Support Employee Development in Tough Times
Money is tight for most companies today. When you consider tariffs, health care costs, and the rising cost of commodities, many businesses are under pressure just to stay afloat.
Employees are in a bind as well. Some are merely existing in roles that no longer serve them, or their needs have shifted with the times. People’s lives aren’t stagnant, so they may need to alter their work schedules, earn more pay, or adapt to family changes.
For many companies, when the going gets tough, employee development is the first line item to go. Here’s some data:
- U.S. companies reduced their total training expenditure by 3.7% in 2024. Even more telling, 14% of organizations reported cuts in their training budget compared with 11% the previous year, with most citing economic uncertainty as the driver.
Most of us are either watching or experiencing firsthand how these realities play out in the workforce.
Increasingly, young mothers are leaving their jobs to stay home, often because rigid return-to-office directives leave them without workable child care options. The Washington Post recently reported that the share of working mothers ages 25 to 44 with young children has fallen by almost 3 percentage points during the first half of 2025. That’s the statistic that emerged after a former principal economist at the Census Bureau analyzed federal data.
On the other end of the spectrum, employees who would normally be pursuing new opportunities are holding tight to their current roles, afraid to take a leap in this uncertain economy. The common thread: People are making decisions rooted in fear or survival instinct.
So it may sound crazy for me to suggest that companies spend time and money on employee development. But that is exactly what I am about to suggest.
Here’s why. In difficult times, employees are watching closely to see how their employer responds. Do leaders retreat into scarcity thinking and cut everything that looks “nonessential”? Or do they double down on their people, signaling that talent is the one investment they will always protect?
That choice has everything to do with who stays, who leaves, and who grows with you as the storms come and go.
Here is what many organizations miss: Development isn’t a perk. It’s a competitive edge.
So what should employers be doing right now?
1. Identify and support your critical talent.
Not every role carries the same weight for future success. Take the time to understand what your most critical roles are—those roles that, if open or staffed poorly, create business chaos. In addition, understand who your top talent is—today and in the future. Then, be deliberate in who goes into those critical roles and how you develop and support those identified as top talent. It doesn’t always mean expensive programs. Sometimes it’s mentorship, stretch projects, or exposure to senior leaders. What matters is that your best people feel seen and valued and that you’re recognizing them in the ways that matter most to them.
2. Be creative with recognition and growth.
Development doesn’t always require big budgets. Celebrating wins, offering cross-training, or giving people opportunities to take on new challenges can go a long way. Employees want progress, feedback, transparency, and visibility. Recognition and growth matter more in lean times because they prove you’re still invested.
3. Be transparent and create a path forward.
People are already nervous about the economy. Don’t add to their stress with silence or vague promises. Do not be afraid to let top performers know they are, in fact, top performers and you are investing in them; do not assume that they know. I cannot tell you how many times I have coached a high-potential leader who only found out they were considered top talent after they announced their resignation. Share what you can, be honest about challenges, and lay out clear paths for the talent you want to retain. Transparency builds trust—and trust keeps people from quietly polishing their résumés.
The reality is this: Employees always have choices. Even in a shaky economy, people will leave roles that feel stagnant, unsupported, or unsustainable. If you think development is expensive, try calculating the cost of losing your most critical talent. Cutting development may save a few dollars today, but it risks your best people tomorrow.
