The skills gap is growing—and it’s a big problem
Technology is moving fast—faster than most companies can keep up with. The problem? Employee skills aren’t evolving at the same speed. Businesses invest in training, but it’s not enough. Employees see it. They feel it. And they’re worried.
According to TalentLMS, 69% of employees say training programs need to move faster to keep up with industry changes. That’s no small concern and is a signal that businesses are falling behind. If your workforce doesn’t have the right skills, your company is slowly sinking.
The idea that skills expire isn’t new. What’s different now is the pace. AI, automation, and digital transformation are already here. If employees don’t get the right training at the right time, they’ll struggle. And when they struggle, your company struggles.
Your training programs are boring (and employees know it)
Most corporate training is awful. It’s outdated, passive, and disconnected from how people actually learn. Employees know it, and the data proves it.
Over half (58%) of employees admit they multitask during training sessions. The younger your workforce, the worse it gets—67% of Millennials and 63% of Gen Z are zoning out. And that’s if they even remember the material at all. Nearly one-third of employees forget what they’ve learned soon after training.
Why? Because bad training doesn’t stick. Lectures and static presentations don’t engage people. They tune out. They get distracted. And when training feels like a box to check instead of something valuable, it’s ignored.
This is a fundamental business risk. If employees aren’t retaining critical skills, they’re not improving. If they’re not improving, your company isn’t either. The fix? Training needs to be engaging, interactive, and built for the way people actually consume information today.
Employees want control over their learning
People learn best when they have control over the process. That’s why outdated, one-size-fits-all training models don’t work. Employees want flexibility. They want training that adapts to their pace, their style, and their schedule.
The numbers back it up. When asked what kind of training they prefer, 53% of employees chose multimedia-based learning. Another 49% preferred self-paced courses. That’s a clear signal that employees want dynamic, engaging experiences, not rigid, classroom-style instruction.
This makes sense. Today’s workforce is used to learning on demand. They watch YouTube tutorials, take online courses, and seek out information when they need it. Corporate training should reflect this reality. The companies that get this right will have a workforce that adapts quickly.
Budget limits are slowing down growth
Even when employees want more training, they don’t always ask for it. Why? Budget concerns.
About 23% of employees hesitate to request additional training because of perceived financial constraints. This is due to company priorities. Employees assume there’s no budget for more training, so they don’t push for it.
That’s a problem. Training is an investment. A well-trained workforce is more efficient, more innovative, and better equipped to handle rapid change. When companies cut corners on training, they aren’t saving money. They’re losing competitive advantage.
AI, automation, and digital disruption aren’t waiting. Neither should your company. If budgets are tight, reallocate. Make training a priority.
AI is moving fast and training isn’t keeping up
AI is already transforming industries. But the problem is that employees don’t know how to use it effectively, and companies aren’t training them fast enough.
According to TalentLMS, 49% of employees say AI is advancing faster than their company’s ability to train them. That’s a huge gap. It means people are expected to work with AI tools but lack the skills to do it properly. Worse, more than half (54%) say they don’t have clear guidelines on how to use AI at work. And a significant 65% want training on how to use AI safely and ethically.
If employees don’t understand AI, they won’t use it correctly. If they don’t use it correctly, it creates risk—bad decisions, security vulnerabilities, and ethical issues. The companies that invest in AI training now will have employees who use these tools strategically. The ones that don’t will face mistakes, inefficiencies, and potential legal trouble.
“AI is amplifying human abilities, not replacing them—but only if they know how to use it. The smartest companies will train their people to master it.”
Employees want more than just AI training
AI is a priority, but it’s not the only thing employees want to learn. The demand for training goes beyond technology. Leadership, soft skills, and digital skills are just as critical.
Why? Because the workplace is evolving. Automation is taking over routine tasks, but human skills—like leadership, communication, and problem-solving—are more important than ever. Employees know this. They’re asking for leadership and management training. They want to improve their ability to collaborate, negotiate, and adapt.
Digital skills are also in high demand. Companies assume employees are already digitally fluent, but that’s not always true. From navigating new software to understanding cybersecurity risks, employees need structured learning to stay competent in an increasingly digital world.
Smart companies will provide well-rounded training programs—ones that go beyond technical skills. Because in the future, the most valuable employees know AI, how to lead, think critically, and work effectively in a world where technology is everywhere.
Companies that ignore training will lose talent
If employees don’t see a future for themselves at your company, they’ll look elsewhere. And right now, a lot of them are thinking about leaving.
TalentLMS reports that 37% of Gen Z employees are considering changing jobs by 2025 if their training needs aren’t met. That’s a massive red flag. Younger employees are looking for growth, not just a paycheck. If they don’t see opportunities to learn and advance, they’ll move on.
Retention isn’t defined perks and paychecks. It’s about giving employees a reason to stay. Training is an investment in people. When companies commit to upskilling, employees feel valued. They stay longer. They work harder. They innovate more.
Key executive takeaways
- Urgent need for rapid upskilling: Rapid technological advances are rendering current skills obsolete as training programs lag behind. Leaders should invest in agile, personalized learning solutions to keep workforce skills current and competitive.
- Ineffective training formats hinder engagement: High rates of multitasking during training sessions indicate that traditional formats are failing to engage employees. Decision-makers must redesign training to be interactive and self-paced, ensuring that key information is retained and applied.
- Critical demand for AI and digital skills: With nearly half of employees feeling that AI advances outpace their training, there is a clear need for comprehensive education in AI and digital technologies. Executives should prioritize structured programs that include safe and ethical guidelines for AI use to harness its full potential.
- Talent retention tied to development opportunities: A significant portion of younger workers are considering leaving if their training needs remain unmet, posing a risk to talent retention. Leaders must view upskilling as a strategic investment to secure a resilient workforce and sustain competitive advantage.
