Technological advancements, market transformations, and labor shortages are all contributing to a daunting challenge for employers. Businesses are increasingly faced with significant skill gaps in their existing workforce and are often struggling to attract the exact talent they need.

As business needs evolve quickly, workers may find it difficult to keep up, even if they’re interested in career advancement opportunities. Employees may not know which skills or positions their organizations are most desperate to fill or which skills could help their career growth.

Employers that can accurately assess their current and future skill needs and facilitate upskilling within their existing workforce will be at a stark advantage in the coming years, gaining the ability to close critical skill gaps and retain experienced talent for longer.

Why in-demand skills are changing

Across industries, organizations are struggling to attract skilled talent. When they do, they may still find that technological changes or organizational growth are still resulting in large skill gaps.

A 2024 SHRM study found that 25% of organizations said full-time positions they’d hired for in the last 12 months required new skill development, and three out of four said it was somewhat or very difficult to find qualified individuals with the new skills they needed.

Both technology and organizational growth can drive rapid change and are the two most common reasons that an employer’s skill needs may shift quickly. As organizations grow, for example, they may need to offer new services or create dedicated, scalable processes using new tools. With technology changing at lightning-fast speeds, it can be difficult for workers to keep up. 

AI adoption is driving some of the changes. A recent study in the EU found that 86% of employers believed their organizations would be driven by AI by 2028, with 80% intending to use GenAI tools over the next five-year period.

This is an enormous skill shortage waiting to happen, with the World Economic Forum estimating that workers can expect that 39% of their existing skill sets will be transformed or become outdated between 2025-2030.

Despite this, workers aren’t getting the AI training they need. Our 2024 Education Index found that 65% of workers hadn’t received AI training from their employer despite 42% wanting that instruction.

There’s clear data showing that many workers are interested in career advancement (including learning new technology), which makes upskilling your existing workforce the clear solution.

How to leverage upskilling to facilitate critical skill development

Organizations offering education assistance benefits and in-house training can reskill their existing workforce and create highly valued opportunities for employee career advancement.

To successfully encourage upskilling, it’s important to consider your potential skill shortages, employees most motivated to participate, and how to offer programs that are likely to drive employee adoption.

1. Assess current skill shortages and future skill needs

Consider your current workforce and your employees’ current capabilities, and assess them against the impact of technological advancements, market trends, and organizational growth goals. This can help you evaluate both immediate skill shortages and those that could potentially stall growth over the next five-year period.

Consult with HR managers and team leaders to discuss long-term business objectives and what talent and skills you’ll need to adapt to new processes or technology. It’s also important to consider current labor trends in your assessment.

2. Identify employees interested in reskilling

Some employees will be more interested than others in undergoing reskilling and upskilling, and it’s a good idea to consider which worker segments will be most motivated.

It’s important not to overlook frontline workers, which often include hourly workers working in roles like retail or housekeeping. A McKinsey study found that 70% of frontline workers had applied to career advancement opportunities with their current or previous employers. These workers are often highly motivated but need assistance overcoming the barriers they face to professional growth.

In the healthcare industry, for example, highly skilled medical workers were the top two most difficult positions to fill in 2024. Multiple factors are contributing to a shortage of respiratory therapists, laboratory technicians, and physical therapists. By offering upskilling opportunities for frontline workers to pursue these career paths, you can create the trained talent that you need from your existing workforce. 

3. Create intentional upskilling and reskilling opportunities

Once you’ve determined which skills you want to prioritize and which employees are most likely to participate, you can create strategic upskilling and reskilling opportunities that are likely to increase program participation.

In many cases, these opportunities will revolve around formal employee education benefits that include tuition assistance. Since cost is a significant barrier to access for workers wanting to upskill, it can be a critical factor in whether your team can get the additional education and training they need.

In addition to tuition assistance, it’s often a good idea to leverage the following to increase participation:

• Internal marketing materials that alert all team members about education assistance benefits and how to enroll.
• Campaigns targeted to frontline workers that showcase potential career advancement opportunities.
• Dedicated career pathways for roles and skills you want to prioritize, which provide clear steps workers can follow to become qualified for specific positions.
• Financial, academic, and education coaching, which is particularly important to help frontline workers with everything from choosing a good program to determining which career path they’d be best suited for.
• Management training that encourages supervisors to discuss potential career advancement opportunities with team members and to refer them to your education assistance resources for more information.

Closing skill gaps in your workforce with reskilling opportunities

Businesses across all industries are experiencing significant transformation that requires new skill development. It’s essential to remember that it can take several months to several years for workers to develop new skills or obtain the necessary certifications for career advancement, so the best time to start is now.

By taking action to create strategic career pathways that include all workers— including frontline employees— in your organizational growth goals, you’ll be able to effectively reskill existing team members. This will allow you to build the talent you need so you aren’t struggling to recruit skilled workers down the line, and it can help you retain top performers in the process.

Learn more about bridging the disconnect of employee upskilling with continued education.