Upskilling has become increasingly important in today’s rapidly changing job market. As new technologies emerge and skills become outdated, workers must continually gain new skills and knowledge to remain competitive. But what do the statistics say about the prevalence and impact of upskilling? Here we will explore the key upskilling statistics.
The Need for Upskilling
Several statistics demonstrate the growing need for upskilling:
- 35% of the skills required for jobs are expected to change by 2020 (World Economic Forum)
- Over 120 million workers in the US will need upskilling in the next 3 years (McKinsey)
- 94% of executives say they expect employees to pick up new skills on the job (LinkedIn)
- 80% of companies are currently experiencing skills gaps or expect them within a few years (Deloitte)
These stats make it clear that ongoing reskilling and upskilling are becoming essential for the modern workforce. As technology progresses and business needs evolve, the majority of workers will need to continually update their skillsets to keep pace.
Prevalence of Upskilling
How many workers are actually engaging in upskilling activities? Some key stats on the prevalence of upskilling include:
- 46% of people learn a new skill every year (LinkedIn)
- 50% of all employees report taking on skills training annually (Association for Talent Development)
- 67% of companies currently offer upskilling opportunities (World Economic Forum)
- 41% of companies replaced staff with new hires in 2018, indicating employees were not keeping skills up to date (McKinsey)
While a reasonable percentage of workers engage in some upskilling every year, there is room for improvement. Many employers report difficulty finding candidates with needed skills. Upskilling may need to accelerate to keep up with the pace of change.
Benefits of Upskilling
Investing time and resources into upskilling can pay off through a number of benefits:
- Over 90% of employers said upskilling improves employee retention rates (LinkedIn)
- 95% of employees say they would stay at a company longer if it invested in their career development (LinkedIn)
- Upskilled employees are 50% more likely to be high performers (Boston Consulting Group)
- Companies that offer training programs have 218% higher income per employee (Association for Talent Development)
These stats make a strong business case for upskilling. Investing in employee development leads to improved talent retention, engagement, productivity and performance. It pays off in tangible results.
Obstacles to Upskilling
While clearly beneficial, many obstacles stand in the way of upskilling for workers and employers:
- 45% of workers cite lack of time for training as a key obstacle (McKinsey)
- 17% lack access to programs for gaining new skills (Gallup)
- 43% of employers say upskilling is too expensive (World Economic Forum)
- 95% of workers are willing to upskill, but only 10% feel ready to (Coursera)
Major roadblocks include time constraints, limited access to training opportunities, cost concerns and skill gaps that make learning new skills difficult. Employers and workers must work together to overcome these obstacles.
Preferred Methods of Upskilling
How do today’s workers prefer to engage in upskilling? The most commonly used methods include:
- On-the-job training (35%)
- Informal mentoring and coaching (34%)
- Online courses (32%)
- Hands-on workshops (26%)
- Formal education programs (22%)
Classroom-based learning is dropping while self-paced online courses are rising in popularity for professional training. Short bursts of microlearning are also growing, due to time constraints faced by modern workers.
Age Differences in Upskilling
Interest in upskilling varies across different age groups:
- 18-34: 60% engaged in learning for career development
- 35-54: 54% engaged in learning
- 55+: 42% engaged in learning
Younger demographics show the most enthusiasm for upskilling. However, active learning continues through middle age and beyond. An opportunity exists to further promote upskilling across older workers.
Costs of Upskilling
How much does upskilling cost for organizations? Here are some statistics on associated costs:
- $24 billion was spent on employee training by US companies in 2018 (Association for Talent Development)
- 70% of the budget for corporate training goes toward upskilling programs (Brandon Hall Group)
- Large companies spend an average of $1,300 per employee annually on training (LinkedIn Learning)
- Small companies provide an average of 17 hours of training per employee per year (American Society for Training and Development)
Money invested in upskilling provides an excellent ROI through improved retention and performance. But costs can add up, underlining the importance of choosing training programs wisely.
Global Upskilling Trends
Upskilling is rising in importance across the globe:
- 77% of Indian companies are focused on upskilling versus recruitment (SHRM India)
- Europe spent over $17 billion on employee training in 2018 (Cedefop)
- Australia’s federal budget provides tax incentives for businesses upskilling workers ages 30-35 (The Treasury)
- APAC business spend on training grew 14% in 2018, reaching $20 billion (Training Industry)
These examples demonstrate that upskilling is a critical strategy for organizations worldwide. All regions recognize the increasing importance of upskilling as technology evolves.
The Future of Upskilling
What is the future outlook for upskilling? Here are a few forecasts:
- Global spending on training is predicted to rise to $370 billion by 2026 (SilkRoad)
- 75% of the workforce may need retraining for new skills by 2025 (McKinsey)
- Reskilling needs are expected to be a #1 workforce trend through 2022 (Deloitte)
- Ongoing skill development will be a central element of the future workplace (Economist Intelligence Unit)
The message is clear: upskilling will continue rising in importance going forward. Workers and employers alike must embrace upskilling as a lifelong endeavor, not a one-time event.
Conclusion
The statistics presented reveal that upskilling is critical for employers and workers navigating today’s rapidly changing job landscape. While most recognize the growing importance of upskilling, there are still many obstacles preventing effective skill development. Addressing these barriers through creative solutions will be key going forward. With wise investments and a culture of continuous learning, companies can upskill their workforces to drive success today and in the future.