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Here ’ s a stat that should make every business leader pause : employer investment in training is at its lowest since records began in 2011 . According to Skills England ’ s inaugural report , published in September , spending on workforce training has fallen by 19 % per employee in real terms over the past decade .
This trend isn ’ t just worrying , it ’ s dangerous . In a world of rapid technological change , tightening skills gaps and evolving job markets , failing to invest in people isn ’ t a money-saving strategy ; it ’ s a shortcut to stagnation .
At Thrive , we see this as a wake-up call . Upskilling is no longer ‘ nice to have ’ or something businesses can kick down the road . It ’ s essential .
The skills crisis in black and white
The Skills England report underscores what many of us in the learning and development ( L & D ) world have been shouting about for years : businesses are falling behind , and the talent pipeline is drying up .
Think about the challenges we ’ re all navigating . Automation , Artificial Intelligence ( AI ), sustainability targets and the green economy are reshaping industries at lightning speed . Roles like data analysts , AI ethicists and climate risk officers didn ’ t exist a decade ago , yet they ’ re now critical to business success .
We ’ re not equipping people with the skills needed to thrive in these emerging roles . According to the Open University ’ s Business Barometer , 70 % of organisations say skills shortages are causing recruitment struggles , with many reporting it ’ s stifling innovation .
This is the paradox , while the future demands adaptability , businesses are cutting back on the one thing that guarantees it , training .
Why the ‘ do nothing ’ strategy will fail
If you ’ re worried about retaining your best talent , here ’ s some food for thought : LinkedIn ’ s Workplace Learning Report revealed that 94 % of employees would stay longer at a company if it invested in their career development . That ’ s almost everyone .
Failing to invest doesn ’ t just hurt your current workforce ; it impacts your ability to attract new talent too . In a recent report from Deloitte , it was found that Millennials and Gen Z workers , who make up a growing share of the job market , prioritise learning opportunities above all else when evaluating potential employers .
Businesses cannot afford not to invest in training .
Upskilling : A strategic advantage
Upskilling isn ’ t just about plugging gaps ; it ’ s about future-proofing your business for transformative technologies like AI . It ’ s the difference between struggling to adapt and seizing the opportunities change brings .
Cassie Gasson , Co-CEO , Thrive
Research consistently shows that companies investing in upskilling see far better outcomes .
Training budgets can often get slashed when economic headwinds hit . But what ’ s the cost of inaction ?
Research consistently shows that companies investing in upskilling see far better outcomes . For instance , a McKinsey study found businesses with strong L & D cultures are 1.5 times more likely to outperform competitors . Conversely , organisations that neglect training face disengaged teams , higher turnover and diminishing innovation .
Take AI as an example . While automation might replace some responsibilities , jobs requiring specialist AI skills are growing at 3.5 times the rate of others , with these professionals commanding salaries up to 25 % higher . Even in roles directly impacted by AI , job growth remains steady and productivity within these roles has skyrocketed , increasing nearly fivefold .
For businesses , this underscores the critical importance of upskilling . Those that prioritise
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