How do I invest in learning and development on a tight budget?

Protect the training that builds critical future skills, and cut the rest smartly. Low-cost options include on-the-job learning, peer coaching, mentoring, stretch assignments and curated free courses. Focus spend on the two or three capabilities your skills map says matter most, especially AI skills.

Why is cutting L&D a false economy in 2026?
Because growth is a retention lever, and AI skills are lagging. In a late-2025 employee sentiment survey reported by HR Leader, 61% of Australian workers said they would consider leaving if their skills development stalled, and only 20% said they had received adequate AI training.

Employers are starting to respond, but mostly informally. NCVER's 2025 employer survey found 26.8% of employers had trained staff in AI technologies in the previous 12 months, and 80.6% of those did it through informal workplace training.

The opportunity is for organisations to build AI capability deliberately, rather than leaving people to work it out alone, will keep their best people and get more from their technology investment.

Scenario "My L&D budget has been halved, but leadership still wants an AI-ready workforce"
Ben (illustrative) is L&D Lead at a 900-person professional services firm. His external training budget has been cut by 50%, yet the executive team has rolled out AI tools across the business and expects productivity gains by year end.

Ben can't buy his way out. Instead, he identifies 30 internal "AI champions" who are already using the tools well, gives them time to run short practical sessions for their teams, and redirects his remaining budget to one accredited program for the managers who will redesign workflows. Cost is low, uptake is high, and learning sits close to the work.

What are the most cost-effective ways to develop people?

1. Learn on the job. Stretch assignments, job rotations and acting roles build capability without a course fee.

2. Use internal experts. Peer-led lunch-and-learns and internal champions spread practical knowledge quickly.

3. Formalise mentoring. Pair people across functions and levels, including reverse mentoring on digital and AI skills.

4. Curate free and low-cost content. Universities, industry bodies and learning platforms offer quality free courses. Curate them into clear pathways rather than sending a list of links.

5. Target paid training precisely. Spend on the few capabilities your skills map says are critical, and on people with the most leverage, such as managers.

6. Use government-supported training. Explore subsidised VET, TAFE and apprenticeship support where it fits your roles.

7. Measure outcomes, not completions. Track internal fill rates, productivity and retention for people who complete programs.

Where does Harrier fit?
L&D is the "build" side of the build, buy or borrow equation. Harrier helps clients decide which capabilities to build internally and which to buy or borrow, using market intelligence on where external talent is scarce or expensive.

We also track internal mobility as a core KPI in our RPO partnerships, so development investment shows up where it counts: roles filled from within, faster and at lower cost.

"As a result of the RPO, a significant amount has been achieved and the talent function has evolved to be one of the most critical components to the success of KinCare's people strategy." 

FAQs
How much should I spend on L&D? There's no single benchmark. Start from the skills your strategy depends on and the cost of buying those skills externally; development is usually cheaper for long-term needs.

How do I train staff on AI with no budget? Identify internal champions, give them time to teach practical use cases, and pair this with clear guidelines on responsible use.

Does L&D really improve retention? Yes. Australian workers consistently cite stalled development as a reason to leave.

Series links: Build, buy or borrow · Article 4: Skills mapping · Article 6: Talent technology · Download the white paper