UK employers have ranked reskilling and upskilling as their top human resources priority for 2025, as workforce challenges deepen across sectors and the pace of technological change accelerates.
According to a new survey by HR and payroll provider SD Worx, UK organisations are increasingly focused on developing internal talent rather than relying on external recruitment to fill emerging skills gaps. The research — which surveyed over 5,000 businesses across Europe — highlights that 46% of UK companies identify reskilling as their number one HR concern.
The shift reflects growing recognition that talent shortages, automation, and changing job requirements are converging to reshape labour market needs. Employers are particularly focused on equipping staff with digital and analytical skills, as well as improving leadership capabilities and adaptability to new technologies.
“With the world of work evolving at an unprecedented pace, businesses can no longer afford to view learning and development as optional,” said Brenda Morris, UK Country Lead at SD Worx. “Reskilling is now critical to maintaining competitiveness, employee engagement, and long-term growth.”
The survey also found that flexible work arrangements and employee wellbeing remain key areas of investment, but reskilling is increasingly seen as the linchpin of successful HR strategies in the post-pandemic, AI-driven economy.
As UK firms grapple with economic uncertainty, workforce development is emerging as both a challenge and an opportunity — one that may define the resilience of British business in the years ahead.
