Breaking the barriers: Why coaching and upskilling are vital to workforce development

In a time of rapid technological change and shifting workforce expectations, organisations are under pressure to rethink how they support employee development. Yet, according to Gallup’s latest research, many are falling short. In 2024, fewer than half of U.S. employees participated in any training or education for their current role, and only a third of those hoping to move into a new position felt confident they had the skills to excel.

The biggest obstacle? Time. Gallup found that 89% of CHROs, 41% of employees and 37% of managers cited time away from job responsibilities as the primary barrier to learning and development.

But time isn’t the only issue. A lack of supervisor support and limited access to meaningful learning opportunities are even stronger predictors of employee turnover. When managers aren’t equipped to nurture growth, they risk becoming blockers rather than enablers.

This is where coaching and upskilling come into play - not as isolated initiatives, but as strategic levers for retention, performance and adaptability.

Coaching: the catalyst for growth

Managers play a pivotal role in shaping the employee experience. Yet Gallup’s data shows that fewer than half of managers worldwide have received formal training. Without the skills to lead effectively, they struggle to support their teams - and disengagement follows.

At AoEC, coaching is seen as a cornerstone of organisational resilience. Karen Smart, head of consultancy, explains: “Investing in coaching skills isn’t just about improving performance. It’s about creating a culture where people feel valued, supported and empowered to grow. That’s what drives retention and competitive advantage.”

Coaching equips managers with the tools to listen, challenge and guide - fostering trust and accountability across teams. When embedded into daily operations, it transforms the way organisations lead and learn.

Upskilling: a strategic response to talent shortages

With numerous reports of employers struggling to find qualified talent, the focus is shifting from external recruitment to internal development. Upskilling existing staff not only strengthens capability but also boosts morale, encourages innovation and reduces turnover.

Workforce development programmes are proving effective in bridging the skills gap. Data from the National Bureau of Economic Research shows that training grants - often delivered through public-private partnerships - help companies scale and expand opportunities for less skilled workers. Organisations that received grants experienced longer-term employment growth and were able to reduce education and experience requirements for new roles.

Notably, many training plans targeted leadership and process management skills, enabling firms to recruit for lower-skilled roles post-training. Others focused on production-related skills, helping employees adapt to automation and avoid redundancy. These programmes are resolving skill shortages that previously blocked growth and investment.

Learning as a business imperative

Upskilling is no longer the sole responsibility of L&D teams. According to insights from the Brandon Hall Group, 75% of organisations are prioritising alignment between learning and business goals, and development is now recognised as a strategic driver of performance.

Forward-thinking organisations are leveraging AI to identify skill gaps, personalise learning pathways and verify skill acquisition through simulations. This shift enables more responsive and efficient development, tailored to both individual and organisational needs.

Microlearning and immersive technologies like AR/VR are also gaining traction, offering bite-sized, experiential learning that fits into employees’ workflows. Meanwhile, 43% of organisations are empowering employees to take ownership of their career development - a move away from rigid, top-down training models.

Balancing technical and human capabilities

As automation reshapes job roles, the most valuable employees are those with hybrid skill sets - combining technical proficiency with human capabilities such as emotional intelligence, adaptability and collaboration. Upskilling programmes must develop both dimensions to prepare employees for evolving roles and ensure long-term resilience.

Karen Smart adds: “Coaching helps people build the human skills that technology can’t replicate. When paired with technical training, it creates a workforce that’s not just capable, but confident and future ready.”

Conclusion: build a culture that learns to lead

To thrive in an unpredictable landscape, organisations must move beyond transactional training and invest in coaching and upskilling as core capabilities. By aligning development with strategic goals, embracing emerging technologies and fostering a culture of continuous learning, they can unlock the full potential of their people - and secure a lasting competitive edge.