Employee mindset

As businesses navigate rapid technological advancements, organizations are facing significant skill gaps within their workforces. Recent studies show that addressing these gaps requires not only technical training but also a strategic focus on cultivating the right mindset within employees:

• A 2024 survey by the Association for Talent Development (ATD) found that 74% of talent development professionals reported existing skill gaps in their organizations, with 75% anticipating future skill shortages.
• Springboard’s 2024 report revealed that 70% of corporate leaders acknowledged a critical skills gap negatively impacting their business performance.
• The Society for Human Resource Management (SHRM) reported in 2024 that over 77% of organizations faced recruitment challenges, often due to skill shortages.
• A TalentLMS report highlights that 88% of executives consider a growth mindset essential for organizational success, and 52% of employees would leave their current job for one that offers more learning opportunities.

These statistics underscore the importance of integrating growth mindset development with technical training initiatives. A workforce equipped with a growth mindset is not only more open to upskilling and reskilling but also better positioned to drive innovation and resilience in an evolving business environment.

What are reskilling and upskilling?

Reskilling and upskilling are two pillars of workforce development:

• Upskilling focuses on enhancing employees’ current skills to meet evolving job requirements, particularly with the integration of advanced technologies like AI.
• Reskilling trains employees to transition into entirely new roles, helping organizations adapt to emerging job functions driven by innovation and market shifts.

As artificial intelligence (AI) and automation transform industries, employees must develop complementary skills in problem-solving, creativity, and human-AI collaboration.

Leading companies driving workforce development

1. Amazon

Through its "Upskilling 2025" initiative, Amazon has committed over $1.2 billion to train 300,000 employees by 2025. Programs focus on roles in cloud computing, cybersecurity, and machine learning.

2. PricewaterhouseCoopers (PwC)

PwC is investing $3 billion globally to upskill its 275,000 employees in AI-driven tools, data analytics, and other digital capabilities essential for a tech-driven economy.

3. AT&T

AT&T’s Workforce 2020 program includes over $1 billion in funding for STEM training, equipping employees with the skills to thrive in a world increasingly influenced by AI.

4. JPMorgan Chase

With a $600 million investment in reskilling programs, JPMorgan Chase is helping employees prepare for tech-centered roles while addressing systemic barriers to career advancement.

The benefits of reskilling and upskilling

Implementing robust skills training programs brings substantial organizational and employee benefits, including:

• Cost savings: Filling new roles internally reduces recruitment and onboarding expenses.
• Talent attraction: Development opportunities make organizations more attractive to top candidates.
• Improved retention: Employees who feel valued are more likely to stay long-term.
• Enhanced morale: Training initiatives foster confidence and engagement.
• Customer satisfaction: A skilled workforce improves service and brand loyalty.
• Increased innovation: Training fuels creativity and leadership.
• Revenue growth: A more proficient workforce contributes directly to higher productivity and profits.
• AI integration: Employees with AI knowledge can work effectively alongside new technologies, ensuring smooth adoption.

The importance of a growth mindset

Even with cutting-edge training programs, their success depends on employees’ attitudes toward learning. A growth mindset, characterized by the belief that abilities can be developed through dedication and hard work, ensures that employees embrace change and innovation.

Employees with a growth mindset are:

• 34% more likely to feel committed to their organization.
• 47% more likely to trust their colleagues.
• 49% more likely to see their organization as innovative.

Additionally, 90% of senior leaders believe leading by example is critical in fostering this mindset. Employees who see leadership embracing learning are more likely to adopt similar attitudes, creating a culture of continuous improvement.

How to promote a growth mindset

Defining success

Promote a growth mindset in your workplace by reinventing your definition of success. Success based purely on results (numbers) gives an incentive to lie, blame, and fear failure. This creates a negative environment with a high burnout rate. Success based on growth promotes a collaborative and innovative environment with a higher standard of ethics. Employees in this environment are more likely to seek opportunities and handle setbacks efficiently.

Learning goals

If success is based on learning, there must be learning goals. Goals in the workplace are often based on performance and, again, numbers. Failure to perform as expected hinders progress. Goals that are based on learning prompt team members to face challenges, experiment, put in genuine effort, and achieve improvement.

Positive feedback

Criticism is essential for building successful teams, but criticism should always be constructive. Giving positive feedback that highlights not only the abilities and performance but the effort and dedication of the employee will stimulate a passion for learning and promote professional development. It also helps maintain an open line of communication through which you can identify problems and implement solutions faster.

The grief/change curve

Preliminary training for a growth mindset makes your workforce more open to training, thereby making training more effective, but it also builds the resilience and emotional control of your workforce during transitions that may cause fear and a sense of loss. By supporting them through the process outlined below, you can improve overall profits and the value of your company in the long run. This will require you to show empathy and anticipate subtle emotional reactions. Start by listening and work towards discussion and training. The journey through the Change Curve is not always linear or predictable, so meet with your employees to gauge how people are feeling individually.

Denial

Employees are looking for evidence that changes are happening, or they may be dismissive of the information. Introduce changes in a structured and incremental manner. Keep communication lines open and welcome feedback.

Anger

Employees recognize the change but do not want it. There may be a fear of how the change will affect them personally. Identify team members who are becoming angry about changes. Continue open communication. Listen to concerns and be supportive.

Bargaining

During communications, employees may attempt to alter the plan by providing bad feedback or arguing the necessity. Remain firm and reiterate why the changes are necessary. Use case studies and simulations to demonstrate the value of the changes. Acknowledge any useful feedback and continue open, supportive communication.

Depression

You might notice a drop in productivity or a low energy/low mood atmosphere. Minimize any friction around changes being implemented. Make the process rewarding for the team by celebrating effort. Pair struggling team members with mentors who can help guide them through the changes. Continue support and communication.

Acceptance

Employees will begin to engage in the new practices and become eager to learn. Positivity will return to the workplace as the changes are implemented. Continue celebrating effort and acceptance. Reward team members who show initiative. Remember to lead by example.

Summary

As technology, particularly AI, reshapes industries, reskilling and upskilling are no longer optional—they are essential. Organizations that prepare their workforce with the right mindset and training can unlock untapped potential, drive innovation, and remain competitive in a rapidly evolving market. By fostering a growth mindset, supporting emotional transitions, and leveraging the power of AI, businesses can equip their employees for the future while achieving lasting success.