Upskilling initiatives key to Australian business success

A new study by Udemy highlights the strategic role of human resources (HR) and learning and development (L&D) departments in addressing employee disengagement and adapting to economic changes in Australia through upskilling initiatives.

Findings from "Board-Proofing Learning Programs: How to Speak Business and Deliver Outcomes" underline the strategic importance of aligning upskilling programmes with business goals. By prioritising employee engagement and aligning development strategies with business imperatives, Australian HR leaders are at the forefront of utilising skills development as a tool for transformation.

Peter Kokkinos, Managing Director of Udemy APAC, stated, "Skills are the new currency of competitiveness, and Australian leaders who embrace this will be well-positioned to thrive. It's clear that a skills-based learning approach is essential for aligning development strategies with key business priorities. Personalised, flexible learning experiences are becoming a cornerstone for driving these goals forward. Australian organisations that embed skills development into business strategy are seeing clear gains in productivity, retention, and resilience."

The data illustrates that 65% of Australian L&D professionals see increasing productivity as a key priority, while 60% point to enhancing employee engagement as crucial. These numbers underscore the recognition of skills gaps as a significant barrier to business transformation, as noted by the World Economic Forum, which states that 63% of employers view it as such.

A considerable number of Australian organisations, 65%, have integrated their learning strategies with business goals, suggesting an advanced position compared to their UK and US counterparts. Despite strong integration, only 28% of L&D professionals report a strong link between their strategies and business outcomes, indicating room for further alignment to maximise impact.

Globally, 78% of respondents prioritise employee engagement, expressing a need for innovative methods to boost workforce motivation. In Australia, 36% cite lack of time as the primary obstacle to employee development. Aligning skills development with business strategy can deliver advantages, demonstrated by 66% of global leaders who say it enhances engagement and internal mobility.

A shift towards skills-based, rather than generic training, is notable among Australian L&D professionals, with 42% adopting such models. In addition, 64% are setting clear development goals, and 48% are designing learning experiences to be inclusive and accessible.

The emphasis on personalisation and flexibility is reflected in the 52% of Australian L&D leaders prioritising these learning experiences. Nevertheless, 25% also identify this as a challenge. Preference for micro-learning and collaborative learning, each used by 36% of professionals, is rising.

Tools like skill assessments and interactive feedback, used by 50% and 46% of organisations respectively, aid in personalising learning journeys and enhancing employee progress tracking—a critical element for maintaining engagement.

The role of artificial intelligence (AI) in learning is gradually increasing. Globally, 84% of HR and L&D professionals acknowledge AI's capacity to enhance engagement and productivity. However, in Australia, AI adoption remains low, with current usage at 22%. Concerns about privacy and data security exist, as 41% of Australian respondents express apprehension. Despite these concerns, 71% plan to adopt AI tools in the future.

Kokkinos remarked, "AI can help scale personalisation and engagement, but Australian employees need to trust the tools. Time constraints and concerns over data security highlight the need for streamlined, accessible, and secure learning solutions that empower both learners and businesses. Building that trust through transparency and ethical use is essential to unlocking AI's full learning potential."

Australian leaders are shown to focus on productivity and engagement within the global context, differing from their counterparts in the US and India, who prioritise business continuity, and in the UK, where the focus is on employee experience.