A new study by Amazon finds that almost three-quarters of Millennial and Gen Z workers are planning to quit their jobs in 2023 due to a lack of skills-building opportunities.
Employees want meaningful skill development at work—and they'll leave to find it
“Can I really advance my skills and career here?”
How an employee answers this question is a huge factor in whether they quit or stay, according to a study released today by Amazon and Workplace Intelligence.
The pandemic changed everything, and now a struggling economy promises to shake things up even more. What’s evident today is that amid all these changes, a growing number of U.S. workers are concerned about staying competitive. The study, which surveyed 3,000 workers from a wide swathe of industries, found that:
- 78% fear they lack skills to advance their career
- 71% are concerned they lack education to advance their career
- 58% are worried their skills are already outdated
- 70% feel unprepared for the future of work
These widespread fears are spurring employees to take the wheel of their own career growth. Looking to 2023, 89% feel extremely to somewhat motivated to improve their skills, with 76% crediting the pandemic for their increased motivation. Skill development is a top priority for 83% of employees, and 88% have already taken steps to enhance what they can deliver at work.
A reason to leave
Workers are taking their perceived lack of skills so seriously that many will consider quitting their current positions for an offer elsewhere with better opportunities to upskill and move to a different role.
Around 2 out of 3 employees said it’s ‘extremely’ or ‘somewhat’ likely they’ll leave their employer within the next year, and the reasons are all about growth opportunities—and the lack thereof.
- 64% plan to quit because there aren’t enough opportunities for skills development
- 66% plan to quit due to lack of career advancement opportunities
- 65% want to leave because they see no way to transition to a new role or career path
These numbers leap higher for Gen Z and Millennial employees, 74% of whom cite a lack of career mobility and skills development options as the impetus for their plans to resign within the coming year.
In the release, Workplace Intelligence Managing Partner Dan Schawbel notes the challenge for employers. "In today’s employee-driven job market, employees feel empowered to seek out an employer that truly supports their long-term career goals and ambitions,” he said. "Companies who recognize this and provide a high level of support—from more time for skills development during the workday, to better learning benefits and programs—are going to stay one step ahead in the ongoing war for talent.”
Amazon is one company that is taking the challenge seriously, with a $1.2 billion investment in its Upskilling 2025 pledge. Launched last year, this skills training program is designed to give 300,000 employees access to education and skills training programs, including college tuition. Career mobility is another priority for the company, which offers opportunities for corporate and operations employees to transition into higher-paying technical and non-technical jobs within Amazon—or even elsewhere.
“The past few years have shown that skills development, career advancement and professional mobility are no longer nice-to-haves but are the key to recruiting and retaining top talent across our workforce,” says Eric Adams, Amazon’s Vice President of Talent Management and Compensation.
It’s not just the money
While inflation and a struggling economy have many people worried about the bottom line, making more money (59%) is not the only reason workers want to grow their skills. Less tangible but highly potent reasons to seek a new position include the ability to positively impact the working conditions and career aspirations of the next generation (47%) and to find a better work-life balance (48%)
Purpose is also key for 41%, who feel that enhancing their skills will help them increase their sense of purpose at work. This is especially true for Millennials and Gen Z, who are so focused on the bigger picture of what they’re doing that I call them the ‘Why Generation.’
The personal skills gap
The skills gap—the gulf between what employers need from the workforce and what the workforce can actually deliver—has been growing for years. Certain industries are hit harder than others with a lack of qualified workers, and there are a wealth of regional and local initiatives designed to shrink this divide.
But now it seems possible that, in some cases, workers will start bridging the gap themselves. They’re aware that their skills need leveling up, and there’s never been such an intense focus on learning and development as a competitive differentiator in the employment marketplace.
It’s not that companies aren’t offering any learning and development opportunities; 78% of employees feel that they have ‘significantly’ or ‘somewhat’ benefited from their current employer’s training resources. But they want more.
Free or partially covered college tuition tops the development wish list for 51% of employees, but it’s not the only thing people are looking for. Fifty-five percent also want training programs in other areas of the business, along with better networking opportunities.
For a company to attract the eye of these worried workers, career advancement opportunities must be part of the conversation from day one (88%). Further, a robust skills development program and the ability to progress toward a different job or career track are vital for 87% of employees.
In other words, the world is changing faster than ever—and no one wants to be stuck.
The ability to move
October is National Learning & Development Month—an awareness campaign that is gaining ground as more and more workers realize their need to adapt with the times. In a fast-changing employment landscape, they’ll actively seek out employers that go above and beyond to support that need with more than just ho-hum training programs.
Though the Amazon survey found that roughly 2 out of 3 employees are planning to quit in 2023 for better skill development opportunities elsewhere, the reverse is also true. A recent survey by eLearning pioneer Epignosis found that 76% of employees are more likely to stay with a company that offers continuous training.
A robust learning and development culture no longer just a perk. In the minds of employees, a lack of skills development opportunities at their current company is a valid reason to leave. To thrive in this changing landscape, organizations must make employee development, growth and mobility a top priority.
Ironically, it is the very ability to move in meaningful career directions that may keep people from moving on.
