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Why Learning & Development (L&D) is a retention strategy

In countries like Australia, where skills shortages and tight labour markets continue to challenge employers, organisations are leaning into Learning & Development (L&D) as a way to both attract and keep talent.

Sanchit Sarma

16.10.2025 · 3 min read

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Why Learning & Development (L&D) is a retention strategy

Employees now expect more than a static job description. They want:

  • Clear career pathways that connect today’s role to tomorrow’s opportunities.
  • Upskilling and reskilling that prepare them for what’s next, not just what’s required today.
  • Learning experiences that feel personalised and relevant, not just another compliance checkbox.

When those expectations aren’t met, employee engagement drops. And low employee engagement almost always leads to attrition.

What we see is that salary and promotions may attract talent, but they do not guarantee retention. What truly makes employees stay is the sense that their organisation is investing in their growth, preparing them for change, and developing their skills. Without that, people inevitably start to look elsewhere.

How SAP SuccessFactors Learning delivers

SAP SuccessFactors Learningis more than a learning management system. It’s an integrated, AI-powered ecosystem designed to support retention by making development relevant and connected to business needs.

Some of the key capabilities include:

  • Skills-based, role-mapped learning journeys that link training directly to career progression and internal mobility.
  • AI-powered recommendations based on profile, performance, and aspirations — helping close skills gaps and enhance employee experience.
  • Automated assignments (compliance, mandatory, or role-based) to ensure the right people receive the right training.
  • Microlearning and bite-sized content for hybrid, frontline, and time-poor workers.
  • Analytics & insights that measure engagement and outcomes, not just course completions.
  • Integration with external providers (e.g., LinkedIn Learning, Coursera) so employees access curated internal and external content in one place.
sap-successfactors-talent-development

Real-world impact in Australia

  • Goulburn Valley Water modernised HR with SAP SuccessFactors, centralising Learning & Development to upskill a diverse workforce. By making training more accessible and structured, GVW strengthened efficiency and turned L&D into a key strategy for retaining talent in a competitive sector.
  • HenderCare unified HR operations by implementing SAP SuccessFactors via Zalaris’ PeopleHub, consolidating data from three payroll systems and automating workflows across recruiting and onboarding. This move created a single source of truth, streamlined HR & payroll efficiency, and enhanced employee experience.

These examples highlight how learning, when tied to employee growth and career pathways, drives retention and reduces turnover.

What HR Leaders in Australia can do

For HR leaders facing skills shortages and evolving workforce expectations, the formula is clear:

  • Align L&D strategy to business-critical skills gaps using analytics.
  • Make internal mobility and career pathways transparent and accessible.
  • Provide flexible formats — microlearning, mobile, and on-demand content.
  • Use AI-driven personalisation to ensure training is meaningful and engaging.
  • Track engagement, satisfaction, and internal promotions, not just completions.

Ready-to-implement options: PeopleHub

As a QPPS (SAP-Qualified Partner-Packaged Solution), PeopleHub is a preconfigured SAP SuccessFactors solution developed by a certified SAP partner. For mid-sized organisations, PeopleHub offers a faster, lower-risk way to start with modules like SuccessFactors Learning. It ensures access to modern L&D capabilities, from onboarding to skills developent, without the complexity of a full-scale custom rollout.

In today’s competitive talent market, learning is more than an HR program, it’s a core retention strategy. When employees see that their employer invests in their growth through upskilling, reskilling, and personalised development, they are far more likely to stay.

With AI-enabled personalisation and deep integration into the HR ecosystem, SAP SuccessFactors Learning transforms compliance training into a culture of growth turning attrition risk into long-term loyalty and capability.

With AI-enabled personalisation and deep integration into the HR ecosystem, SAP SuccessFactors Learning transforms compliance training into a culture of growth turning attrition risk into long-term loyalty and capability.

Ready to get started? Get in touch with us here.

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Sanchit Sarma

Sanchit Sarma

Solution Architect

Sanchit Sarma is an experienced HRIS consultant and solution architect with deep expertise in SAP SuccessFactors. Certified in Learning, Employee Central, and multiple other modules, he has delivered integrated HRIS solutions across industries and regions. Beyond implementations, Sanchit brings a strong focus on solution architecture — designing end-to-end HR and talent processes that connect learning, workforce planning, and business strategy. His work spans Australia, the UK, North America, and Asia, where he has partnered with organisations to transform Learning & Development into a strategic driver of retention, growth, and future-ready capability.