New research published by skills development body City & Guilds Group reveals that employers across the world are racing to upskill their workforces. However, with digitalisation and fluctuating economies transforming the skills needed in the workplace today, employees are less confident than their bosses that they’ll have skills they need for the future.

The study, conducted by City & Guilds Group business Kineo, surveyed 6,500 employees and 1,300 employers across 13 international markets. It found that employers in more developed economies risk falling behind in the race to upskill as emerging economies are more likely to ramp up investment in learning and development (L&D) in the near future.

A significant 92% of Indian employers and 78% of Kenyan employers predicted a net increase in L&D investment in the next 12 months, compared to just 64% of US employers and 67% of Australian employers. The UK (54%) and Sweden (52%) came in last, with just over half of employers in these markets anticipating an increase in L&D investment.

As technological advances continue to transform the way we live and work, employers in developing economies are feeling the impact most acutely. While just 25% of employers in the US recognise the impact of digital transformation on their business, significantly more Kenyan (65%) and Indian (62%) employers consider this an important factor driving change. Equally, when it comes to automation and AI, the majority of employers surveyed in Malaysia (60%) and India (58%) found this to be a major driver of change, compared to just 27% of employers in the UK.

John Yates, Group Director – Corporate Learning, commented:

“Businesses worldwide are navigating a period of immense transformation – and this is particularly evident in emerging economies where organisations are embracing technology. But as the workforce becomes increasingly connected, there needs to be greater synergy in the way employers are tackling new and existing challenges. Better alignment will not only make it easier for businesses to collaborate across borders, but for individuals globally to feel confident they’re skilled for the future.

“Employers across the world need to listen their workers’ training needs and ensure they continue to focus on upskilling – or they risk losing employees to other markets who are making this a priority. Equipping workforces with the skills to succeed in the future is a marathon, not a sprint, but those who overlook the importance of skills investment risk dropping out of the race altogether.”

The research also showed that while 71% of employees across the world recognise that the skills they need to do their job will change in the next three to five years, only 67% say their employers are keeping pace with changing skills. This confidence drops to just 56% for workers in New Zealand and 58% in Sweden.

However, 81% of employers globally say they’re confident their staff have the skills their business needs for the next three to five years. This highlights a worrying perception gap, that – unless addressed – could lead to lower retention rates and compromised service levels and opportunities as employees seek out organisations who can better meet their training needs.

Paul Grainger, Co-Director of the Centre for Post-14 Education and Work, and Head of Enterprise and Innovation for the Department of Education, Practice and Society (EPS) at the UCL Institute for Education, commented:

“With businesses around the world facing different changes and challenges according to the specific economic, cultural, political, demographic and technological factors of their location they will have to react and develop the skills of their workforce in a way that is specific to their context.

“The foreseeable future is likely to be dominated by emerging digital technologies. These can help individuals and communities to grow, become more agile, develop skills and network with a wider, global community. As these technologies are able to transcend borders, they help organisations and the communities in which they are based to adapt to the evolving needs of the community and the world at large. They support agility. And as workplace change is increasingly rapid, it is likely that those regions actively engaged in emerging markets will be better placed to manage the tensions between flexibility and predictability.”

Read the full report here.