L&D Market Signals

Skills shortages are being treated as a training problem before the work problem is clear

Centranum's new employer data points to a familiar risk: leaders may fund upskilling and hiring before they know whether the constraint sits in skills, work design, or decision rights.

Ravinder Tulsiani, DBAEmerging signal

Centranum reports that 63% of employers identify skills gaps as a major barrier to business transformation. It also says 85% plan to prioritize workforce upskilling and 70% expect to hire staff with new skills. Those numbers make capability supply an executive issue. They do not show that training or hiring is the main fix.

I would start somewhere else. Show me the transformation priority or business process that is missing its target, then show me where performance is breaking in the chain. Only after that would I separate a true skill deficit from constraints in tools, workload, approvals, manager support, or role design.

That is the gap in this data. Employers are getting ready to increase supply before they have shown where the work is failing. When upskilling and hiring both rise, the first question is not how much to invest. It is what work is blocked and why.

The diagnosis changes the economics. A large upskilling push can create more learning activity while time to proficiency stays slow because the work system has not changed. Hiring can fail for the same reason. If people with new skills enter roles built on outdated assumptions about who does what, the business pays for capability it still cannot use well.

Centranum gives us employer intent and concern, not proof that these plans will improve performance. We still do not know whether upskilling closes these gaps in a lasting way. The data also does not show which skills are scarce, whether the shortages persist, or whether the harder problem is using capability well once it exists.

Before a CHRO, business leader, or capability leader funds a large response, the team should be able to show where the constraint sits and what evidence would prove that it moved. If that evidence is weak, I would look for the minimum intervention first rather than defaulting to a broad upskilling push or more hiring.

The signal I’m watching

Whether employers start publishing clearer evidence that skills shortage programs are tied to specific business processes, role families, and time to proficiency outcomes rather than broad learning or hiring commitments.

What would strengthen this signal

Comparable data showing that organizations with stronger capability intelligence and tighter performance diagnosis get better transformation results from upskilling and targeted hiring than organizations that respond with volume alone.

Sources