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Skills Development Key to Workforce Retention: Insights from ADP

Investing in employee skills development yields benefits far beyond creating a prepared workforce. ADP Research’s refreshed “People at Work 2025” report reveals only 24% of the global workforce feels confident they have the skills needed to advance in their careers, and only 17% strongly believe their employers are investing in their growth.

Key Findings from the Report

  1. Workforce Confidence and Employer Investment
    • Just 24% of workers are confident they possess skills for career advancement in the next three years.
    • Only 17% strongly agree their employers invest in their professional growth.
  2. Skills Development and Business Outcomes
    • Workers with robust training programs are:
      • 6x more likely to recommend their company as a great place to work.
      • 3.3x more likely to report high productivity.
      • 2x more likely to remain with their current employer.
    • Career advancement opportunities rank second only to schedule flexibility in reasons workers stay with their employers.
  3. Insights on Specific Worker Groups
    • Cycle workers, who perform repetitive daily tasks, report low satisfaction with upskilling opportunities: only 9% of men and 7% of women express satisfaction.
    • Regional perspectives:
      • Workers in Middle East & Africa are the most confident in their skills (38%).
      • Workers in Europe report the lowest confidence (17%).

Statements from ADP Leaders

  • Nela Richardson, Chief Economist, ADP
    • “A skilled workforce is loyal and productive. Companies must invest in their workforce to keep pace with technological advancements.”
  • Mary Hayes, Research Director, ADP
    • “Education alone isn’t enough to bridge the skills gap. Employers need to actively close this gap to prepare for the future of work.”

Report Methodology

The “People at Work 2025” report is based on ADP’s Global Workforce Survey, which gathered insights from 38,000 employees in 34 markets across six continents. It features a proprietary methodology for granular workforce segmentation by demographics, roles, and work types (knowledge, skilled task, or cyclical).

Regional Findings on Employer Investment

  • Employers in Egypt (35%), India (32%), and South Africa (29%) are most likely to invest in skills development.
  • Employers in Europe (12%) and Asia-Pacific (17%) lag in investments.

Benefits of Workforce Training

Investing in upskilling programs leads to:

  • Improved retention rates.
  • Enhanced workforce productivity.
  • Strengthened employer reputation.

Future Trends and Recommendations

Employers must align skills development strategies with global trends, such as:

  • Leveraging artificial intelligence.
  • Addressing inflation’s impact on multiple jobs.
  • Building data-driven, tailored talent strategies.