Workplace Training Report 2025

Foreword:

As automation and generative AI accelerate change, the demand for human and technical skills is outpacing many organisations' ability to adapt. Flexible working, the drive for sustainability and rapid advances in AI and technology are transforming the workplace at a dizzying speed, leaving workers struggling to keep up. Although some people have a natural aptitude for change, today’s workforce is increasingly dissatisfied, anxious, and less productive.

While 67% of executives cite geopolitical instability as the greatest threat to growth, our evidence reveals real dangers lie closer to home: falling morale and low productivity, with failing morale and low productivity damaging many organisation's ability to succeed. 82% of HR leaders report their organisations are experiencing change fatigue, and 1 in 2 employees feel workplace anxiety at least once a week. This is a significant obstacle to growth. Without the skills and resilience needed to manage, organisations risk falling behind.

Executive summary:

AI represents a generation-defining opportunity to transform businesses and the economy, but can a workforce at tipping point unlock its potential?

Productivity crash imminent

The world in which AI is being introduced is already suffering significant change fatigue. Employees are burned out and anxious, with productivity issues limiting their ability to embrace new ways of working. Many organisations are pushing forward with AI strategies, but confidence in their readiness is low—only 44% of employees believe their organisation is prepared.

While 97% of HR leaders claim to provide AI training, only 39% of employees report receiving it. Leadership readiness remains inconsistent—70% of middle managers are using AI tools daily, but 52% of executives have never used them. The disconnect between leadership strategies and workforce experience continues to widen. At the same time, more than 80% of HR leaders report their organisations are experiencing change fatigue, and workplace anxiety is widespread, affecting one in two HR leaders and employees weekly. AI adoption risks widening existing skill and productivity gaps rather than solving them.

Training systems buffering

The task of readying the workforce to transform is further affected by a lack of leadership readiness and significant gaps in perception around skills training, particularly in data literacy, with 65% of employees receiving no data training in the past year, a gap that extends across all levels, including executives (72%) and unskilled workers (74%).

Despite these gaps, there are positive signs of organisational commitment to workforce development. Training budgets are increasing, with 77% of HR leaders planning to expand investment in skills training and nearly a third committing to increases of over 26%. AI and digital skills remain a priority, with 80% of HR leaders focusing on technical training and 74% prioritising human skills like leadership and adaptability. The Apprenticeship Levy is also being used more effectively, particularly for upskilling in technology (80%), data (79%), and leadership (70%).

However, without a cohesive, strategic approach, these investments risk remaining fragmented, failing to build the sustained capability and agility that businesses need to navigate AI-driven change. Embedding training within a broader workforce strategy that ensures accessibility, relevance, and long-term impact is essential to addressing the real barriers to readiness and transformation.

The way forward

To ensure AI adoption and workforce development are successful, organisations must act decisively in six key areas:

• Enhance AI leadership readiness: Upskill leaders in AI fundamentals and change skills to drive transformation and inspire trust.
• Close critical skills gaps: Prioritise training in technical, human, and data skills to build a future-ready workforce.
• Combat change fatigue: Equip employees and leaders with change management training to improve adaptability and reduce disruption.
• Embed well-being strategies: Scale mental health initiatives and management training to reduce workplace anxiety and improve morale.
• Leverage apprenticeships: Maximise the Apprenticeship Levy to develop critical skills in technology, data, and leadership.
• Boost productivity: Address workload imbalances, streamline processes, and empower managers to optimise team performance.

AI training is non-negotiable for competitiveness

Artificial intelligence (AI) is reshaping the workplace, offering organisations unprecedented opportunities to innovate and scale. Yet, a significant readiness gap threatens this potential. Across UK organisations, there is a disconnect between ambition and execution, with misalignments in leadership, workforce preparedness, and training access hindering progress.

97% of HR leaders claim to have provided AI training in the past year

39% of employees report receiving it

14% rate their instruction as highly effective

The gap is greatly pronounced in leadership readiness. Middle managers are emerging as key adopters of AI, with 71% integrating it into their daily workflows. In contrast, 52% of executives have never knowingly used AI tools, eroding confidence across teams.

Among younger employees, 74% use AI tools regularly, but just 52% have received formal training — and only 14% rate this training as highly effective. As a result, one-third of UK employees feel unprepared to adopt AI in the next 1–3 years. It is worth noting that only 55% of employees trust their managers to lead digital transformation effectively, and just 4 in 10 believe they can adopt AI tools themselves.

While HR leaders remain confident — 88% believe their management teams are ready to lead AI adoption — only 44% of employees agree their organisations are prepared. Among Gen Z and Millennial employees, optimism reaches 57%, but large portions of the workforce are left behind, exposing a need for tailored, targeted AI training, or risk stalling AI integration altogether.

McKinsey’s 2024 insights on generative AI adoption shed light on the broader opportunity—and challenge. Remarkably, 88% of employees using generative AI are in non-technical roles, highlighting its untapped potential beyond specialised teams. However, this also highlights a critical need for cross-departmental AI literacy, as only 12% of generative AI users occupy technical positions.

Organisations that embrace AI across all functions are 2.5 times more likely to prioritise reskilling and upskilling, capturing substantial cost efficiencies and revenue gains. Many organisations fail to utilise their in-house early-adapters who are forming AI-pockets within parts of the business.

Globally, organisations are accelerating AI adoption, with implementation in at least one business function rising from 50% to 72% in 2024 (McKinsey). For UK organisations, closing the readiness gap is an urgent priority. Over the next 12 months, investing in fundamental AI training, equipping leaders with AI capabilities, and ensuring equitable access to resources will be key. The stakes are high, but so is the potential.

Organisations that act decisively will future-proof their workforce, turn disruption into opportunity, and establish a competitive edge in an AI-driven workplace.

Unlocking potential through technical and human skills

To build a workforce that is both resilient and future-ready, organisations must prioritise two critical skill sets: human and technical skills.

Human skills — such as leadership, communication, adaptability, and problem-solving, to drive collaboration, strategic decision-making, and change management. Technical skills, including AI proficiency, data literacy, and digital tools, enable employees to leverage new technologies and optimise productivity.

While AI can generate insights, automate processes, and analyse data, human skills unlock its full potential. According to Microsoft's IDC Brief, 49% of experienced professionals rank problem-solving as their most important skill, followed by communication (45%) and data analysis (44%). These capabilities ensure AI is interpreted effectively, applied ethically, and used to drive business impact. Without investment in human skills, AI alone cannot deliver strategic success.

94% of HR leaders in large businesses say they have addressed human skills gaps, while 92% report focusing on technical and data skills.

Yet employee experiences paint a different picture.

Only 45% of employees have received training in human skills, with participation dropping to 27% for technical skills and 29% for data skills.

When it comes to data literacy, the disconnect is stark.

Two-thirds (65%) of employees have not received data skills training in the past year.

This gap is most pronounced at the extremes of the organisational hierarchy: 74% of unskilled workers and 72% of executives report no data skills training. The shortfall also affects middle management (57%), junior managers (63%), and skilled workers (64%). Without broad access to data skills training, organisations cannot fully realise the benefits of data-driven decision-making.

For HR leaders, closing skills gaps is the biggest priority to stay competitive in 2025. HR leaders advise the focus is technical skills (80%), human skills (74%), and data skills (66%)

This highlights the growing need for multi-skilled employees—individuals who can navigate complexity, adapt to change, and integrate human and technical skills to drive impact and meet the demands of an evolving workplace. The next 12 months will be pivotal in developing teams who can perform at critical intersections of business, where change and performance can be a catalyst for success.

The impact of effective training is undeniable: 75% of employees who receive training report positive career development outcomes. The challenge lies in ensuring that every level of the organisation is equipped with the right skills to remain competitive. Closing the alarming divide between strategy and execution calls for a targeted and strategic approach to drive performance and long-term success.

An anxious workforce needs more support

The modern workforce is under considerable strain. As organisations grapple with change, the toll on mental health is impossible to ignore.

For HR leaders, the pressures are evident: 1 in 5 experience workplace anxiety daily, and 1 in 2 feel it weekly.

Employees are similarly affected, with 51% reporting workplace anxiety at least once a week—a figure that climbs to 64% for younger workers aged 18–34.

The causes of workplace anxiety are clear:

• 54% heavy workloads and time pressures
• 26% poor work-life balance
• 26% lack of managerial support
• 84-90% identify mental health support as critical
• 4% considering mental health support unimportant

Employees are equally clear about the solutions:

84% identify mental health support as critical to their satisfaction and performance, a figure that rises to 90% among younger employees. Only 4% of employees dismiss mental health support as unimportant — a compelling case for embedding well-being into core business strategies.

Across the UK, 64% of HR leaders report implementing work-life balance policies and leadership training to reduce workplace anxiety.

Other measures include empowering peer support networks (52%), manager check-ins (52%), resilience programmes (49%), and goal-setting workshops (48%). These efforts are working: 9 in 10 HR leaders report these initiatives as effective, with leadership training (97%), goal setting (96%), and work-life balance policies (95%) delivering the greatest impact.

These efforts are working.

9 in 10 HR leaders report these initiatives as effective, with leadership training (97%), goal setting (96%), and work-life balance policies (95%) delivering the greatest impact.

Addressing anxiety is not just about reducing absenteeism or boosting morale; it is about safeguarding an organisation’s most valuable resource — its people. Leaders must act strategically and with empathy, embedding well-being into the heart of their business strategies. Those prioritising mental health today will empower an engaged and productive workforce.

Change fatigue is a significant problem

Change is a constant in the modern workplace, and for many, it has become exhausting.

80% of HR leaders say their organisations are experiencing change fatigue, with 14% calling it a major concern.

Employees feel the strain too: 62% report feeling fatigued by constant disruption, and 15% describe their fatigue as severe. Younger workers are particularly affected, with 67% of those aged 18–34 experiencing change fatigue, compared to 66% of those aged 35–54 and 52% of those over 55.

Despite the mounting toll, leadership responses are fragmented. In the past year, only 43% of employees received resilience training; of those, 34% described it as minimal. Worse still, 55% of employees report receiving no training at all. These gaps leave workers unprepared for disruption, heighten fatigue, and weaken morale.

This inconsistency is reflected in trust levels.

1. 92% of HR leaders express confidence in their workforce’s ability to handle disruption
2. 66% of employees trust their managers to do the same
3. 58% have faith in senior leadership

Organisations cannot afford to let change fatigue persist unchecked.

By equipping employees and leaders with resilience skills, targeting younger workers disproportionately affected by disruption, and improving leadership confidence through tailored change management training, businesses can begin to turn the tide. Without decisive action, the burden of constant change will continue to grow, undermining morale and productivity.

Productivity pitfalls must be addressed

A 2025 global survey by Gallup found that companies are 17% more productive and 21% more profitable when they offer training to employees. Despite efforts to boost efficiency, persistent barriers continue to undermine workplace productivity

Chief among these is workload imbalance, cited by 37% of employees as their biggest challenge. This issue disproportionately affects women, with 42% identifying it as a problem, compared to 33% of men, revealing perceived inequities in task distribution.

Other significant productivity blockers include:

1. 31% lack of resources
2. 30% poor management
3. 29% meeting overload
4. 24% distractions
5. 23% personal well-being
6. 22% procrastination

Managers have a crucial role to play, but their impact varies widely. While 50% of employees report that their manager positively affects their productivity, the remaining data is sobering: 18% say their manager negatively impacts their performance, and 26% report no impact at all.

These figures highlight the challenges faced by managers, often dubbed 'accidental managers'—82% who step into management roles without any formal leadership training, according to CMI. This lack of preparation, combined with the growing squeeze of competing demands, leaves managers ill-equipped to build and sustain high-performing teams. Without targeted organisational support, these missed opportunities weaken engagement, diminish team performance, and erode organisational resilience.

To overcome these barriers, organisations must rethink task distribution, reduce unnecessary meetings, and provide managers with the tools and training they need to inspire their teams. Empowering managers to tackle these challenges can unlock hidden potential and boost productivity.

Apprenticeships and policy reforms offer new opportunities

The Apprenticeship Levy has been instrumental in shaping skills development across the UK, equipping businesses with critical capabilities in high-demand sectors. As organisations grapple with widening skills gaps and rapid workforce transformations, the need for resilience has never been greater. The promised reforms of the Growth and Skills Levy are becoming increasingly urgent to ensure the UK workforce can keep pace with the demands of the market.

The Levy’s impact is undeniable in areas like technology (80%), data (79%), and leadership (78%), where HR leaders report using it to address critical workforce needs.

Degree-level apprenticeships are emerging as a vital tool in the talent strategy of UK businesses.

88% of HR leaders use apprenticeships to develop early career professionals.

While 44% use it as a key attraction strategy for new talent.

Our research shows HR leaders are vocal in their calls for reform, advocating for:

• 85% supporting funds for skills development in underserved regions
• 82% calling for the inclusion of non-apprenticeship training, such as short courses
• 82% urging increased support for critical sectors like digital, green jobs, and healthcare
• 82% seeking guaranteed placements for apprentices to ensure workforce readiness
• 81% advocating for longer, more robust apprenticeships to raise standards and improve outcomes

While 66% of HR leaders express optimism about upcoming reforms, concerns remain. A third is "very optimistic," but 23% doubt whether reforms will deliver on their promise, and 9% question their scalability.

As businesses await clarity on the Levy’s future, scepticism is growing about the speed and effectiveness of reforms. A lack of timely decisions risks undermining UK corporates’ ability to plan, invest, and address urgent workforce challenges.

We recognise the transformative potential of bold reforms. As reform discussions progress, Corndel will continue to provide guidance and strategic support to organisations eager to deliver high-impact training solutions.

Training and development are key to retention

Forward-thinking organisations increasingly recognise the value of training for both retention and performance. 77% plan to expand their training budgets in 2025, with 28% committing to increases of over 26%. This builds on the 2024 momentum, where 62% of organisations planned to increase training budgets, a sharp reversal from 2023, when 48% of HR leaders anticipated budget cuts. By contrast, only 5% of HR leaders expect to cut their training budgets, underlining workforce development as a key business priority.

The return on investment (ROI) is equally compelling.

• 61% of HR leaders report strong ROI from corporate training
• 21% describing this ROI as very strong

These outcomes highlight training’s crucial role in tackling talent retention and organisational effectiveness. Reskilling and upskilling are central to these efforts.

For 64% of employees, access to reskilling opportunities is a key factor in deciding whether to stay with their employer. This aligns closely with the views of 76% of HR leaders, who identify reskilling as vital to their long-term retention strategies. Employees’ expectations further reinforce this point: 6 in 10 employees expect development opportunities in the workplace, and three-quarters (75%) value flexibility in their roles as part of their overall satisfaction.

Training also delivers significant performance benefits. More than half (56%) of employees report that workplace training has directly improved their productivity, with female employees seeing the greatest impact (61% compared to 52% of male employees). These outcomes highlight training’s dual role as a retention tool and a performance enhancer.

Communication gaps in Equality, diversity, and inclusion require action

Despite widespread recognition of its importance and impact, equality, diversity, and inclusion (EDI) remain areas where organisations are falling short. Gartner’s 2024 research found that companies with diverse workforces experience a 12% improvement in performance and a 20% higher intent to stay among employees, directly linking diversity to both business success and retention.

PwC’s 2024 Global DEI Survey further reinforces this, showing that investing in diversity and inclusion leads to a 6.8% increase in stock price, while employees who feel undervalued are three times more likely to leave.

Over a fifth (22%) of employees are unaware of any EDI training initiatives within their organisation, while 2 in 5 employees report never having participated in related sessions.

Without broad engagement, EDI efforts risk becoming ineffectual, particularly as inclusion becomes a fundamental expectation in modern workplaces.

Progress is mixed.

While 69% of HR leaders report implementing EDI training beyond mandatory compliance, only 48% include it as a core component of their strategy.

Another 21% limit their efforts to specific areas, and 24% have yet to act, leaving EDI initiatives fragmented and unable to drive meaningful cultural change.

Leadership representation also falls short.

On average, 37% of senior leadership teams include individuals from underrepresented groups such as women, neurodiverse individuals, and ethnic minorities. Though 20% of HR leaders report achieving higher representation (51% to 75%), this remains the exception, reflecting how far many organisations still must go in achieving genuinely inclusive leadership.

The challenge is compounded by a lack of unified advocacy at the top. 76% of employees believe senior leaders should champion EDI efforts, and worryingly, nearly a quarter (21%) do not see this as important. Without visible and consistent leadership support, EDI initiatives risk being deprioritised, further eroding trust and credibility within the organisation.

Organisations need to manage multigenerational expectations

For the first time, workplaces span five generations, from Gen Z to the Silent Generation. The number of payrolled employees aged 65+ rose by 6.3% between May 2023 and May 2024, reaching 1.2 million — the highest recorded level (Gov.UK). This reflects a broader pattern of experienced workers staying in or re-entering the workforce, challenging organisations to address long-standing biases.

75% of HR leaders actively promote intergenerational teamwork

96% agree that it is crucial for organisational success.

By combining older employees' institutional knowledge with younger colleagues' fresh perspectives, multigenerational teams can become a powerful competitive advantage.

Age-related discrimination remains a significant barrier. AARP’s 2024 research found that 6 in 10 workers aged 50+ face age-related prejudice, with women facing the most significant challenges.

Three-quarters of women have encountered age-based discrimination during their careers, with incidents peaking in early and later career stages (Women of Influence, 2024). In UK fund management, for example, women aged 50–64 account for just 8% of employees, despite making up 41% of the broader workforce. These inequities demand urgent, targeted interventions to create equitable opportunities for experienced workers.

At the same time, younger generations bring their own complexities.

Millennials, Gen Z, and Gen X increasingly expect workplace mental health support:

• 94% Millennials
• 92% Gen X
• 90% Gen Z
• 84% Baby Boomers

Similarly, professional development expectations reveal sharp generational divides.

HR leaders report rising demands from Gen Z (75%) and Millennials (75%) for growth opportunities, far surpassing those of Gen X (59%), Baby Boomers (47%), and the Silent Generation (51%). Addressing these priorities is vital to retaining younger talent while maintaining engagement among older employees.

To navigate this complexity and secure long-term success, organisations must focus on six critical areas:

• Close critical skills gaps: Prioritise training in technical, human, and data skills to build a future-ready workforce.
• Enhance AI leadership readiness: Upskill leaders in AI fundamentals and change skills to drive transformation and inspire trust.
• Embed well-being strategies: Scale mental health initiatives and management training to reduce workplace anxiety and improve morale.
• Champion diversity and inclusion: Elevate EDI efforts by increasing leadership buy-in and representation to drive internal engagement.
• Combat change fatigue: Equip employees and leaders with change management training to improve adaptability and reduce disruption.
• Leverage apprenticeships: Maximise the Apprenticeship Levy to develop critical skills in technology, data, and leadership.
• Boost productivity: Address workload imbalances, streamline processes, and empower managers to optimise team performance.
• Foster generational collaboration: Bridge generational divides through targeted development programs and inclusive teamwork initiatives.