Our 2023 Global State of Upskilling and Reskilling Report

Today, organizations are facing a significant challenge: skills gaps. It's a predicament that has permeated many corners of the professional world, impacting businesses both large and small. In our 2023 Global State of Upskilling and Reskilling Report, we delve into the heart of this topic.

The roots of the skills gap challenge run deep, and the causes are as varied as they are complex. Four major culprits stand out, each contributing to the widening gap:

1. Loss of internal skills and knowledge: As the baby boomer generation exits the workforce, they take with them decades of invaluable experience and institutional knowledge, creating chasms in corporate capabilities.
2. Higher turnover of new generations: Younger employees are more mobile, seeking new opportunities and experiences, which in turn increases the churn rate within organizations. Their departure not only disrupts the workforce but also leaves employers searching for replacements.
3. Shorter shelf-life of skills: In an alarming revelation, recent studies suggest that over the next three years, a staggering 1.4 billion people will need to reskill due to the relentless advance of artificial intelligence. Rapid technological innovation has compressed the lifespan of skills, rendering yesterday's expertise obsolete faster than ever before. 
   
   As Ross Stevenson, Chief Learning Strategist and Founder at Steal These Thoughts! explains, "AI is happening whether you like it or not. It's an opportunity for L&D teams to amplify their work and unlock opportunities with data, skills and performance. The high-performing teams of the future will be those who learn how to leverage these new tools now. Don't get left behind."
4. Demand for emerging skills outstrips supply: In an age where digital transformation reigns supreme, the demand for professionals with cutting-edge skills far surpasses the available talent pool. A disconnect exists between what organizations require and the skills individuals possess.

Our report unearths insightful data from key markets – the UK, US, France, and Germany – shedding light on these skills challenges and landscape surrounding upskilling and reskilling today. While some trends are shared, such as the struggle to find new hires with the right skills, regional disparities emerge, providing a fascinating comparative narrative.

For instance, in the UK, a staggering 62% of respondents responsible for sourcing, hiring, and retaining talent attribute the skills shortage to the challenge of finding enough new hires with the required skills and 63% also cite having a higher turnover of younger employees. 

Yet, in the US and France, the challenge of finding enough new hires with the required skills drops to 46% and 44%, respectively, suggesting a potentially less acute struggle in recruiting skilled professionals. And in Germany, even less so, with only 11% citing this as challenging.

As Simon Gibson, Group Head of Learning and Development at Marks and Spencer explains, “Most large companies are bouncing around on the “skills” debate, why is it important? In my view, if you want your company and its people to succeed, as a function you have to be in the middle of this debate working out where and when you can place bets to grow the right skills/capabilities that you may not have been doing before. No more, no less!”

So, join us as we embark on this journey to empower organizations and L&D professionals alike in the pursuit of a brighter, more skill-rich future.

Audience and methodology

The total sample size was 3,600 respondents, spread across the US (900), UK (900), France (900), and Germany (900). 

The breakdown of roles surveyed in each country was 300 people responsible for sourcing, hiring, and retaining talent (C-suite, VP, Director, and Manager level roles), 300 people responsible for training/learning and development, and 300 employees/learners working in various departments and at different levels. The fieldwork was carried out between 1st June and 16th June 2023 by Pollfish online. 

Next chapter - Upskilling Challenges: Slow Upskilling is Hindering Employee Performance