HR INSITE: Connecting L&D with the Bottom Line

Thenuka Thushyalak (AMCIPM) , Chief Manager Human Resources, Pan Asia Banking Corporation PLC

As Chief Manager Human Resources at Pan Asia Banking Corporation PLC, my journey from frontline banking to HR leadership has shaped my conviction that Learning & Development (L&D) is a strategic lever, not just a support function. L&D, when executed with rigor and alignment, can transform organizations, drive business performance, and foster a culture of continuous improvement. Let’s delve deeply into how L&D connects to the bottom line, drawing directly from my experience and the realities of our sector.

How L&D Directly Impacts Key Business Performance Metrics

People are the true drivers of business transformation—even in a world increasingly shaped by AI, automation, and digitalization. While technology can bring efficiency, it is people who must adapt, innovate, and execute new strategies. L&D empowers this change by shaping behaviours and mindsets that drive revenue, productivity, and cost savings.

For example, we implemented a leadership development program for branch managers. Following a series of vigorous training and performance coaching, 29 out of 30 participants not only met but exceeded their profitability targets. This was achieved despite challenging market conditions and sluggish credit growth. The key was not just skills training, but a shift in mindset, accountability, and team cohesion. The result was a measurable impact on the bottom line—higher revenue, improved productivity, and a more engaged workforce.

It’s important to recognize that such results don’t stem from one-off workshops. Sustainable impact requires ongoing, structured learning that gradually shifts attitudes and habits, ultimately driving business performance through empowered people.

Measurable Improvements in Employee Performance Attributable to L&D

To truly measure L&D’s impact, programs must be tailored and outcomes tracked scientifically. The process starts with a pre-assessment—understanding where participants currently stand. For example, before our leadership program, we used performance data and 360-degree assessments to identify development opportunities.

After training, we conduct post-assessments to capture knowledge and behavioural changes. In one instance, we proactively addressed customer service challenges by studying industry-wide data, analysing 10,000 complaints and categorizing them into people, process, and product issues. We then designed targeted training for the people-related aspects, followed by on-the-job coaching and spot checks. The result - people related customer complaints were dropped to 3%. This outcome was achieved through a scientific approach—tailoring interventions, providing ongoing support, and measuring progress with tools like scorecards and action plans.

The lesson is clear: measurable improvement requires a data-driven approach, with pre- and post-assessments, ongoing reinforcement, and clear accountability for behavior change.

Aligning L&D with Organizational Goals and Strategic Business Needs

Alignment is the foundation of impactful L&D. Too often, HR and L&D teams work in silos, disconnected from business strategy. To avoid this, we start by engaging business leaders in dialogue, understanding their priorities and translating them into learning needs.

A robust Training Needs Analysis (TNA) draws from multiple sources: strategic plans, performance appraisals, customer feedback, compliance and audit reports, and direct input from managers. For example, we categorize customer complaints, analyze performance data, and review strategic initiatives to pinpoint the most critical skill gaps.

Prioritization is key; not every need must be addressed at once. We focus on the handful of interventions that will have the greatest impact on business objectives. Once identified, these priorities are mapped to KPIs—ensuring every L&D initiative is directly linked to organizational goals. This scientific, methodical approach creates a training framework that is both flexible and firmly anchored to business strategy.

L&D’s Role in Employee Retention, Engagement, and Critical Skills Development

L&D is central to both business results and employee experience. From a people manager’s perspective, I see L&D as a primary driver of retention, engagement, and critical skill development.

·       Retention: Employees stay when they see a path for growth. We use mechanisms like CPD (Continuous Professional Development) for promotions and offer international training opportunities, which not only upskill staff but also boost loyalty.

·       Engagement: Experiential learning—such as outbound programs, play shops, and “Amazing Race” style team challenges—fosters teamwork and motivation. While some activities are hard to quantify, their impact on energy and cohesion is undeniable.

·       Critical Skills: For high-stakes roles, we invest in advanced education and on-the-job learning journeys, often sending critical team members for specialized training. This ensures the organization has the skills needed for both current operations and future growth.

Every program is designed to benefit both the business and the employee—balancing organizational needs with individual aspirations. This approach builds a culture where people feel valued and motivated to contribute at their best.

Measuring and Communicating the ROI of L&D

ROI is a perennial challenge in L&D, especially in service industries like banking. While models like Kirkpatrick’s four levels are useful, the real value is in measuring behavior change and business impact—not just participant satisfaction.

·       Level 1 & 2 (Reaction and Learning): These are “cosmetic” metrics—useful but not sufficient. Positive feedback or knowledge gains don’t always translate into results.

·       Level 3 (Behavior): This is where true ROI lies. We focus on whether training leads to observable, sustained changes in workplace behavior. For example, after credit training, we track improvements in credit paper quality and reductions in errors.

·       Level 4 (Results): Measuring direct financial impact is complex, as many variables influence outcomes. We use KPIs like credit growth, NPA (non-performing advances), and customer satisfaction as proxies, but it’s rarely possible to attribute gains solely to training.

Ultimately, ROI measurement is an evolving journey. While hard numbers are challenging, especially in smaller organizations, we use a mix of quantitative data, behavior assessments, and stakeholder feedback to build a compelling case for ongoing investment in L&D.

Final Thoughts

Connecting L&D to the bottom line is both an art and a science. It’s about designing learning experiences that drive real business results—higher revenue, greater productivity, cost savings, and a more engaged workforce. When L&D is aligned with strategy, tailored to business needs, and rigorously measured, it becomes one of the most powerful tools for organizational success.