Workforce Development

SHRM prioritizes strategic, responsible approaches to artificial intelligence (AI) and other emerging technologies, recognizing that their impact on work must keep human intelligence, trust, and workforce readiness at the center. AI and automated decision systems are reshaping how organizations recruit, manage, and support talent, and HR plays a critical role in ensuring these tools are deployed in ways that strengthen—rather than undermine—workforce outcomes.

SHRM emphasizes an AI + Human Intelligence (AI+HI) approach that pairs technology with human judgment, creativity, and accountability. AI should augment decision-making, not replace it. While AI can drive efficiency and innovation, worker concerns around transparency, job disruption, and fairness are real and must be addressed proactively. Building trust requires investing not only in technology, but also in the people who design, manage, and work alongside these systems.

Doing so means prioritizing upskilling, reskilling, and AI literacy to prepare workers for evolving roles, supporting managers overseeing AI-enabled decisions, and reducing legal, operational, and reputational risk. Organizations that align AI with long-term workforce strategy are better positioned to remain competitive in an increasingly technology-driven economy.

SHRM drives initiatives that strengthen talent pipelines and ensure workers are prepared for the skills of tomorrow. SHRM research found that more than two thirds of organizations (69%) are still struggling to fill roles, reflecting 2016 levels after peaking in 2022. This has left critical vacancies for U.S. employers accessing the talent needed to meet both current and future workforce demands. Declining birth rates, an aging population, and uneven labor force participation continue to constrain talent pipelines. Without targeted action, these pressures will intensify as technology reshapes skill requirements across industries.

As jobs evolve, workers need accessible pathways to gain relevant skills through a range of options, including four-year degrees, community colleges, apprenticeships, and industry-recognized credentials. Misalignment between education, training, and employer needs continues to limit labor market participation and productivity.

Employers and governments have a shared responsibility to help equip individuals with the valuable skills they need to become employed and to continue to advance in their careers. SHRM supports forward-looking policy solutions that expand access to training, reduce barriers to employment, and strengthen connections between education and work. A strong labor force is essential to economic growth and organizational success.

SHRM champions the engagement of untapped talent as essential to workforce development and labor force growth. Millions of capable Americans remain underutilized in the labor market, including veterans and military spouses, caregivers, people with disabilities, older workers, individuals with criminal records, and opportunity youth. These populations bring valuable skills, experience, and potential return on investment, yet continue to face systemic barriers to employment and advancement.

The SHRM Foundation defines untapped talent as individuals who are willing and able to work but encounter persistent obstacles rooted in outdated hiring norms, limited awareness of support needs, and insufficient workplace systems. Across populations, employment gaps reflect not a lack of capability, but a lack of employer understanding and infrastructure.

Many organizations lack the tools and practices needed to effectively recruit, onboard, and retain these workers, including accessible hiring processes, skills translation, flexible scheduling, clear career pathways, and manager training. Without intentional strategies, employers narrow their talent pipelines and limit workforce resilience. Engaging untapped talent is not only a workforce imperative — it is a competitive advantage in a constrained labor market.

SHRM emphasizes the need for continuous learning as technological change and organizational growth fundamentally reshape workforce skill demands. Employers increasingly report difficulty filling roles because existing positions require new or updated skills. Data analysis, AI, and cybersecurity are among the most in-demand technical capabilities, while human-centered skills — such as complex problem-solving, judgment, and resource management — remain critical.

Organizations recognize this shift: over half cite growth and changing technology as primary drivers of evolving skill needs, and nearly 80% report difficulty finding applicants with systems and resource management skills. These trends underscore the importance of proactive upskilling and reskilling strategies.

Continuous learning is critical to meeting future skill demands, enabling internal mobility, and strengthening retention. Workforce development requires investment not only in technical capabilities, but also in leadership, judgment, and adaptability. SHRM supports a human-centered approach to skills development that aligns organizational priorities with a strong, prepared workforce.

SHRM advocates for modernized apprenticeship programs that encourage broader employer participation and reflect the realities of today’s workforce. Apprenticeships combine structured, on-the-job training with classroom or online instruction, creating a proven pathway to job-ready talent. Despite their effectiveness, apprenticeships remain underutilized. SHRM’s 2025 Talent Trends show that only 22% of organizations offer or partner with registered or customized apprenticeship programs. Among those employers, however, 82% report their programs are somewhat or very effective in addressing talent shortages. This demonstrates that apprenticeships can serve as a high-impact talent pipeline, even though most employers have yet to adopt them.

Well-designed apprenticeship models align learning directly with organizational needs, helping bridge the gap between education and employment. They also offer a strategic advantage in industries experiencing acute skills shortages and can be structured to expand access to opportunity by recruiting from untapped talent pools, as entry requirements are often more flexible than traditional roles.

SHRM supports employer-driven apprenticeship models that are flexible and outcomes-focused. SHRM will continue to serve as a bridge between policy and practice to help scale apprenticeships as a sustainable workforce development solution.

SHRM supports policies that expand access to flexible, tax-advantaged benefits and simplify their use, ensuring employers of all sizes can invest in their people and support a skilled, adaptable workforce. Tax-advantaged benefits play a vital role in attracting and retaining talent, supporting skills development, and helping workers manage the costs of education, short-term credentialing, paid leave, and flexible savings options. 

When structured effectively, these benefits help workers remain engaged in the labor force while adapting to evolving job requirements.

As workers build new skills to improve productivity and pursue advancement, employer investment in professional development signals a strong commitment to workforce growth. Well-designed benefits support both employee success and organizational performance.

SHRM’s Employee Benefits Survey shows that 45% of organizations offer undergraduate or graduate tuition assistance, while 8% provide student loan repayment assistance. Although participation has declined slightly, the average maximum education assistance benefit increased to $5,372, suggesting employers are seeking to better address rising education costs.