Skills confidence gap: workers dissatisfied with employer's investment in career development

10 October, 2024

53% lack confidence that their employer is investing in their skills development
42% think AI will replace most or some of their job functions
18% of UK workers believe that AI will have no impact on their jobs, placing them in the top 5 out of the 18 countries studied in the survey

London – 10 October 2024: In today's highly competitive and rapidly evolving workplace, skill development and training are more crucial than ever. Global workers, however, have expressed dissatisfaction with their employers in this area, according to the ADP Research’s People at Work 2024: A Global Workforce View. Moreover, a worker's skill level directly influences their perspective on the growing impact of artificial intelligence (AI).

While most (60%) agree they have the skills needed to advance their career to the next job level in the next three years, less than half (47%) feel their employer invests in the skills they need to advance. Almost half of the global workforce surveyed agree that future skill sets will include technological abilities that are not currently seen as essential for the job.

Sirsha Haldar, General Manager for Northern Europe at ADP says: "It's concerning, though not surprising, that workers feel their employers are not prioritising their career development through skills training. Employers today are managing multiple serious priorities, from navigating shifting workplace dynamics to meeting employees' expectations around pay. However, this data should serve as a wake-up call. Skills development is clearly something employees desire, and we know that it’s a critical factor for career progression, engagement, retention, and business outcomes. Employees are the backbone of every business, so prioritising their development should be among the key business drivers."

A generational divide

When considering the skills confidence gap, differences are apparent across generations.

Among workers aged 18 to 24, only 43% think they have the skills they need to advance their career. That sentiment changes quickly as workers age, however. Among 25- to 34-year-olds, 62% say they have the skills they need. Young adults aren’t reluctant to ask for training. More than 72% of 25- to 34-year-olds talk to their employers about skills and training, as do 69% of their younger colleagues.

Mixed views on role of AI

According to the research, a significant portion of workers (43%) view the integration of AI into their jobs positively, anticipating it will assist them in various tasks. However, a similar percentage (42%) are concerned that AI will replace some or most of their job functions. Among those who expect regular assistance from AI, a high percentage (70%) feel confident about their skills for career advancement in the next three years. Conversely, those with less confidence in their skill set (45%) are more apprehensive about AI's impact on their jobs, particularly as they perceive less employer investment in skills training. This suggests a direct correlation between workers' confidence in their skills and their perception of employer support in the face of AI advancements.

Smaller companies lead in skills development

Smaller companies do well when it comes to skills development. Employers with between 100 and 249 workers win the highest marks on training, with nearly 57% of workers reporting confidence in their ability to obtain needed skills on the job. At companies with 1,000 or more employees, only 35% of workers feel they’re being offered the skills training they need to advance their careers.

Skills gap confidence in the UK:

While this skills gap confidence is very much a global issue, there are nuances among regions. The report highlights the following issues in the UK:

Career Progression Concerns: Lack of career advancement is a major driver of job dissatisfaction in the UK. Of those surveyed who were not satisfied with their current employment, 26% cited a lack of career progression as the primary reason. Globally, this figure is just 18%, and demographically the discrepancy is even more significant.

Women and early-career professionals are the most concerned. 29% of women in the UK identify career progression as their main concern compared to just 17% of women globally, highlighting more gender discrepancy in development confidence in Britain. Furthermore, 31% of all those aged between 25-34 in the UK’s primary concern is career progression, compared to just 17% in the same age-range globally.
AI Anxiety Among Younger Workers: While only 12% of UK workers believe AI will replace most of their job functions within the next 2-3 years, this sentiment nearly doubles among younger professionals. A striking 23% of those aged 18-24 anticipate AI disrupting their roles in the same timeframe, indicating heightened concern about skills and job security among the younger workforce.
UK workers Focus on People Skills Amid Shifting Priorities: Globally, 33% of workers rank people skills as the most important for their roles over the next five years, but this jumps to 42% among UK employees – highlighting a stronger focus on interpersonal abilities. Interestingly, UK respondents place less emphasis on management skills (30%) compared to the global average of 38%, suggesting a shift in priorities where collaboration and communication are seen as more critical for success.

Sirsha Haldar comments: “The world is changing fast with AI and GenAI being used more and more. This is going to result in complete change in many job definitions. Both employees and employers will need to brace for constant upskilling and reskilling needs. I think our companies need to consider more long-term structure and additional funding for skills development to remain competitive or even to survive.”

ENDS

For more insights, please read the ‘People at Work 2024: A Global Workforce View’ report

About the research
People at Work 2024: A Global Workforce View explores employees’ attitudes towards the current world of work and what they expect and hope for from the workplace of the future.

ADP Research surveyed 34,612 workers in 18 countries around the world between 22 October – 24 November 2023, with at least 500 per market specifically in the gig economy. This included:

15,383 in Europe (France, Germany, Italy, the Netherlands, Poland, Spain, Switzerland and the United Kingdom)
9,567 in Asia Pacific (Australia, China, India, Japan and Singapore)
5,860 in Latin America (Argentina, Brazil and Chile)
3,802 in North America (Canada and the United States)

Within the worker sample gig workers and traditional workers were identified. Gig workers were identified as those who work on a contingent, temporary, or seasonal basis, or as a freelancer, independent contractor, consultant, gig worker, or use an online platform to source work. Traditional employees were identified as those who are not working in the gig economy and instead have a permanent full or part-time position.

The survey was conducted online in the local language. Overall results are weighted to represent the size of the working population for each country. Weightings are based on labour force data from the World Bank,¹ which is derived using data from the ILOSTAT database, the central statistics database of the International Labour Organization (ILO), as of February 8, 2022.

About ADP Research

The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policymakers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.

About ADP (Nasdaq: ADP)

Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential. HR, Talent, Time Management, Benefits and Payroll. Informed by data and designed for people. Learn more at ADP.com.

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Media Contacts:
Archie Lowery

Palina Antonava
Adp@greentarget.co.uk