From Training to Transformation: How Skills-Based Learning Paths Drive Engagement and Retention

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In our first blog article of 2025, Director of Learning Experience Jenny Fedullo highlighted key learning and development (L&D) trends shaping impactful learning experiences. Among them is the shift from role-based training to skills-based learning models (also known as career-aligned learning) to enhance workforce agility.

Role-based training traditionally prepares employees for specific job titles with fixed responsibilities, which can create workforce readiness gaps as industries evolve. In contrast, skills-based learning focuses on workplace agility, equipping employees with competencies applicable across various roles.

The Shift from Role-Based to Career-Aligned Learning

Organizations looking to transition to skills-based learning can begin by aligning learning modules with career progression paths. Companies that directly connect employee development programs to career growth benefit from higher retention, improved job satisfaction, and greater internal mobility (Fitzhugh & Daniels, 2025). Key components of a career-aligned learning path include:

• Competency Mapping: Identifying the key skills required for each career stage
• Personalized Learning Plans: Offering targeted learning modules based on an employee’s career goals
• Blended Learning Approaches: Integrating eLearning, mentorship, on-the-job training, and certifications
• Clear Milestones & Recognition: Providing digital badges, promotions, or certifications to mark progress
• Continuous Feedback & Adjustment: Regularly refining learning paths based on employee progress and evolving business needs

For example, EPAM Systems, a software engineering company that has been a skills-based organization since inception, offers personalized learning opportunities that allow employees to bridge the gap between their current skill level and future career goals as well as peer learning programs, feedback from experts, and real business challenges tied to learning (Jeong, 2024). Beyond formal programs, much development happens informally through reflection, investigation, and conversations.

Benefits of Career-Aligned Learning Paths

Keeping employees engaged is oftentimes one of the greatest challenges in corporate learning, particularly when training does not align with employees’ long-term career aspirations. Career-aligned learning paths address this issue by connecting learner motivation with career growth, such as promotions, salary increases, and new career opportunities. Skills-based learning feels more purposeful and personalized and fosters a sense of ownership in employees when it is aligned to their career goals. A LinkedIn Learning report (2024) found that 94% of employees would stay at a company longer if it invested in their career development. When organizations align learning with career growth, they boost morale, increase engagement, and build a culture of continuous learning. 

Another key benefit is higher employee retention. When employees feel supported in their career development, they are less likely to seek job opportunities outside of their current organization. A study by McKinsey (2024) revealed that companies with structured career development initiatives experience 20–30% lower turnover rates. Given the cost of replacing an employee can be up to 200% of their annual salary, internal career development is a cost-effective strategy to retain skilled employees.

Career-aligned learning paths also increase internal leadership readiness. By prioritizing internal talent mobility, these organizations can fill more leadership roles from within, which reduces costs associated with external recruitment and creates a future-ready workforce. Procter & Gamble (P&G) exemplifies this approach by providing leadership training and development as part of its onboarding process. Their built-in career development program has led to 99% of their senior leaders being developed internally and their managers being promotion-ready in an average of 2.5 years (Procter & Gamble, n.d.).

Implementing Career-Aligned Learning Paths 

Transitioning to a skills-based learning model requires a structured approach to ensure alignment with business objectives and employee career growth. Organizations can achieve this by implementing the following steps:

Assessing Current Skills:

• Conduct a skills gap analysis to evaluate workforce competencies.
• Compare employee skills with future business needs to identify upskilling or reskilling opportunities.
• Use AI-driven assessment tools like Skills Guide or agyleOS for real-time insights. AI can analyze employee performance data to provide personalized training recommendations and suggest reskilling paths based on industry trends (SkillsWave, 2024).

Developing Skills Taxonomies:

• Create a structured framework categorizing skills by job roles and career progression.
• Align competencies with job functions to guide employee learning paths.
• Utilize skill tagging to improve engagement and knowledge retention.
• Adaptive learning platforms, powered by AI, dynamically adjust content based on individual progress and learning preferences, ensuring employees receive relevant, skill-aligned training (SkillsWave, 2024).

Designing Learning Modules:
Implement a blended learning approach, integrating:

• Online courses
• Instructor-led training
• Hands-on workshops
• Experiential learning (eLeap Software, 2024)

Structured, competency-based learning pathways help employees develop stronger workplace skills and improve retention (UK Government Skills and Curriculum Unit, 2021).

Leverage Learning Experience Platforms (LXP) to curate personalized learning journeys by gathering content from multiple sources and recommending training based on user behavior and career aspirations.

Integrating Mentorship Programs:

• AI-powered mentorship matching can connect employees with mentors based on career goals, skills gaps, and learning preferences, fostering meaningful professional relationships.
• Fostering a strong mentorship culture enhances retention and leadership development.

By using this structured approach, organizations can implement career-aligned learning paths that not only support business objectives but also empower employees to take ownership over their long-term career goals.

Measuring the Impact

To evaluate the effectiveness of career-aligned learning paths, organizations should monitor specific Key Performance Indicators (KPIs) that reflect employee engagement, retention, and performance improvements:
 

• Employee Engagement Scores: Organizations can monitor changes in engagement levels through regular employee feedback surveys. According to a guide on KPIs for training, tracking engagement can help identify areas where learners are underperforming or struggling, allowing for targeted improvements in training content and delivery (Thinking Cap, 2023).
• Retention Rates: Tracking turnover rates before and after implementing career-aligned learning paths provides insight into the impact of these programs on employee retention. A comprehensive guide on KPIs for training emphasizes the importance of measuring retention as a key indicator of training program success (G-uplearning, 2024).
• Performance Metrics: Evaluating improvements in employee performance and productivity is essential to determine the effectiveness of learning programs. Organizations should assess how training initiatives contribute to enhanced job performance, which can be measured through various performance metrics relevant to specific roles.

By systematically tracking these KPIs, organizations can optimize employee development strategies and ensure long-term workforce success.

The Bottom Line

As organizations navigate an ever-evolving skills-driven workplace, the importance of career-aligned learning paths has never been greater. Strategically aligning learning with career growth opportunities offers a more engaging and cost-effective employee development strategy than traditional role-based training models.

The workforce of the future demands more than just training. They need career roadmaps that guide their professional journeys.

How to Take Action:

• Audit your current training programs – Are they directly linked to career growth? If not, explore ways to align learning initiatives with career pathways.
• Implement skills taxonomies – Develop a structured skills framework to map training modules to career milestones within your organization.
• Foster a culture of lifelong learning – Encourage continuous reskilling and upskilling by integrating digital credentials, mentorship programs, and career coaching.
• Invest in internal mobility programs – Make it easier for employees to transition into new roles by providing clear, competency-based learning tracks.
• Measure and optimize career-aligned learning paths – Track engagement, skill progression, and promotion rates to ensure your strategy is delivering measurable impact.

By embracing career-aligned learning models, organizations can create a more motivated and skilled workforce that is not merely trained for today but prepared for the challenges and opportunities of tomorrow.

References
Fitzhugh, H., & Daniels, K. (2025). A rapid review of reviews on the nature of the relationship between learning and development and employee engagement, wellbeing, attraction and retention. UK Government. Retrieved from https://www.gov.uk/government/publications/learning-and-development-employee-engagement-and-wellbeing

G-uplearning. (2024, February 24). Key performance indicators for training: A comprehensive guide. Retrieved from https://g-uplearning.com/en/2024/02/24/key-performance-indicators-kpis-for-training-a-comprehensive-guide/

Jeong, V. (2024). Why skills-based organizations are the future. Sparkwise. Retrieved from https://sparkwise.co/magazine/why-skills-based-organizations-are-the-future

LinkedIn Learning. (2024). Workplace learning report 2024. LinkedIn Corporation.

McKinsey & Company. (2024). Tracking the talent metrics that matter. McKinsey & Company.

Procter & Gamble. (n.d.). Leadership development at P&G. P&G Careers. Retrieved February 13, 2025, from https://www.pgcareers.com/global/en/leadership-development

SkillsWave. (2024). Adopting a skills-based corporate learning strategy: Skills guide November 2024. Retrieved from https://skillswave.com/wp-content/uploads/2024/11/

Thinking Cap. (2023, November 2). Measuring success: Key performance indicators (KPIs) for training programs. Retrieved from https://compliancetraining.thinkingcap.com/blog-kpis-key-performance-indicators