Organizations face significant growth risks as widening skills gaps leave them unprepared for future business demands, with just 10 per cent of HR and learning professionals fully confident their workforce has the necessary skills for the next two years, according to new research.
The 2025 Global Skills Intelligence Survey from Skillsoft found that nearly one-third of organizations see skills as the key factor that could determine their growth success or failure. The survey of 1,000 HR and learning and development professionals across the United States, United Kingdom, Germany and Australia was conducted from May to July 2025.
Leadership and AI top skill shortage list
The research identified leadership, artificial intelligence and technology as the most significant skill shortages facing organizations, according to Skillsoft. Despite 85 per cent of respondents having talent development systems in place, only six per cent rate them as “outstanding,” and just 20 per cent believe their talent strategies align with organizational goals.
Fewer than one-quarter of organizations use a consolidated platform approach that provides a clear view of workforce capability, the survey found. Respondents described their current solutions as fragmented, overly manual and lacking customization.
Transformation barriers threaten growth
Organizations face multiple obstacles that put growth at risk and highlight the need for stronger talent strategies, the research revealed. Critical organizational challenges include employee engagement issues not being effectively addressed, affecting 33 per cent of respondents, according to the survey.
Twenty-seven per cent report their organization focuses on the present rather than planning for the future, while 26 per cent see employees promoted without adequate preparation. Future of work concerns include 37 per cent fearing they will lose top talent to more agile competitors and 33 per cent citing burnout as a barrier to transformation.
AI adoption also presents hurdles, with 41 per cent saying their workforce is resistant to change and 28 per cent pointing to the need for greater technical expertise, the survey found.
Skills intelligence remains limited
Organizations struggle with limited visibility into workforce skills, which can slow progress and reinforce the importance of actionable skills intelligence, according to the research. Only 18 per cent measure the success of their talent development programs through regular skill assessments throughout the learning journey.
The survey found that 91 per cent of respondents say employees overstate their skills, most commonly in leadership, technical and AI expertise. This overstating of skills impacts businesses by exacerbating skill gaps (36 per cent), reducing productivity (34 per cent) and increasing manager stress (31 per cent), according to the findings.
Nearly half of respondents (49 per cent) see opportunity for AI to enhance skills intelligence solutions to deliver more accurate, actionable skill gap analyses, the research showed.
Traditional learning methods dominate
Organizations continue to offer a strong mix of traditional learning experiences, with online video-based training being the most common at 58 per cent, followed by group training scenarios (57 per cent), mentorship opportunities (50 per cent) and live instructor-led training (50 per cent), according to the survey.
However, many organizations are looking to AI-native capabilities to personalize development and better align talent strategies with business goals. Desired AI-powered enhancements include adaptive training (43 per cent), real-time feedback (42 per cent), interactive simulations (38 per cent) and personalized learning paths (33 per cent).
“Business transformation depends on the strength, adaptability, and skills of the workforce,” said Ciara Harrington, Chief People Officer at Skillsoft. “These findings should be a wake-up call for every leader. Skills gaps are already impeding growth, and traditional approaches to talent development are only worsening the issue.”
The research points to the value of connecting skills to every facet of business strategy, with leaders who understand their organization’s strengths and gaps positioned to adapt faster and stay competitive in a changing market, according to Skillsoft.
