The ever-widening skills gap is now the top barrier to growth for organisations around the world, with outdated approaches to talent development leaving businesses unprepared to meet the demands of a rapidly changing economy, according to new research from Skillsoft.

After polling 1,000 HR and learning and development pros, the learning platform’s latest Global Skills Intelligence Survey found that just 10% of firms are confident that their teams have the skills to hit business targets over the next one to two years.

Nearly a third (28%) see skills as the key factor that could make or break growth over the short term, with the most serious skills gaps identified in AI and technology roles, with 24% concerned that AI is advancing faster than their workforce can upskill.

While most leaders recognise the need for business transformation in the AI era, the workforce isn’t as convinced, with 41% of firms reporting that their employees are so far proving resistant to change and more than a quarter (28%) needing more technical expertise among their ranks.

Finding out exactly what is required, however, is proving difficult. Almost all firms (91%) said that employees often overstate their skills, most commonly in technical and AI expertise, leading to exacerbated skills gaps (36%), less productivity (34%), and more stress for managers (31%).

Skillsoft noted that, despite growing pressure, companies are falling short by relying on outdated workforce development plans that don’t support their business objectives or employee demands.

For example, just 20% believe their talent strategies are good enough to meet their current goals, and while 85% of firms have talent development systems in place, only 6% rate them as “outstanding”.

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Meanwhile, the biggest skills gaps are unlikely to be closed with fewer than one-in-four (24%) using consolidated workforce platforms that provide a clear view of employee capability. 

Respondents also highlighted other pain points with their current solutions, describing them as fragmented, overly manual, and lacking customisation. Skillsoft said these limitations make it difficult to measure skills, address shortages, and build a workforce needed for today’s pace of change. 

“These findings should be a wake-up call for every leader,” said Ciara Harrington, chief people officer at Skillsoft.

“Skills gaps are already impeding growth, and traditional approaches to talent development are only worsening the issue. 

“To compete in today’s human-AI world, organisations must place skills at the centre of their strategy and evolve toward integrated platforms that connect learning, skills intelligence, and performance in a single place, unlocking a workforce ready for change and innovation.”