Talent in Transition: Research Reveals the Need to Reskill

10 July 2025 – As artificial intelligence (AI) and automation continue to reshape the world of work, Australian organisations are being urged to treat skills development as a strategic imperative, not just a nice-to-have employee benefit.

Findings from ELMO Software’s latest Employee Sentiment Index reveal 44% of employees rank professional development as a top workplace priority, ahead of health insurance (42%) and additional leave (37%). At the same time, nearly one in three (32%) HR professionals say they’re concerned their own roles could be replaced by automation or AI within five years, demonstrating the need for organisations to invest in upskilling and reskilling initiatives. 

A Shift in Workforce Strategy

Industries across the board – from healthcare (31%) to manufacturing (29%) and education (28%) to construction (24%) – report they’re struggling to keep up with the pace of change when it comes to upskilling and reskilling. Some are now rethinking their workforce strategies, placing more emphasis on internal mobility, leadership development, and learning investment over external hiring.

“Organisations can’t rely on outdated structures or one-off training anymore,” said Kate Wilkinson, Chief People Officer at ELMO Software. “We’re seeing a real shift towards agile workforce design, making it easier for people to move between roles, develop new capabilities, and respond quickly to business needs. It’s about creating a culture where learning is embedded, not bolted on.”

Quantifying the Payoff

A commissioned Total Economic Impact™ study by Forrester Consulting, released this month, reinforces the value of this shift. The study found that organisations using ELMO’s learning technology achieved $772,000 in productivity gains over three years, with the majority of savings coming from faster course development and rollout.

In total, 23,700 hours were reclaimed annually from higher-value work, including 14,790 hours saved on training completion alone, freeing HR teams and employees to focus on more strategic and impactful work.

“Streamlining training delivery doesn’t just save time; it opens up headspace to invest in people in more meaningful ways,” said Wilkinson. “Whether that’s mentoring, rotation programs, or internal secondments, those are the things that build real capability and engagement.”

Skills Disruption Is Already Here

The urgency to act is echoed by global research. The World Economic Forum’s Future of Jobs Report 2025 forecasts 39% of workers’ core skills will change by 2030, with employers identifying analytical thinking, resilience, flexibility and agility as the most important capabilities for the future. Meanwhile, 170 million jobs are expected to be created and 92 million displaced, highlighting just how dynamic, and high-stakes, the labour market is becoming.

“These shifts are happening in front of our very eyes,” said Wilkinson. “AI is opening up some incredible opportunities, but only if people have the skills and confidence to use it well. I believe the organisations investing in modern, relevant learning programs that not only help people keep pace, but also use AI thoughtfully, creatively, and with intent, will gain the most value.”

Training Investment Still Has Room to Grow

While more than half of Australian businesses say they plan to increase their learning and development budgets in the year ahead, ELMO’s 2025 HR Industry Benchmark Report shows the average spend per employee remains just over $2,000, unchanged from 2024. Larger organisations are leading the way, with employers of 2,000+ people spending an average of $2,499 per person, compared to $1,777 for smaller businesses.

With limited budget growth, many organisations are looking to do more with less, turning to scalable, cost-effective learning management systems (LMS) to streamline delivery, improve compliance, and tailor training to specific business needs. One HR executive from the healthcare sector shared the impact of a more integrated, technology-led approach using ELMO’s platform:

“We were able to demonstrate the compliance of our staff qualifications remotely –  using data extracted from our LMS – rather than having to travel to the audited site and manually present documentation. It saved us time and stress, and allowed our team to focus on patients, not paperwork.”

Skills gaps are widening, budgets are tight, and the pace of change isn’t slowing. As employees seek out meaningful development opportunities, and AI continues to reshape how work gets done, organisations that take a smarter, more structured approach to learning will be best placed to adapt, retain talent, and grow.

-ENDS-

ABOUT ELMO SOFTWARE

Founded in 2002, the ELMO Group comprises ELMO Software in Australia, New Zealand and the UK, and Breathe HR in the UK. It is the trusted provider of HR technology solutions for over 18,000 customers across Australia, New Zealand and the UK.