From Skills Gap to Strategic Strength: HR’s Competitive Advantage

Amid enterprises navigating economic uncertainty, the ‌rapid adoption of generative AI, and seismic shifts in how (and where) we work, human resources (HR) and learning and development (L&D) leaders are redefining their roles. Instead of being labeled as just another cost center or support function, HR and L&D teams are establishing themselves as the strategic partners for the business in any organization looking to reshape how they grow, retain, and energize employees through periods of change. Central to this shift is closing the skills gap through upskilling and continuous learning, with both helping fuel the next wave of business growth. 

But prioritizing skills development is challenging, especially with varying levels of engagement, trust, and interest from an increasingly disengaged workforce. Udemy’s latest global research, “Board-Proofing Learning Programs: How to Speak Business and Deliver Outcomes,” explores how learning and HR leaders are building future-ready workforces and overcoming barriers to successfully upskill teams. 

Below, we break down the key insights from the research (including data that supplements the report) and highlight how forward-thinking organizations are using skills-based strategies to drive retention, boost productivity, and get ahead.

1. Skills Gaps Are Mission-Critical Business Opportunities 

Skills gaps aren’t just an issue with finding qualified talent. The World Economic Forum found 63% of employers see skills gaps as the biggest barrier to business transformation, representing significant strategic risks to any company looking to stay competitive. Udemy’s research shows that nearly half (47%) of leaders surveyed say their learning strategy is fully connected to their company’s business goals. This shows there’s still room for organizations to use learning programs to reduce skills-related risks to long-term success through learning strategies. 

Fortunately, addressing skills gaps presents an opportunity for HR leaders to drive business transformation through strategic workforce planning. Udemy’s research shows by hiring based on skills instead of traditional benchmarks like degrees, coupled with investments in developing the skills of current talent, HR and L&D leaders can drive significant business impact: 

• 63% report aligning learning with business strategy improved productivity and retention.
• 56% say skills-based approaches are essential to achieving business goals.

Skills-first learning is no longer optional. It’s an imperative business strategy that leaders can use as a roadmap for strategic workforce planning, paving the way for increased organizational agility and growth. 

2. Skills-Based Learning Ignites Employee Engagement 

As the workplace continues to adjust to the impact of AI and new mandates define when and where we work, employees are questioning their growth potential, opting out quietly (queue the Great Detachment) when they don’t see a path forward. This is where leaders are finding a skills-first strategy, tied to business goals, makes a measurable difference: 

• 78% of Udemy survey respondents say employee engagement is a top priority.
• 66% of leaders report that when skills development is tied to business goals, they see improved employee engagement and internal mobility.

Udemy’s data shows employers that treat upskilling as a strategic lever, and not just HR overhead, are better equipped to retain top performers and build resilience. With uncertainty and change fatigue impacting the workforce, skills-based strategies drive clarity, confidence, and momentum for both employees and businesses.

3. For AI-Powered Upskilling, Trust is Key

Udemy’s research found organizations ‌are leveraging AI-powered tools to improve the learning experience, reshaping the way learning happens across teams with positive results: 

• 43% are already using AI tools to power adaptive learning at scale.
• 84% say AI-driven learning tools have improved engagement and effectiveness.
• 74% of large organizations (i.e. 5,000+ employees) say AI-powered learning significantly enhanced productivity.

But even with robust learning programs in place, employee resistance and lack of trust in AI-driven tools remain hurdles to upskilling. In Udemy’s survey:

• 48% cited privacy concerns related to AI-driven skills assessments.
• 46% of large organizations questioned AI’s accuracy in assessing learning needs. 

Leaders must address these concerns, taking an ethical, employee-first approach to AI in learning. For AI tools to achieve their potential, employees need to buy-in and adopt – but this won’t happen without employee trust. Organizations that are transparent and address the ethical concerns around ‌AI-powered learning with employees have a higher likelihood of increased participation in upskilling programs that give their teams a competitive edge. 

4. Global Learning Preferences: Learning Isn’t One-Size Fits All 

While the need for upskilling is universal, Udemy’s research reveals significant regional differences in how employees approach workforce learning. The workforce is only getting more connected, bringing these regional differences and preferences to light. Leaders must bridge these regional gaps to facilitate growth and collaboration. 

HR and L&D business priorities and learning barriers to upskilling vary across countries. 

• When assessing the desired impact learning strategies will have on business outcomes, 76% of HR leaders in India and 65% of leaders in Australia prioritize productivity. Meanwhile, 88% of UK leaders focus on engagement and 82% of U.S. leaders emphasize employee experience.
• India leads in AI adoption (63%), while the U.S. (50%), the UK (25%) and Australia (22%) are more hesitant to adopt AI-powered tools.
• Both the UK (47%) and Australia (36%) believe a lack of time for training and development is a main barrier to achieving goals and upskilling their teams. The U.S. (40%) and India (35%) are facing employee resistance that makes it challenging to upskill effectively.

HR and L&D teams who have a nuanced understanding of these learning priorities and preferences across countries are better positioned to not only address these needs, but be recognized as truly global, adaptive leaders. 

HR and Learning Leaders: Ushering in Transformation at Work 

The findings from Udemy’s research underscore that HR and learning leaders are uniquely positioned to drive transformation by making upskilling a core business strategy. In a fast-changing world of work, organizations that treat skills development as a strategic engine, not just a support function, will lead the way.

To download the full report, visit this page. To learn how Udemy can partner with organizations to drive skills-based talent management and learning, visit https://business.udemy.com. 

Report Methodology 

In July 2024, Udemy launched a public survey to explore how Learning & Development (L&D) and Human Resources (HR) professionals prioritize and implement their learning strategies within their organizations. We surveyed a global English-speaking population of 506 L&D and HR professionals across Australia, India, the United Kingdom, and the United States. Additionally, we collected information on firmographics (job seniority, industry type, job function, company size). Key data tables and statistics are included in the body of our report. All comparisons highlighted in the report are statistically significant at p<0.1. Statistical tests were conducted using a two-sided test of equality for proportion comparisons assuming equal variance.