Skillsoft’s 2025 Global Skills Intelligence Survey has found that only 10% of HR and learning and development professionals are fully confident that their employees can deliver on business goals over the next couple of years. The research surveyed 1,000 HR and L&D professionals across the United States, United Kingdom, Germany and Australia.
The main shortages are in leadership, AI and technical knowledge. These areas are also the most overstated in the UK workforce. Employees often overplay their abilities, and this makes the skills gap look even bigger than it already is. Skillsoft reported that this exaggeration has led to weaker teamwork, more stress for managers and a gap that keeps getting bigger, between what workers think they can do and what businesses need them to do.
For many organisations, this isn’t so much a skills issue, it is more so a growth problem. Around 28% of those surveyed said these gaps restrict their ability to break into new markets or try new ventures. Nearly 1/3 said that between 41% and 60% of their new hires come in already missing crucial knowledge. That puts pressure on both learning programmes and everyday operations.
Why Is Confidence So Low?
One reason for the lack of confidence is poor visibility. Only 18% of organisations measure worker skills on a regular basis. This means leaders are often left guessing about the true abilities of their staff. According to the survey, 91% of HR professionals believe employees overstate their competence in leadership, AI and technical areas. That mismatch between perception and reality creates frustration when big projects hit delays.
Organisations do have training systems in place. Skillsoft’s data showed that 85% run development programmes, but only 6% describe them as outstanding. In fact, just 20% believe their strategies line up with business goals. The rest run fragmented or outdated programmes that fail to connect with workplace outcomes.
Employee engagement is also a problem with 1/3 of respondents saying their companies do not properly deal with engagement issues. Another 27% said their employers are focused on the present rather than preparing staff for the demands of the next few years. In some cases, employees are even promoted without the right preparation, creating gaps at leadership level.
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What Role Does AI Play?
AI is both the problem and the solution to all of this because on one hand, 41% of HR professionals said their workforce resists change, while 28% put this on a lack of technical expertise in AI itself. There is also the worries that AI technology is moving faster than upskilling can keep up, with 24% worried about falling behind.
On the other hand, nearly half of respondents saw AI as a tool that could strengthen skills intelligence by providing more accurate analysis of gaps. Desired improvements include adaptive training, getting feedback in real time and interactive simulations. These AI-powered features could make learning more personal and better matched to what businesses actually need.
The research also showed which formats workers value most. Online video training, mentorship and sessions led by instructors are still popular. But demand is getting higher for AI-native solutions that can create unique learning processes and measure results continuously. Without that evolution, many programmes risk being seen as generic or irrelevant.
What Happens If Nothing Changes?
The figures show evident risks with 37% of HR professionals fearing losing their best employees to competitors who have better development options. 1/3 see burnout as a direct barrier to transformation. When skills don’t match business needs, projects stall, frustration grows and businesses struggle to keep momentum.
Skillsoft’s Chief People Officer, Ciara Harrington, said the findings should be a wake up call and that business transformation depends on the strength and adaptability of the workforce. If companies do not connect skills, intelligence and performance, they will honestly struggle to keep up with change.
