Bridging the Skills Gap: The Role of Training and Development in Workforce Retention

• 69% of employees prioritise training, revealing a growing skills gap.
• Younger employees value career development; Boomers prioritize traditional benefits.
• Underinvestment leaves employees unsupported, impacting trust and workplace culture.
• Job prioritisation has increased by 57% since 2022.

As businesses worldwide navigate a complex post-pandemic environment, retaining top talent has become a central challenge. A recent study revealed that training and development now top the list of what employees value most, with 69% prioritising these opportunities in 2024, up from 57% in 2022. This rising demand highlights a critical gap in workplace support structures—an issue amplified by the disparity in perceptions between managers and employees regarding the importance of training. Managers frequently underestimate its value, leading to a 31% disconnect between the two groups.

The stakes are particularly high in multigenerational workforces. Career development consistently ranks as the most important benefit for Generation X, Millennials, and Gen Z employees. Interestingly, Baby Boomers buck this trend, valuing other workplace incentives more. Coupled with an increasingly empowered workforce unafraid to hold leaders accountable for mistakes, organisations must focus on closing the skills gap to build trust and loyalty.

“Employees often feel like they’re being set up for failure.”

To delve deeper into this issue, Bianca Luck, NSW Director at people2people, shared her insights during a recent interview on AFR with Euan Black. Highlighting how workplace dynamics are evolving, Bianca pointed to chronic underinvestment in leadership training as a root cause for employees feeling unsupported.

“Employees often feel like they’re being set up for failure,” Bianca stated. “This perception stems from a lack of confidence in their leaders’ ability to guide them effectively, which is closely linked to organisations not prioritising upskilling managers.”

This disconnect not only impacts individual roles but also the overall workplace culture. Bianca explained that leaders need to embrace lifelong learning to foster a more inclusive and adaptive environment. “Managers who invest in their own professional growth are far better equipped to navigate challenges and build resilient teams.”

Another point Bianca raised was the significant generational shift in workplace priorities. “For younger generations like Millennials and Gen Z, training and career development aren’t just perks—they’re non-negotiable essentials,” she noted. This contrasts sharply with Baby Boomers, whose workplace needs tend to align with traditional benefits such as financial stability.

Bianca also addressed the growing confidence of today’s workforce in holding managers accountable. “Employees today have higher expectations of their leaders,” she said. “This empowerment is a double-edged sword—while it drives accountability, it also means leaders must be prepared to adapt quickly and own their mistakes.”

To overcome these challenges, Bianca stressed the importance of transparent communication and collaborative goal-setting. By aligning leadership development initiatives with employee expectations, organisations can rebuild trust and enhance engagement.

Practical Tips for Closing the Gap

To ensure businesses are set up for long-term success, consider these actionable strategies for supporting your workforce:

1. Prioritise Leadership Training: Equip managers with tools and techniques to lead effectively. Focus on skills such as conflict resolution, empathy, and adaptability to build stronger teams.
   
   
2. Tailor Development Opportunities to Generational Needs: While younger employees may value mentorship and skill-building workshops, older generations might prefer coaching sessions focused on leveraging existing expertise.
   
   
3. Embed Continuous Feedback into Workplace Culture: Encourage regular check-ins between employees and managers. This fosters trust, helps identify support gaps, and aligns team goals with broader organisational objectives.
   
   
4. Offer Flexible Learning Options: From online courses to in-house training sessions, providing a variety of formats ensures accessibility for all employees.