A significant shift is occurring in how Australian businesses view their most valuable asset. The conversation in boardrooms across the country has evolved over the last five years. Discussions are moving away from solely focusing on recruitment budgets and hiring pipelines. Instead, forward-thinking leaders are asking a crucial question: how do we upskill workforce to grow the talent we already have?
The data supports this change in perspective. Approximately 35 per cent of Australian businesses plan to invest in workforce upskilling initiatives during 2025–26. With employment projected to grow by 961,000 people over the next five years and 139 occupations facing ongoing shortages since 2021, the strategy is clear. Developing your existing team is no longer an optional benefit. It is a fundamental strategy for survival and growth in a competitive market.
For managers, this presents both a challenge and an opportunity. This article will guide you through the trend towards workforce upskilling and how your organisation can benefit.
Why the Shift to Upskill Workforce is Happening
Several key factors are driving the urgency to upskill workforce capabilities. These range from immediate financial returns to long-term strategic viability.
The Financial Return on Investment
Financial viability is often the primary driver for leadership teams. The return on investment for workforce training is compelling. When companies invest a dollar in programs to upskill workforce, they see an average return of $4.70 in revenue per employee within the same financial year. This immediate return validates the decision to allocate budget towards professional development. Programs to develop your workforce transform training from a cost centre into a revenue generator.
Addressing the Growing Skills Gap with Upskill Workforce Strategies
The gap between current employee skills and future business needs is widening. The World Economic Forum reports that while half of all workers globally have completed some form of training, employers expect 39 per cent of workers’ core skills to change by 2030.
Australia has faced challenges in this area for years. Training outcomes have not always aligned with business requirements, impacting productivity. By making upskill workforce strategies a priority, organisations can ensure their teams possess the essential capabilities needed for future success.
Improving Retention and Embracing Technological Change
Retention is a critical concern for P&C Managers. Seventy-six per cent of employees state they are more likely to stay with a company that offers ongoing upskill workforce opportunities. Replacing an employee involves significant costs, including recruitment fees and lost productivity. Investing in staff development programs is a proven way to retain high-performing team members.
Technology advancement also makes these initiatives essential. Artificial Intelligence (AI) is expected to create nearly 200,000 jobs by 2030 across various sectors. Companies that upskill workforce now are preparing their people to work with new technology tools, rather than be replaced by them.
What Companies are Doing to Upskill Workforce
The landscape of corporate training has changed dramatically to accommodate modern workstyles and needs.
The Rise of Flexible Learning Models
The preference for flexible workforce learning options has exploded. In 2016-17, only 19 per cent of training occurred online. By 2020-21, that figure jumped to 55 per cent. Employees value the ability to fit training and development programs around their responsibilities instead of attending lengthy classroom sessions.
Significant Market Investment in Workforce Programs
The scale of investment reflects the priority businesses place on workforce development. Australian businesses were expected to spend approximately USD $8 billion on employee learning and upskill workforce programs in 2024. Furthermore, the corporate leadership training market is set to nearly double from $1.56 billion in 2025 to almost $3 billion by 2032.
Strategic Focus Areas for Developing your Workforce
Organisations are targeting key skills to drive growth. Digital literacy is paramount, with high demand for specialists in cybersecurity and data analytics. Other sectors are ensuring their training addresses new trends—for example, manufacturing companies now focus on Industry 4.0 technologies, while mining operations are upskilling people in autonomous systems.
Innovative Delivery Methods for Upskilling Workforce
How employers deliver workforce programs has become more creative and practical. Beyond standard online courses, companies are now implementing:
- Mentorship programs
- Job rotation schemes
- Bite-sized micro-learning modules
- Internal coaching sessions
Many organisations partner with education institutions to develop programs tailored to business needs. This ensures that skills can be applied immediately in daily work.
Partnering for Customised Workforce Solutions
Upskilling your workforce is no longer optional. Across Australia, organisations are responding to skills shortages, technological change, and retention challenges by investing in targeted development programs. With the right strategy and support, these initiatives deliver measurable benefits, including stronger performance, higher retention, and improved return on investment.
At Healthcare Australia, we understand the unique needs of the healthcare and support sectors. We work with organisations of all sizes to design customised solutions that address specific skill gaps and long-term capability needs. Through industry partnerships and access to relevant funding pathways, we help make workforce development practical and achievable.
For managers, the opportunity is clear. Prioritising upskilling programs today positions your organisation to adapt, grow, and remain competitive tomorrow. To learn more about how we can support your goals, see our available training and education opportunities, or speak with our team about building a confident, capable, and future-ready workforce.
