Why Lack of Skills Development Is Crippling Employee Engagement (And What You Can Do About It)

Employee engagement has become a critical metric for measuring organizational health and performance. Recent surveys have indicated concerningly low engagement scores amongst our workforce. Such disengagement can have detrimental impacts on productivity, innovation, retention, and bottom-line results.

According to Gallup, companies with high employee engagement scores have 21% higher profitability compared to those with low engagement. The cost of disengaged employees to businesses can be significant, leading to absenteeism, high turnover, and lost productivity.

That's why it's crucial for organizations to focus on employee engagement and provide opportunities for continuous learning and skills development. Investing in your people ensures an adaptable, future-ready workforce that can drive innovation and move your business forward.

Why Did You Get a Low Employee Engagement Score?

Low employee engagement scores are often a result of multiple interconnected factors within an organization. Some of the most common reasons for low engagement include:

Lack of Skills Development Opportunities

Many employees feel their organizations do not provide enough opportunities for skills development and career growth. Without a clear path to advancement, employees can feel stagnant and disengaged in their roles. This is especially problematic for top talent who crave continuous learning and challenges. Organizations that fail to invest in developing their people risk losing them to competitors. In fact, 74% of workers say that a lack of development opportunities is preventing them from reaching their full potential, highlighting the significant impact of insufficient training and growth prospects on employee engagement.

Poor Feedback and Communication

Engagement suffers when employees feel out of the loop. Lack of regular feedback and poor communication from leadership causes employees to feel disconnected from company goals. They don't understand how their work contributes to the big picture. Fostering open communication and providing constructive feedback shows employees their value.

According to recent data, 32% of employees report having to wait three months or more to receive feedback, which significantly impacts their engagement and productivity. Additionally, 75% of disengaged workers cite poor relationships with management and infrequent feedback as key contributors to their lack of engagement. Furthermore, 41% of employees have left a job because they felt they weren't listened to, emphasizing the critical role of effective communication in retaining talent (MarketSplash) (Exploding Topics).

No Clear Career Path

Ambiguous career paths also lead to lower engagement. Employees want to understand what's required to progress and get promoted. Without transparency around career development, they feel unsure about their future at the company. This creates a sense of uncertainty that can diminish morale and engagement over time. Clearly defined advancement opportunities boost engagement.

In fact, only 21% of employees feel they have opportunities for personal career growth at their organization, which significantly impacts their motivation and engagement (Quantum Work). Moreover, 43% of employees report being unsatisfied with their career path, often citing a lack of investment in their professional development as a key reason for their disengagement (Quantum Work).

The Growth Stagnation Issue

A perceived lack of growth opportunities within a company can lead to high levels of disengagement. Employees, especially younger workers, have a strong desire for continuous learning and career development. When they feel stuck in their roles without any room for advancement, their motivation plummets.

There are several warning signs that indicate employees feel unable to grow professionally:

High Turnover Rates in Younger Employees

If your company is constantly losing promising talent within their first 2-3 years, it likely points to unmet expectations around career growth. These employees leave to find opportunities elsewhere.

Declining Performance Over Time

Disengaged employees tend to demonstrate decreasing productivity and performance after their first year or two at a company.

The psychological need for growth is strong. Failing to meet employees' desires to continuously upskill and move up within the organization has tangible costs in high turnover and worsening engagement over time.

Consequences of Neglecting Employee Skills Development

When organizations fail to invest in developing their employees' skills, the consequences can be severe. Studies have shown a direct correlation between employee engagement levels and profitability. According to research, over 60% of the global workforce reports feeling disengaged and unmotivated due to lack of skills development and career growth opportunities within their company.

This disengagement has tangible costs - disengaged employees tend to have higher absenteeism, lower productivity, and are more likely to leave the company. Replacing employees can cost between 50-60% of their annual salary. With the war for top talent intensifying, neglecting your employees' growth and development can cripple your ability to retain top talent and maintain a productive, engaged workforce. Investing in continuous skills development is key to boosting engagement, innovation, and ultimately your bottom line. The cost of neglecting employee development far outweighs the investment required to implement training initiatives. Forward-thinking companies realize engaged employees drive business results - by focusing on skills development, they future-proof their workforce while maximizing productivity and profitability.

Why Skills Development Matters

A strategic skills development program is one of the most powerful ways to increase employee engagement. By investing in their professional growth and abilities, employees feel valued and motivated. There is a strong psychological link between learning and engagement.

When employees have opportunities to gain new skills, their job satisfaction increases. Learning new things energizes people and makes them more enthusiastic about their work. It stimulates the mind and breaks up the monotony of daily routines. Employees who are developing new capabilities feel a renewed sense of purpose and become more passionate. In fact, 68% of employees consider training essential for job satisfaction, emphasizing the significant impact of continuous learning on their work experience.

Skills development also boosts motivation by showing employees that they have room to grow within the company. It gives people hope that their careers can progress, which encourages them to invest more in their roles. If employees feel stalled, their engagement quickly declines. Providing learning opportunities demonstrates a commitment to their advancement. According to a study, employees who have access to professional development are 15% more engaged, highlighting the direct correlation between skills development and engagement levels.

Studies show that the ability to learn and make progress at work is a top driver of engagement. For example, 80% of workers say that the chance to learn new skills would increase their engagement levels. Employees who utilize their strengths and continue growing are more productive, loyal, and satisfied with their jobs. Organizations that invest in employee development see a 24% increase in productivity, proving that such initiatives not only enhance engagement but also improve performance and overall business outcomes.

Furthermore, companies that prioritize training and development can see significant benefits in retention. Employees are 45% more likely to stay with a company if they receive regular training. This investment in skills development fosters loyalty and reduces turnover, which can be costly for businesses.

Leveraging Employee Engagement as a Strategic Business Imperative

To elevate this discussion to a higher level, it's essential to recognize that employee engagement should be viewed not just as an HR metric but as a strategic business imperative. Highly engaged employees are more likely to contribute innovative ideas and solutions. They are invested in the success of the organization and feel empowered to think creatively and take initiative.

Solutions to Enhance Employee Engagement

To truly boost employee engagement, organizations must provide clarity in career pathing, offer opportunities for skills development, and facilitate meaningful connections within the company. Here are some key strategies:

1. Clarity in Career Pathing: Employees need to have a clear understanding of their potential career paths within the organization. This includes knowing what skills and experiences are required to advance to the next level. Providing detailed career roadmaps helps employees see a future with the company, enhancing their commitment and motivation.
2. Opportunities for Skills Development: Organizations should invest in continuous learning programs that allow employees to gain new skills and knowledge. This could be through formal training sessions, online courses, or cross-departmental projects. Ensuring that employees have opportunities to apply their new skills in practical settings further reinforces their learning and keeps them engaged.
3. Project-Based Learning: Assigning employees to new projects where they can utilize and develop their skills helps maintain their interest and investment in their work. Projects provide a dynamic environment where employees can tackle new challenges, collaborate with different teams, and see the tangible impact of their efforts.
4. Connecting with Internal Mentors: Establishing a robust mentorship program can greatly enhance employee development. Internal mentors can provide guidance, share experiences, and help employees navigate their career paths. This connection fosters a supportive work environment and encourages continuous professional growth.
5. Managerial Tools for Career Conversations: Managers should be equipped with the tools and training necessary to have effective career conversations with their direct reports. Regular discussions about career aspirations, progress, and development plans ensure that employees feel valued and supported in their growth journey.
6. Visibility into Workforce Skills for HR and Business Leaders: HR and business leaders need comprehensive visibility into the skills and capabilities of their workforce. This enables them to make informed decisions about talent development, succession planning, and strategic workforce planning.

GoFIGR is an AI-driven platform that seamlessly integrates all these elements into one comprehensive solution. With GoFIGR, employees gain clarity on their career paths, exploring various trajectories and understanding the skills and experiences needed to advance. The platform provides opportunities for continuous learning, connecting employees with relevant projects and internal mentors to apply and expand their skills.

Managers are equipped with tools to facilitate meaningful career conversations, ensuring regular and productive discussions about growth and development. For HR and business leaders, GoFIGR offers deep visibility into the skills landscape of the organization, enabling strategic planning and informed decision-making.

By addressing these key areas, GoFIGR not only enhances employee engagement but also drives organizational success. To see how GoFIGR can transform your employee engagement and development strategies, visit our website and request a demo today.