Only a quarter of workers feel equipped for career growth, report finds
One quarter (24 per cent) of workers globally feel confident they possess the skills needed to progress in their careers, a report has found.
The People at Work 2025 report by ADP, which surveyed almost 38,000 workers, found just 3.8 per cent of respondents had developed new skills on the job within the past two years.
Among those who felt strongly that their employers were investing in their skills development, more than half (54 per cent) had received a recent promotion, whereas, for workers who felt let down by their employers’ upskilling opportunities, only 34 per cent had recently been promoted.
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Nela Richardson, chief economist at ADP, said that a “skilled workforce is more loyal to employers” as well as being more productive.
“If companies want to benefit from the enormous technological advancement to come, they must start with investing in the skills and career progression of their workers,” she added.
Samantha Mullins, director at Latitude HR, pointed out that the impact of a lack of investment into skills has led to “significant skills shortages across the board” and “burnout from those who are expected to cover the gaps from a workforce that feels undervalued”.
The knowledge worker advantage
The report divided workers into knowledge workers, who had freedom and creativity to create something new; skilled task workers, who use a level of expertise to solve similar problems each day; and cycle workers, who do similar repetitive tasks each day.
Only 15 per cent of cycle workers felt they had the skills to advance in their career in the next three years, and 8 per cent felt their employer invested in them.
Among skilled task workers, 21 per cent felt they had the necessary skills for advancement, while 14 per cent felt their employer invested in their skills development.
For knowledge workers the percentage that felt they had the skills to advance jumped to 30 per cent, and 26 per cent felt their employer invested in the development of their skills.
Boosting productivity and retention
Workers who strongly agreed that their employer provided the training they needed were three times more likely to describe themselves as highly productive. They were also six times more likely than others to recommend their employer as a great place to work.
Businesses that invested in skills development saw improved retention rates. For knowledge workers, nearly two thirds (62 per cent) of those who received knowledge training had no intention of leaving, compared to half (50 per cent) who had not received any training.
For skilled task workers who had investment into their skills 61 per cent did not plan to quit, compared to 38 per cent of those who had no investment into their skills.
Similar patterns emerged for cycle workers, with 61 per cent of those who had investment from employers not likely to quit, compared to a third (34 per cent) of those who did not have investment in their skills from an employer.
Lorraine Mills, principal consultant at Right Management, said organisations often “underinvest in raising an individual’s self awareness of their own strengths and development needs”.
“Neglecting to develop individual skills leads to a lack of competitiveness, lower productivity and poor employee engagement and innovation,” she explained.
Learning and development a ‘key priority’
Mills said organisations that prioritised learning and development reported “significant reductions in their staff turnover – by almost a third”. She highlighted the importance of this as the cost to replace someone is often several multiples of their salary.
Mullins added that learning and development should be a “key priority” for companies. “A structured approach to development, with a clear understanding of how employees can access it, aligned to the future workforce needs, supports recruitment and retention,” she said.
“Companies that invest wisely in learning and development are likely to improve performance, productivity and motivation across their workforce while closing skills gaps and maintaining competitive advantage.”
Fiyinfolu Ojambati, learning and development business partner at ITP Aero, said failing to develop employee skills had “many long-term negative impacts”, including putting organisations at a competitive disadvantage, as they are “unable to adapt to fast-paced technological advancements and industry changes”.
“Lack of inclusive development opportunities could also affect employee engagement, as well as increase turnover rate and recruitment costs,” she added.
The age factor
Workers aged 55 to 64 were the least likely to feel they had the skills to advance, with only 15 per cent strongly agreeing. Only 11 per cent of this group felt their employer invested in their skills.
Close behind were those aged 40 to 54, with 22 per cent feeling they had the skills to advance and 15 per cent feeling their employer invested in their skills.
Mills said the “drop off” in the data as the age profile shifts to older workers seemed to indicate that “organisations are clearer in identifying and addressing skills needs for their younger employees” than for workers further in their careers.
“Providing support for continuous growth at all career stages requires a sustained approach to identifying and developing employees and their skills. This includes clarifying promotion criteria and providing a wide range of feedback and development opportunities,” she added.
The skills gender gap
The report found men were more likely than women to feel they have the skills to advance their career.
In the European cohort, 18 per cent of men felt they had the skills to advance their career, compared to 16 per cent of women, and 13 per cent of men felt their employer invested in their skills, compared to 11 per cent of women.
The gender skills gap was more pronounced among cycle workers globally, as just 13 per cent of female cycle workers believed they had the skills to equip them for advancement, compared to 18 per cent of men.
“While it is challenging to provide a comprehensive outlook on women’s statistics because of limited data, it is well documented that women are more likely to experience imposter syndrome and lack confidence – factors that likely contribute to these trends,” Mills explained.
Ojambati said: “Although there is a small margin between how men and women perceive their readiness for career advancement, the report highlights the gender disparities and inequities in the support and opportunities available to women in the workplace.”
Next steps for employers
Ojambati said employees were “increasingly seeking employers that invest in their growth”, and a “focus on learning and development allows organisations to retain top talent, improve productivity and remain competitive”.
Mills said companies that invest in development programmes increased their revenues by as much as a quarter (24 per cent) per employee, according to the L&D Benchmark Report 2024.
“Those that do encourage a growth mindset – believing that they can improve through learning, curiosity and self awareness – will push their capabilities and develop new skills,” she added.
“In the long term, this helps to not only progress individual career pathways, it fosters a more productive organisation. The relationship is symbiotic; organisations that value their people based on whether they are keen to develop and grow will drive innovation and are 30 per cent more likely to be a market leader according to the same research.”
For further information, read the CIPD’s bitesize research on six steps to upskilling your workforce
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