Amid the fast-paced tech developments and ongoing skills gap challenges facing many businesses, the newly-released “People at Work 2025” report by ADP Research revealed that only 24 per cent of the global workforce is confident they have the skills needed to advance to the next job level in the near future. Moreover, only 17 per cent of workers strongly agree their employers are investing in the skills they need for career advancement.
The situation in Australia is particularly concerning, as only 19 per cent of workers believe they possess the skills needed to advance in their careers over the next three years. This figure is slightly lower than the 21 per cent average in the Asia-Pacific (APAC) region.
Adding to this challenge is the perceived lack of investment from employers in upskilling their staff; only 14 per cent of Australians feel that their employers invest in their skill development, which is below the APAC average of 17 per cent.
This sentiment is especially pronounced among older Australian workers, with only six per cent of those over 55 believing their employers are investing in the skills necessary for their career progression.
ADP Research’s analysis found providing employees with the skills of tomorrow is correlated to productivity, retention and reputation. This means that employers need to focus more on skills development rather than building a workforce that keeps pace with today’s dynamic workplace.
“Our research shows that a skilled workforce is more loyal to their employers – and more productive. Yet only a small fraction of workers are upskilled within two years of being hired,” said Nela Richardson, chief economist, ADP. “If companies want to benefit from the enormous technological advancement to come, they must start with investing in the skills and career progression of their workers.”
What are businesses doing to combat skills shortages?
Another piece of research conducted by marketing solutions provider Localsearch found that 65 per cent of Australian small-business owners are experiencing pressures due to skill shortages, with a quarter reporting they still haven’t bounced back from COVID.
To address skills shortages, 25 per cent of small businesses are taking on more junior staff for training and 33 per cent are shifting their focus to potential over skill and hiring based on personality and work ethic instead of experience.
In relation to this, ISB reached out to a number of small-business owners in November 2024 to determine how they are keeping up with the changing skill needs in the wake of the ever-evolving technology landscape.
Some business leaders have resorted to hiring new talent to help them keep up with changing demands in the workplace. Lel Smits of the Stock Network, who hired data specialists to keep on top of her digital strategy, said, “As AI and emerging tech evolve, we foresee growing our team further, ensuring we stay at the forefront of digital education.”
However, many SME owners have opted to instead absorb these demands themselves by expanding the job roles of existing personnel rather than create new jobs.
Jo McKenzie, who runs her virtual digital support business Call on Jo entirely solo, expressed overwhelm at the amount of technological change. “[Solopreneurs] are often taking on pretty much all of the roles that the big businesses have employees for.”
