14 CHAPTER I Introduction This chapter elaborates on why the thesis were written. It consist of background of the thesis which explain the background of the company and why the company is existing. It also elaborates on the company profile that explain on what the organization the research was carried in. Furthermore main business were also written which explained on what is the main issue currently going that the thesis would like to elaborate on. And lastly the research question on what is the main question that the research would like to address in order to bring novelty and solution to the company. I.1 Background The importance of organizational learning and development is at its height considering the significant transformation of industry and labor market in recent years. Recent data from the Future of Jobs Survey highlights the unprecedented scale of transformation expected due to technological advancement as well as economic downturn, with 60% and 42% respectively of employers anticipating fundamental changes to their operations by 2030 (Forum, 2025). Meanwhile, skill gaps have emerged as the most significant barrier to business transformation, with 63% of employers identifying them as a major obstacle for the 2025-2030 period. Driven by rapid technological advancement and evolving business demands and competition, organizations are increasingly recognizing the critical importance of human capital development as a strategic imperative for sustainable business growth. This recognition is reflected in the growing emphasis on learning and development initiatives in the organization to cater the reskilling of competency at work due to changing market demand, upskilling for individuals, and the shift in assessing new recruit and promotion based on competency. The advancement of technology and the pace of change in the world require 15 skills to be renewed and refreshed in a quick manner. Data from World Economic Forum indicated that workers need to be ready that 39% of their skill sets would be outdated or need to be transformed in the period of 2025- 2030 (Forum, 2025). This highlighted the importance of continuous learning and development in adulthood. The trend is further evidenced by the increasing proportion of workers engaging in training initiatives for both reskilling and upskilling. Further trend in the learning and development world shows the increasing proportion of employees are actually enlisted in the training of reskilling and upskilling. Out of the surveyed employers by World Economic Forum, 85% of them are planning to enhance their employees to do upskilling and reskilling. From the point of view of the employees, the employee who attend the reskilling and upskilling program are focusing on their training instead of only attending the classes and 50% of them managed to complete their training program (Forum, 2025). This demonstrates a year on year increase from the previous recording, which shows how important and decisive is continuous competency development is in the lens of employer and their employees. If the scale of workforce development is represented as 100 workers, 41 will not require significant training by 2030, while 29 will need upskilling within their current roles. Additionally, 19 workers will require reskilling and redeployment within their organizations, and concerningly, 11 workers will require training but may not have access to it in the foreseeable future. This distribution underscores the critical importance of accessible and effective learning and development programs in ensuring workforce sustainability. The depiction of the representation can be seen from Figure I.1 16 Figure I. 1 Workforce Training Requirement Beside learning and development of labor, the evolution of skill assessment mechanisms reflects changing approaches to talent acquisition and development. Work experience continues to dominate as the primary assessment tool, with 81% of businesses planning to rely on it through 2025- 2030, highlighting the enduring value placed on practical, on-the-job learning. Skills assessments follow as the second most common evaluation method, expected to be used by 48% of employers, indicating a growing emphasis on direct competency evaluation. The role of university degrees, while still significant at 43%, appears to be evolving as organizations increasingly embrace skill-based hiring practices (Forum, 2025). This highly catalyzed the importance of learning and development as a way to enhance workforce competency. Psychometric testing has also gained prominence, with 34% of businesses planning to incorporate these assessments, reflecting an increased focus on evaluating behavioral traits, cognitive abilities, and cultural fit. This trend suggests a more holistic approach to talent assessment that goes beyond traditional credentials and technical skills. The near-universal adoption of 17 skills evaluation across industries, with only 4% of companies reporting no formal assessment process. This underscores the growing importance of comprehensive skills assessment in workforce development and an opportunity for Learning and Development companies to tap into the assessment industry. Differently from how old organizations view training as a waste of capital and time, currently organizations favour training investment heavily as they have presented significant Returns. The expected outcomes from training investments reveal clear organizational priorities (Forum, 2025). Enhanced productivity leads as the primary expectation 77% of respondents, followed by improved competitiveness (70%). Talent retention emerges as the third most important expected outcome, over 72% of employers identify it as a key priority. These trend shows how organization value learning and development programs. All of the findings mentioned above highlight the necessity and the significance of learning and development in organizational success. Companies that fail to invest in comprehensive learning and development programs risk falling behind in an increasingly competitive business environment. The data suggests that successful organizations will be those that can effectively identify skill gaps, implement targeted training programs, and create a culture of continuous learning, supported by appropriate funding mechanisms and assessment tools. The future of workplace learning and development clearly points toward a brighter future, where the learning and development is viewed favourably by both workers and employers. This create a great opportunity for Learning and Development Companies to tap into the promising market, including PT Sumber Belajar Berkah. 18 The dynamic nature of the learning and development industry presents both opportunities and challenges for PT Sumber Belajar Berkah as they navigate through constantly transformative periods. To maintain their competitive edge and ensure sustainable growth, the company has focused on catering the demand of the client’s needs and wants and changes constantly along its journey. The constant change and catering client’s desire may benefit PT Sumber Belajar Berkah in retaining its customer as well as creating a competitive advantage. However a prolonged state of change along its journey presented another challenge especially on how to manage change for its employee to be prepare and be committed for further transformation. I.2 Company Profile PT Sumber Belajar Berkah was established in 2006, emerging from the founder's extensive background in the service industry, leading to a firm grounded with its service quality training. This service background accumulated during her time in the banking sector provided a unique perspective on corporate training needs and shaped the company's initial focus on service excellence. The founder's vision was clear from the outset: to enhance people's capabilities through globally-acknowledged soft skills training that would meet the rigorous standards of international corporations while remaining adaptable to local business contexts. In its early years, PT Sumber Belajar Berkah concentrated primarily on serving the banking sector, leveraging the founder's deep understanding of financial services training requirements. This specialized focus proved to be a strategic advantage, as it allowed the company to develop highly targeted training modules that addressed specific challenges faced by banking professionals.