rapid change, employees need leaders who can steady the pace. But leaders can’t rely on their technical skills alone to do that. Emotional Intelligence has to be at the forefront of their approach if they hope to keep their teams happy, healthy and whole. And inevitably, it will be the organizations that develop their leaders’ emotional insight and human skills early, intentionally and consistently that will be unstoppable forces of productivity and performance moving forward.

Trend #4: Strategic Thinking Is Now Everyone’s Responsibility

Another trend that picked up steam this year is the widening role of strategic thinking. In a world where change is constant and rapid, being able to plan for the future effectively and efficiently is what separates organizations that stay ahead from those that are constantly playing catch-up.

But in 2025, the responsibility of strategic thinking has shifted. It is no longer a skill reserved for top executives or long-term planners. Instead, it is now a daily requirement spread across all roles, from frontline employees all the way up to top-level managers.

A large part of that shift comes from AI. By automating more of those routine tasks, AI has freed individual contributors to focus their time, attention and energy on doing what machines can’t: long‑term thinking, problem-solving and decision‑making. This unlocks more than just greater efficiency. This expands who gets to shape an organization’s future. With more diverse perspectives contributing to strategy and more individual efforts dedicated toward driving organizational success, companies can seize new opportunities faster, innovate more boldly and move more proactively instead of constantly reacting to change.

Actionable takeaways:

  • Empower employees to think bigger: Get your employees invested and engaged in big-picture thinking. Grant them the freedom and resources to identify opportunities where they can make a meaningful impact and contribute to the long-term success of the organization
  • Foster inclusive innovation: Put in the work to create a psychologically safe environment where people feel comfortable bringing their diverse perspectives and ideas to the table. Creating a culture of trust can make sure a wider range of voices is heard
  • Build your team’s initiative: Challenge your team to take ownership of their role in driving the organization forward. Get them invested in the company’s success and push them to anticipate organizational challenges and actively propose solutions

Bottom line: Gone are the days when strategic thinking was reserved for the C-suite. Now, strategic thinking is a core capability that every employee must practice daily. In distributing their strategic thinking like this, organizations gain crucial competitive advantages: faster innovation, greater adaptability and a workforce empowered to act with foresight. The lesson is clear: Strategic thinking is essential, and it needs to be cultivated everywhere, at every level, all the time.

Trend #5: Engagement and Trust Became Make-or-Break Metrics

More than ever before, organizations this year were hit with nonstop change, mounting workplace anxiety and eroding trust. Employees were forced to navigate layoffs, volatile job markets, geopolitical upheaval and relentless organizational shifts. Leaders wrestled to keep their teams motivated and performing amid relentless instability, disruption and uncertainty.

Amid this ongoing chaos, something deeply foundational has been shaken: the connection between people and the organizations they work for. Stress is rising, anxiety is looming and security is slowly but surely slipping away. All of this has a profound impact on trust and engagement worldwide. When employees don’t trust their organization or feel connected to their work, the way they have this past year, the results can be devastating: motivation slows, performance drops and progress halts entirely.

If 2025 has shown us anything, it’s that engagement and trust are the lifeblood of an organization. The fact of the matter is, without these two critical components, even the most talented teams will fail, and the most well-structured companies will crumble.

Actionable takeaways:

  • Lead with transparency: Setting clear expectations upfront and sharing decisions early on can allow you to build trust, even in uncertain times, and give your employees a strong sense of stability and direction
  • Invest in the human side of work: Prioritize developing genuine relationships with your team, recognizing and celebrating contributions as well as providing real, honest feedback. This can keep your team committed and empowered, sparking their motivation
  • Tie development to growth: Create learning and development opportunities that are directly tied to your employee’s growth. This shows employees you’re invested in them as individuals, and when learning feels personal and relevant, engagement spikes

Bottom line: Ultimately, engagement and trust are the glue that hold all other aspects of an organization together. Organizations need to realize that they are so much more than just morale boosters. They’re the strongest predictors of performance, retention and long-term success that an organization can have. By investing in building and maintaining both engagement and trust within their teams, organizations better position themselves to be able to navigate and thrive in even the most competitive environments.

What These Trends Signal for 2026

It’s safe to say that 2025 was a whirlwind, defined by constant change, shifting expectations and evolving ways of work. But these shifts aren’t slowing down anytime soon. In fact, they’ve actually set the stage for 2026, showing organizations exactly what they can expect and what they will need to do to stay ahead:

  • Build leaders at every level: Invest in developing skills early to drive engagement and performance while preparing employees to lead change and drive success from anywhere within the organization
  • Champion human skills: Soft skills, such as Emotional Intelligence, communication and problem-solving, will be just as important as technical skills and AI literacy, so set aside training dedicated just for developing these
  • Equip teams for ongoing change: Change is certainly not going to be slowing down any time soon, so give your team the tools, skills and strategies they need to navigate uncertainty and disruption with confidence

The trends we highlighted above will continue to play a key role in shaping how we work and what it’ll take to succeed. The need for adaptability will grow. The influence of AI will deepen. Strategic judgment will become even more critical. Human skills will continue to be the key differentiator, and trust will remain the anchor that stabilizes teams in the era of continuous change.

Looking ahead, we know that 2026 will bring both challenges and opportunities, and success will depend on how well your teams are able to navigate them together. By focusing on building adaptable, emotionally intelligent and strategically minded talent with comprehensive leadership training like ours, organizations can turn uncertainty into a strategic driver for year-long success.

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