Workers Want Training but Employers Don’t Always Deliver. Can Policy Help?

Why It Matters

When firms invest in training, productivity rises and employee turnover falls, making policy‑driven contract stability a lever for competitive advantage and inclusive skill growth.

Key Takeaways

• Workers view skill development as higher priority than employers
• Training access gaps widen between degree‑holders and non‑degree workers
• Spain’s 2022 reform boosted permanent contracts and firm training
• Permanent hiring incentives raise firms’ returns on training investments
• Policy reducing temporary contracts can improve workforce skill levels

Pulse Analysis

The global talent landscape is increasingly defined by a mismatch between employee aspirations and employer actions. Indeed’s Hiring Lab surveyed over 80,000 respondents in the United States, United Kingdom, Germany, France, Canada, Australia, Ireland and Japan, revealing that 67% of U.S. workers rank skill development as a top personal goal, yet only 48% believe their firms share that focus. Similar gaps appear across all eight markets, underscoring a pervasive perception that employers under‑invest in learning despite rapid technological change and the rise of AI.

Beyond perception, the data expose a stark education divide. In Ireland, 86% of bachelor‑degree holders report receiving employer‑provided training compared with 78% of those without a degree; the disparity widens to 21 percentage points in Australia and France. This uneven distribution risks entrenching existing labor‑market inequalities, as higher‑qualified workers reap additional upskilling while those who could benefit most remain stagnant. Firms that neglect broader training programs may also miss out on productivity gains and face higher turnover when employees seek growth elsewhere.

Spain’s 2022 labor‑market reform offers a concrete policy lesson. By sharply restricting temporary contracts, the reform shifted hiring toward permanent positions, prompting firms to increase training mentions in job postings—especially in occupations previously dominated by short‑term work. By 2024, training rates in those sectors matched those of more stable occupations, eliminating the pre‑reform gap. The Spanish case demonstrates that reducing contract precarity can realign employer incentives, fostering a more skilled and resilient workforce—a crucial advantage as economies grapple with digital transformation and skill shortages. Policymakers across Europe should consider similar reforms to stimulate firm‑provided training and narrow skill disparities.