The Future of Learning & Development

The Future of Learning & Development

Business simulations as drivers of modern employee development

The world of work is changing rapidly. New technologies, hybrid work models, a shortage of skilled workers, and global competition are challenging companies and employees alike. For HR, this means that Learning & Development (L&D) is no longer a “nice-to-have”. It’s a critical success factor.

The latest Lünendonk study “The Market for Professional Training in Germany” shows that the market is growing continuously, even by double digits in 2023. Digital offerings are particularly in demand. Online and hybrid formats have become the standard in many organizations.

For HR professionals, this means that professional development is no longer just a benefit, but a strategic investment in a company’s future viability. Those who rely on innovative learning methods today not only secure motivated employees but also strengthen their company’s competitiveness. But the question remains: which methods truly prepare employees for the future?

Traditional seminars or pure e-learning formats often reach their limits. They lack flexibility, are difficult to scale, and have the disadvantage that knowledge is often quickly forgotten. Employees, on the other hand, want learning opportunities that are practical, interactive, and engaging.

Business Simulation: Learning by Doing, Not Just Listening

Business simulations meet exactly this need. Participants take on the role of a management team, run a virtual company, and make decisions in a dynamic market environment. Every decision has consequences that become visible immediately. This creates a learning process that is not abstract but deeply rooted in personal experience.

This principle has been convincingly confirmed by science. In a meta-analysis back in 2011, Traci Sitzmann showed that participants in computer-based simulations acquire more knowledge, retain it longer, and feel significantly more competent than those in traditional learning formats. Simulations not only strengthen technical skills but also have a strong effect on self-confidence what is an essential foundation for employees to take on new tasks, make decisions, and assume responsibility. Simulations are particularly effective when combined with feedback and reflection phases. In other words, when participants don’t just play, but also reflect.

More recent studies go even further: a review by Faisal et al. (2022) shows that business simulations promote not only knowledge but also critical thinking, problem-solving skills, and teamwork which are key competencies needed every day in corporate life. Specific studies on the use of business simulations, such as those by Huang et al. (2022/2023), also reveal which skills benefit most: research in teaching and training contexts shows improvements in strategic thinking, decision-making, teamwork, and higher-order cognitive skills. Participants particularly value the opportunity to practice “trial and error” in a risk-free environment. Immersed in the game and through team interaction, they are more motivated, engaged, and reflective. They don’t just expand their knowledge, they learn how to think and act entrepreneurially.

A recent preprint study (Martins & Sequeira, 2025) also concludes that participants in digital business simulations become more decisive, collaborative, and confident leaders. The conclusion is clear: well-designed digital business simulations are not just a welcome change of pace but a highly effective learning method.

A Win for HR: More Impact, More Motivation, More Flexibility

For HR professionals, business simulations are a true strategic tool:

• Measurable impact: Skills such as strategic thinking, leadership, and decision-making are demonstrably strengthened. Studies show that learners act with greater confidence even in their day-to-day work.
• Motivation and engagement: Business simulations are playful, competitive, and fun. They increase willingness to learn and positively influence motivation and identification with the company.
• Flexibility and scalability: Digital business simulations can be implemented across sites and countries. Research conducted during the pandemic even found that online simulations were at least as effective as in-person formats – in some cases, even better.

The effects are strongest when business simulations are embedded in a holistic learning concept. Debriefings, feedback sessions, and supporting materials ensure that learning experiences are reflected upon and transferred into daily work life. This is what differentiates a one-time event from sustainable skills development.

MARGA: A holistic approach

What does this look like in practice? Digital business simulations are most effective when not used in isolation but supported by complementary learning activities. One example is the MARGA Business Simulation. Here, teams take over the management of a virtual company and deal with strategy, finance, marketing, and production. But the concept goes far beyond just playing a game. It’s about a structured, guided learning experience. In a safe environment, participants learn to make decisions under pressure, take responsibility, and work successfully as a team. They are supported through:

• Individual tutoring: Each team is guided by experienced trainers throughout the entire training. They provide support, answer questions, and stimulate reflection.
• Interactive webinars: Regular sessions offer theoretical input on relevant management topics. Participants can directly apply these insights within the simulation.
• Continuous feedback: Both the simulation itself (through financial data, market reactions, and competition results) and the trainers provide detailed feedback. Participants not only see whether a decision was successful but also why.
• Supporting learning materials: Learning videos and the online course “Financial Basics” provide additional content that can be accessed anytime, self-paced.
• Competitive spirit: Teams compete in a realistic market environment. This gamified element boosts motivation, deepens learning, and creates a high level of engagement.