Over a quarter of organizations surveyed (28%) reported that filling full-time regular positions required candidates to possess new skills. Among them, nearly half (47%) reported that these positions were primarily existing roles that needed to be modified or updated to include new skills. This shift is not just a response to change, but a necessity to maintain a competitive edge in an increasingly technology-driven world of work. As such, organizations with job postings that required new skills reported the top three new technology-related skills required are data analysis (36%), AI (31%), and cybersecurity (21%).
This growing demand for advanced competencies highlights a widening gap between the skills organizations need and the availability of qualified talent in the workforce, with 4 in 5 organizations reporting difficulties finding qualified candidates with these new skills. This indicates that not only is the skills landscape constantly changing, but the pace at which the workforce is developing those skills may not be fast enough to meet current business needs without employer intervention.
KEY FINDING NO. 1
Technology Drives Workforce Evolution
Organizational growth and advancements in technologies are prompting organizations to re-evaluate the skills required across their workforce. More than half of organizations report growth of the organization (54%) and changing technology (53%) as the primary drivers behind roles requiring new or updated skills. Growth encompasses a variety of factors, including increased staff size, revenue expansion, and rising sales, all of which create a demand for new competencies to sustain operations and support scaling efforts. Similarly, advancements in technology, such as the improvement of AI and automation tools, are reshaping job roles, requiring employees to possess updated technical expertise and adapt to new tools and workflows.
While these remain the leading causes, the demand for increased productivity has seen the most notable rise among contributing factors in the last year. Forty-three percent of employers hiring for positions that required new skills in the past 12 months report an increase in the required pace of work or productivity as a top contributor to these new skill requirements, up 6 percentage points from 2024.
Pressure to Predict Future Skills
According to research by Lightcast, over the past three years, the average job has seen 32% of its skills change. Additionally, according to research by Microsoft and LinkedIn, skills are projected to change by 50% globally by 2030 and generative AI is expected to accelerate this change to 68%.
What This Means for Your Organization
For HR professionals, these trends emphasize an urgent need for organizations to establish systems for continuous skills forecasting by leveraging data analytics and industry trend reports. Robust skills forecasting requires integrating both internal employee data and external market intelligence to identify emerging skill demands. This enables HR teams to stay ahead of trends such as digital transformation, AI adoption, and consumer market shifts. By continuously monitoring these forces, organizations can anticipate skills gaps that may arise from technological advances or industry changes and take proactive measures to mitigate them. For example, analyzing the impact of AI on customer support functions could reveal a growing need for specialized training in machine learning and conversational AI tools.
Benchmarking against industry standards is a critical component of this strategy. Without regular benchmarking, organizations risk falling behind competitors who are quicker to adapt to best practices or urgently needed competencies. For HR leaders, this means creating deliberate processes to compare their workforce capabilities with industry benchmarks and identify areas for improvement. Tools such as third-party skills assessment platforms or industry consortium reports can provide essential insights to guide this process.
Ultimately, these trends reflect a larger imperative for HR professionals and organization leaders to adopt a forward-looking approach to workforce management. By aligning data-driven skills forecasting with strategic action, organizations can ensure they stay ahead of changing technology and productivity demands. This proactive stance not only secures organizational competitiveness but also empowers employees to thrive in a dynamic professional landscape, reinforcing the significance of people as an organization’s most valuable asset.
At the Heart of It All: Strategic Workforce Planning
Design sustainable frameworks to ensure that forecasting leads to actionable outcomes. For instance:
Targeted learning pathways are pivotal for preparing employees for new roles or responsibilities.
These pathways, tailored to the unique demands of the business, allow for personalized, role-specific development plans rather than one-size-fits-all training programs.
Leveraging learning management systems can streamline this process, allowing HR to match skill-building initiatives with individual employee needs and business objectives.
KEY FINDING NO. 2
Human Skills Outrank Technical Ones
While organizations reflect on technological advances in their workforce planning strategies, they also recognize the importance of human-centric skills as key contributors to workforce success. When asked what level of demand employers currently have for various skill types (e.g., basic skills, systems and resource management skills, social skills, and technical skills), more human skills such as systems and resource management skills, which include complex problem-solving and judgment and decision-making, and social skills outpaced technical skills in terms of current demand. Looking ahead, when asked which of these four skill types they anticipate will be most critical to their organization’s success in the next five years, nearly half of respondents (49%) said systems and resource management skills will be the most important moving forward.
What This Means for Your Organization
Nearly half of organizations recognize systems and resource management skills as critical for future success, yet 78% report difficulty finding candidates who possess them. This means that while there is a highly anticipated demand, there may be a lack of employees in the pipeline to meet this growing need over the next five years unless organizations are proactive in seeking solutions. This mismatch underscores a pressing need for employers to prioritize workforce development in these areas. Unlike specialized technical skills that often require extensive, niche training, systems and resource management skills such as problem-solving and decision-making are universally applicable and relatively straightforward to nurture through targeted L&D programs. While technological skills are undeniably important in the digital age, organizations must not overlook the critical role that human-centric skills play in driving connection and innovation. By balancing investments in both of these areas, organizations stand to gain a well-rounded workforce equipped to meet the demands of the future. However, achieving this requires deliberate commitment from organizational leaders to invest in the growth of their employees. Without a proactive approach, organizations risk being unprepared to meet their future needs in a fast-evolving market.
78%
of organizations report current difficulties finding applicants with systems and resource management skills.
RECOMMENDATION
Prioritize Reskilling to Address Emerging Workforce Needs
Investing in upskilling and reskilling initiatives will help organizations prepare their workforce for changing industry demands and technological advancements. By proactively equipping employees with future-focused skills, HR can ensure long-term organizational resilience and success.
- Identify key emerging skills using industry trend reports and workforce analytics.
- Develop targeted training programs to address skill gaps in critical areas.
- Partner with educational institutions or online platforms to offer accessible skill development opportunities.
Resources
HOW-TO GUIDE
How to Conduct a Training Needs Assessment
PODCAST
Upskilling and Reskilling: Using Tech to Prepare Tomorrow’s Workforce
PODCAST
The Skilled Trade Shortage
CONCLUSION
The shifting skills landscape, driven by organizational growth, technological innovation, and rising productivity expectations, presents both challenges and opportunities for organizations. The demand for new skills, driven by factors such as data analysis, AI adoption, and cybersecurity, is requiring organizations to adapt existing roles and create opportunities for upskilling. At the same time, the increasing momentum of productivity demands and rapid changes in technology underscore the urgency for strategic workforce planning that aligns skill development with future organizational objectives. Without a proactive investment in equipping employees with new technical proficiencies, companies may struggle to maintain their competitive edge in a marketplace where innovation drives success.
However, this transformation isn’t solely about technical expertise. An often-overlooked element is the rising importance of human-centric skills, including problem-solving, decision-making, and judgment. These capabilities are pivotal in creating a workforce capable of navigating complex challenges in a rapidly changing environment. While nearly 80% of organizations report difficulty in finding candidates with systems and resource management skills, the potential for nurturing these through well-designed development programs is immense. To stay ahead, organizations must foster a culture of continuous learning that equally values human skills and technological fluency. By doing so, they lay the foundation for a resilient workforce capable of addressing the demands of both present and future business landscapes.
Methodology
The survey was fielded to a sample of HR professionals via SHRM’s Voice of Work Research panel from Feb. 3 to Feb. 12, 2025. For the purposes of this study, participants were required to be employed full-time or part-time for an organization and employed in HR. In total, 2,040 HR professionals participated in the survey. Respondents represented organizations of all sizes in a wide variety of industries across the U.S. Data is unweighted.
Reference List
- 2024 Talent Trends: Artificial Intelligence in HR, SHRM, 2024.
- 2024 Work Trend Index Annual Report, Microsoft and LinkedIn, 2024.
- The Speed of Skill Change, Lightcast, 2025.