Why workplace learning isn’t landing in your small business - and how to fix it

Picture the scene: you’ve ticked the box - the annual compulsory training module’s done and dusted, by you and the team (after some gentle nagging). 

But weeks later, someone is still asking questions about a basic policy - or worse, a manager makes a decision that sparks a grievance.

Sound familiar?

In small businesses, learning often gets pushed down the list. And it’s understandable: it feels like there are more urgent things to do. But legal expectations are rising, and the cost of getting learning wrong is climbing, too.

When it’s approached intentionally, learning can strengthen compliance, build capability and boost your workplace culture – all without the need for extra headcount. 

And with 70% of employees saying they’d leave for a company that’s more committed to employee development and training, being an employer that prioritises learning pays back when it comes to retaining staff too. 

Let’s unpack why learning might not be landing in your organisation - and what to do about it.

Why workplace learning often misses the mark in small businesses 

Small businesses are under pressure. You're being asked to do more with less. But today, learning isn’t a nice-to-have. It’s a business essential.

Here’s what’s standing in the way:

1. The skills landscape is changing fast

AI, automation, and hybrid work have transformed what capability and skills look like in the workplace. 

On the one hand, AI platforms have made it easier for employees to acquire knowledge quickly – both inside and outside work. That means dusting that training module off the shelf for new starters won’t cut it any more.

That said, as AI gets better at doing the grunt work, many businesses are discovering that their people’s existing skills no longer match changing company goals.

In 2024, nearly a third (27%) of all UK job vacancies were classified as skills-shortage vacancies – roles employers struggled to fill because applicants lacked required skills. 

2. Engagement and retention are under pressure

People want to grow. They expect purpose, progression, and a real investment in their development – whatever the company size. 

And, strong learning opportunities are often the difference between someone staying or going. 85% of employees at the UK’s top workplaces for development say they want to stay “for a long time”, compared to only 61% across the UK average.

Beyond retention, learning fuels engagement and motivation. 

Learning and development is strongly linked with employee engagement, wellbeing, attraction, and retention – meaning organisations that ignore it are potentially harming their own people strategy.

Without it, you risk losing good people - those who see a lack of growth or absence of purpose as reasons to walk.

3. Compliance expectations are evolving

Employment law is shifting quickly: from AI ethics and hybrid-work policies to DEI obligations and stricter data handling rules. 

Ticking a box on a generic e-learning course no longer guarantees safety. Indeed, when training fails to “stick,” the risk of compliance mistakes goes up sharply – and the penalties can be steep. 

It’s worth repeating that under UK GDPR, organisations can be fined up to £17.5 million or 4% of global turnover for serious misses.

Meanwhile, the regulatory landscape around AI in employment is evolving fast. 

A proposed bill would put the focus on employers to show that AI systems used in hiring, performance and termination decisions don’t discriminate. 

In this context, one-off training won’t cut it. If your people don’t live by the principles like bias awareness and data privacy in their day-to-day work, you can be opening yourself up to more legal risk than you need.

So what’s the fix?

3 pillars are essential to your workplace learning approach - and if you’re not hitting the mark on all three, you not only expose yourself to risk, but also miss out on the opportunities, too. 

Introducing the 3Cs of workplace learning - and why they matter  

• Compliance

• Culture

• Capability
  

The first C: Compliance 

Compliance keeps your business safe. But that doesn’t mean the training has to be safe, too. If training is rushed, confusing or quickly forgotten, it simply won’t do its job.

Common pitfalls:

• One-off, dull training that doesn’t stick or get refreshed.

• Managers unsure of their responsibilities or unsure how to act.

• Policies tucked away in handbooks, never actively surfaced in day-to-day work.
  

A better way to do things:

• Bake compliance understanding into everything from your onboarding to team meetings, so that it becomes second nature rather than an annual afterthought.

• Use short, real-world scenarios instead of long slide decks (so people see how an issue might actually come up).

• Train managers in detail, so they can spot issues early, guide the team, and know when things escalate.
  

Because compliance is no longer a “set it and forget it” checkbox. Whether it’s AI oversight, data handling, DEI, hybrid work, or legal updates, rules keep changing. But there are easy ways to keep up. 

Our Employment Law Hub is already flagging that employers will need more proactive training and regular audits going forward.

And when training actually sticks? You’ve got evidence of a strong, repeatable learning system - for example, through Breathe Learn’s tracking and reporting - rather than hoping no one ever stumbles.

Quick win: Swap out long-winded courses for short, scenario-based learning that builds real understanding.

The second C: Culture

Even the best content won’t land if your culture doesn’t support learning. If people don’t feel safe to ask questions, share ideas or admit gaps, learning stops before it starts.

When training feels one-off or top-down, people tune out. According to our research, poor company culture costs the UK economy an estimated £23.6 billion every year - a reminder that culture isn’t soft stuff; it’s business-critical.

Common signs your culture needs work:

• Training is one-off or dictated from the top.

• People aren’t applying what they’ve learned.

• Feedback is rare or ignored.

What good looks like:

• Teams talk about learning regularly – as frequently as the numbers. 

• Learning is connected to inclusion and wellbeing – you’re not only tailoring to different learning styles, but you’re also celebrating them. 

• Peer-to-peer learning is encouraged and celebrated – employees are excited to share their skills, and respect each other’s niches. 

80% of employees say better access to learning opportunities would boost their engagement.

That means creating psychological safety, encouraging peer-to-peer learning, and linking growth to wellbeing and inclusion. The CIPD echoes this in its Learning at Work Report 2023, which found that learning culture – not budget – is the single biggest predictor of whether training has impact.

Try this: Add a “What did we learn this week?” question to your team meetings. Normalising curiosity builds a culture where learning happens every day, not just in the classroom.

The third C: Capability

The world of work is moving fast. If your team’s skills don’t move with it, performance will plateau.

Building skills can’t just be about the learning itself – it’s about connection. When employees see how learning links to their goals, they’re far more likely to apply it.

The UK government’s 2024 review of learning and development found that continuous upskilling is directly linked to engagement, wellbeing and retention. Despite this, only a small number of employers have a clear plan for capability building. 

Common gaps:

• Skills aren’t mapped to business goals.

• Training isn’t accessible, flexible or relevant.

• Development isn’t discussed in one-to-ones or reviews.

What better looks like:

• Skills audits linked to strategic goals – identifying the right areas to upskill could help you get to that growth or profit goal faster.

• Micro-learning that fits around busy schedules – it doesn’t need to be chunky courses and in-person sessions. Regular, bitesize skill-sharing is hugely effective.

• Learning is tied to career growth and performance – make sure that every time you’re having performance discussions, part of the chat is around upskilling. 

Practical idea: In your next one-to-one, ask not just what someone learned – but how they’re applying it. Turning learning into action keeps skills fresh and business goals on track.

Find out where you stand: Take the Breathe Workplace Training Health Check

Not sure how your business stacks up in terms of learning? Our Workplace Training Calculator is a great place to start.

Answer six quick questions and understand your next steps.

5 steps you can take this month to start to get more value from workplace learning 

You don’t need to overhaul everything at once. Here are a few ideas to get started:

• Map what’s already happening: What’s working, what’s missing?

• Bring leaders in: Their buy-in helps learning stick

• Make it visible: Short, relevant learning that’s easy to access

• Track what matters: Focus on change, not just completions

• Try one thing: A peer learning session, a short workshop, a learning check-in

Discover Breathe Learn

Need a simple, budget-friendly way to make training land?

Breathe Learn gives you ready-to-go, scenario-based training for small businesses. It’s designed to support the three Cs - and make learning easier for everyone.

Explore Breathe Learn today.