Is There a Dedicated Budget or Time Allocation for Team Members to Pursue Learning and Development Opportunities?

As leaders of growing tech-driven startups and SMEs, one of our most critical assets is our people. We all understand the need for a strong team that can not only execute our business vision but adapt to the rapidly evolving technological landscape. However, when I meet with founders and CEOs, a recurrent theme is the lack of attention given to learning and development (L&D) within the team. The immediate pressures of business operations, meeting investor expectations, and scaling quickly often overshadow this vital component of growth.

But let me ask you this: are we really serving our businesses by underfunding or under-prioritising our teams' development? Is the time crunch that comes with the constant push for more features, faster delivery, and higher returns justified if it means we neglect the intellectual growth and well-being of our employees?

In my experience working with various scaling businesses, those that make time and allocate budgets for learning and development have a distinct edge over those that do not. Here's why, and how you can start integrating this into your company without disrupting the flow of business.

Learning & Development as a Strategic Advantage

In the fast-paced world of tech startups and SMEs, agility and adaptability are more than buzzwords—they are survival tactics. Your competitors are racing to out-innovate you, and one of the ways you can keep up is by ensuring your team is constantly learning and evolving. We often think of innovation as being primarily about technology, but it's the people behind that technology who make it happen. A lack of focus on L&D can stunt your company’s growth just as much as a poor technology decision.

The Link Between Learning and Business Goals

The link between learning and development and achieving business objectives is undeniable. Companies that embed learning into their culture often find themselves better positioned to hit their strategic targets. When team members are equipped with the latest knowledge, trends, and skills, they’re more likely to innovate effectively and provide creative solutions to complex problems.

Startups without senior technology leadership often struggle with aligning their technology strategy with business goals. As highlighted in my experience as a fractional CTO, I've seen countless instances where a lack of development resources leads to costly missteps—projects that are misaligned with actual business needs, or worse, completely disconnected from the company's strategic direction​. Investing in L&D helps ensure your team understands not just the technology, but the broader business context in which they’re operating.

When a team is encouraged to learn about the latest advances in cloud computing, AI, blockchain, or data analytics, it gives them the foresight to anticipate industry shifts and keep your business on the cutting edge. Conversely, ignoring learning opportunities can make your company reactive, rather than proactive—a dangerous position in such a fast-moving market.

How to Implement Learning and Development Effectively

The implementation of an effective learning and development programme need not be disruptive. It’s about creating a balance between business needs and the personal growth of your employees. Here are some strategies that can help your team thrive:

1. Establish a Learning Budget

One of the simplest ways to ensure continuous learning is by setting aside a dedicated budget for each team member’s development. This can be used for attending conferences, enrolling in online courses, or purchasing materials relevant to their role. Allocating a percentage of your company’s revenue to L&D, even if modest, signals to your team that their growth is a priority.

But what about the argument that there’s no room in the budget for such expenses? In my view, this is a short-sighted approach. The cost of underdeveloped staff is far higher. Consider the impact of staff turnover due to lack of growth opportunities, or the cost of mistakes made by employees who aren’t up-to-date with industry standards.

2. Create Time for Learning

Learning requires more than just financial resources—it requires time. And this is where most startups struggle. With every hour accounted for in the push to meet deadlines and launch products, it can be difficult to justify setting aside time for something that doesn’t have an immediate ROI.

However, creating time for learning is essential. Encourage your team to dedicate a few hours each week to pursuing new skills, reading up on industry trends, or attending webinars. This might sound daunting in the short term, but it will pay off. Teams that are constantly learning are better equipped to handle the unexpected and find innovative solutions, reducing costly delays and mistakes.

How to Overcome Resistance

You may encounter resistance, both from within your organisation and from yourself as a leader. It can feel like an indulgence to pull people away from billable work or tight deadlines to invest in L&D. Here are a few strategies I’ve found effective in overcoming this:

1. Start Small and Scale Gradually

Rather than overhauling your schedule to accommodate massive chunks of learning time, start small. Dedicate one day a month or a couple of hours a week to team development. You’ll find that the small gains add up quickly, and as the team begins to show improvements, you can scale the initiative.

2. Tie Learning Directly to Company Objectives

To avoid the feeling that learning is ‘extra’ or a luxury, tie it directly to your company's goals. Set clear objectives that show how the time spent learning will translate to improved performance, innovation, or efficiency. For example, if your company is pushing into a new market, align learning initiatives with that goal. Equip your team with the knowledge they need to successfully navigate new regulations, technologies, or customer preferences in that market.

3. Encourage Peer-to-Peer Learning

A culture of learning doesn’t need to rely entirely on external courses or materials. Encourage knowledge sharing within your team. For instance, if one developer attends a specialised conference, they can host a lunch-and-learn to share their key takeaways with the rest of the team. This approach not only maximises the value of your learning investments but also fosters collaboration and a shared commitment to growth.

Measuring the Impact

Like any other investment, learning and development efforts should be measured to ensure that they’re delivering results. But measuring L&D can be more difficult than tracking sales or revenue. Here’s what to look for:

Skill Acquisition and Application: Track the new skills your team acquires and, more importantly, how they apply them to their work. Are they using their new knowledge to solve problems more effectively? Are they introducing new ideas or technologies that enhance your product or service?

Employee Engagement and Retention: Are employees more engaged in their work? Are they staying longer at your company? A strong L&D programme can significantly improve employee retention rates, as team members feel valued and invested in the company’s future.

Innovation and Problem-Solving: Are your teams proposing more innovative solutions or driving the development of new features? Innovation is a key indicator that your L&D efforts are paying off.

Business Performance: Ultimately, the true measure of your L&D programme’s success will be reflected in your business’s performance. Has it improved productivity? Are you entering new markets more confidently? Are you staying ahead of competitors because your team has cutting-edge skills?

The Long-Term Impact of Learning and Development

In a high-growth environment, L&D is often viewed as a ‘nice to have’ rather than a core business function. But the reality is that a lack of dedicated learning resources can lead to stagnation, demotivation, and even employee turnover. As businesses scale, maintaining alignment between growth objectives and team capabilities becomes critical. This is something I regularly stress when working with startups as a fractional CTO​.

In the long run, investing in your team's learning and development isn’t just about keeping up with the latest technologies; it’s about empowering them to drive your business forward. It’s about creating a culture of curiosity, adaptability, and resilience that enables your business to thrive, no matter how fast the world around it changes.

Your team will appreciate the investment in their growth, and it will show in their work. Teams that feel supported and challenged are more likely to stay motivated, loyal, and committed to the company's long-term vision. In short, dedicating time and resources to learning and development isn’t just about securing your company’s future success—it’s about unlocking the potential within every member of your team.

Conclusion

As you reflect on the allocation of budgets and time for your team’s learning and development, consider the long-term benefits this investment can bring. Learning and development is not a luxury—it’s a strategic necessity for any growing business. With the right budget and time allocation, you can empower your team to be more innovative, adaptive, and aligned with your company’s goals.

It's not a question of whether you can afford to invest in L&D; it's a question of whether you can afford not to.