The first study in ADP Research’s updated “People at Work 2025” report series reveals a significant gap between employee confidence in their career advancement opportunities and the level of investment employers are making in skills development. The report shows that only 24% of the global workforce feels confident in their ability to advance in their careers due to lack of adequate skills, with a mere 17% of workers believing their employers are adequately investing in their skills development.
The Importance of Skills Development
According to Nela Richardson, ADP’s Chief Economist, investing in skills is essential for improving employee loyalty, productivity, and organizational reputation. She explains that a skilled workforce is not only more loyal but also more productive. However, the analysis found that a significant portion of employees—only 24%—actively upskill within the first two years of their employment.
“Organizations must start investing in the skills and career advancement of their workers to keep pace with technological advances,” said Richardson.
Key Findings from the Report
- Skills Development is Essential for Employee Retention
- Opportunity for advancement is the second most important reason why employees stay with their company, following flexible hours.
- Employees who feel their company provides adequate training are nearly 6 times more likely to recommend their workplace as a great place to work.
- These workers are 3.3 times more likely to describe themselves as highly productive and twice as likely to stay with their organization.
- The Challenges of Upskilling Cyclical Workers
- Cyclical workers—those in repetitive jobs—express particularly low satisfaction with their employers’ investment in upskilling, with only 9% of men and 7% of women satisfied with their training opportunities.
- Regional Insights
- Workers in the Middle East and Africa (38%) report the highest confidence in having the skills to advance, followed by Latin America (32%), North America (22%), Asia-Pacific (21%), and Europe (17%).
- Similarly, Middle East and Africa workers (28%) are most likely to believe their employers are investing in skill development, followed by regions like North America (18%) and Europe (12%).
- Countries Leading in Skills Confidence and Investment
- Nigeria leads the way with 45% of workers confident they have the skills to advance, while Egypt (35%) is at the top for employer investment in employee skills.
- Egypt, India, and South Africa have shown the highest rates of employer investment in skills development.
The People at Work 2025 series emphasizes the urgent need for businesses to invest in skills development to stay competitive. As the global workforce becomes increasingly dynamic, employers who fail to prioritize workforce training risk losing top talent and falling behind in productivity. Providing employees with opportunities to upskill not only helps them advance in their careers but also directly contributes to the long-term success of organizations.
