With 85% of survey participants rating learning as a “very important” or “important” problem, learning and development issues exploded from the No. 8 to the No. 3 most important talent challenge for businesses, according to new data from Bersin & Associates and Deloitte University Press.

Only 28% of the respondents to this year’s survey believe that they are “ready” or “very ready” in the area of workforce capability. As the economy improves and the market for high-skill talent tightens even further, companies are realizing they cannot simply recruit all the talent they need, but must develop it internally.

Companies that transform their learning and development organizations are not only able to accelerate skills development, but also can dramatically improve employee engagement and retention—one of the biggest challenges cited by this year’s respondents.

HR organizations face a massive digital transformation in the learning and training industry, plus new expectations by employees for on-demand learning opportunities. There’s now greater demand for a more personalized, YouTube-like digital learning experience and state-of-the-art learning management, complete with tracking and assessment capabilities.pdt-CTA