Upskilling is becoming a central part of workforce planning as employers respond to changing skills requirements, recruitment challenges and a slower labour market. The latest research from the Chartered Institute of Personnel and Development shows that 91 percent of UK employers are already developing existing employees or considering doing so in the future.

The findings come from the CIPD Resourcing and Talent Planning report 2026, based on a survey of 1,014 UK employers with responsibility for HR decision making. The research was conducted between April and May 2026 and highlights how organisations are changing the way they attract, retain and develop talent.

Why Employers Are Focusing on Existing Talent

One of the clearest findings is the growing emphasis on developing people already inside the organisation. According to the CIPD, 48 percent of employers increased their efforts to develop talent internally over the past year. In addition, 45 percent of organisations that introduced initiatives to improve retention increased learning and development opportunities.

This shift reflects a practical response to recruitment difficulties. More than half of organisations that attempted to recruit reported challenges attracting candidates, particularly for senior and skilled positions. At the same time, 58 percent said the number of unsuitable applications had increased.

Consequently, developing internal capability can give organisations another way to address skills shortages without relying entirely on external hiring.

Skills Development and Workforce Planning

The findings have important implications for workforce planning. Instead of waiting for a skills gap to become an immediate recruitment problem, employers can identify future capability requirements and develop employees before those shortages become critical.

This approach also connects closely with Future of work research. Technology continues to change how employees perform their roles, while organisations increasingly need people who can adapt to new systems, processes and responsibilities.

Furthermore, effective workforce planning allows HR teams to connect learning investment with business objectives. Training becomes more valuable when it addresses specific capability requirements rather than operating as a separate activity.

The Connection With Employee Retention

Employee development can also influence how people view their long term prospects within an organisation. When employees have access to learning opportunities and visible career pathways, they may have stronger reasons to remain with their employer.

The CIPD research found that 44 percent of employers reported greater difficulty retaining talent. Therefore, investment in development is increasingly being considered alongside other retention measures.

Employee engagement research can provide additional insight into what employees expect from their workplace. Development opportunities, career progression and meaningful work can all form part of a broader employee experience strategy.

Recruitment Challenges Are Changing Talent Strategies

Although internal development is gaining attention, recruitment remains important. The research shows that organisations continue to experience difficulties finding suitable candidates even as overall hiring activity becomes more cautious.

Interestingly, employers are also maintaining pathways for younger workers. More than half of surveyed organisations already offer apprenticeships, while 43 percent run graduate programmes. Around one fifth plan to increase recruitment of workers aged 18 to 24 over the coming year.

These findings are particularly relevant to Talent acquisition trends because organisations are increasingly looking beyond experienced candidates and considering how future talent pipelines can be built internally.

Technology Is Increasing the Need for New Skills

Technology is another important factor behind the growing focus on development. Digital transformation, automation and artificial intelligence are changing the capabilities required across many roles.

CIPD research published earlier in 2026 also indicates that stronger confidence in AI related skills is associated with more positive reported effects on worker performance. The research suggests that technology alone does not determine outcomes because the ability of leaders and HR professionals to apply relevant skills also matters.

As a result, organisations may need to combine technology investment with structured learning. This can help employees understand new tools while supporting managers who are responsible for integrating those tools into everyday work.

Leadership Development Becomes More Important

Leaders have an important role in turning development programmes into meaningful workplace experiences. Managers need to understand which skills matter, how employees can build them and how learning connects with career progression.

Leadership development insights therefore become increasingly relevant as businesses move toward more skills focused workforce models. Managers who regularly discuss development goals can help employees understand how their existing capabilities can translate into future opportunities.

Moreover, leadership teams can use workforce data to identify emerging capability gaps and decide where internal development, recruitment or partnerships may be appropriate.

A Changing Employment Environment

The focus on internal development is also taking place against a backdrop of cautious recruitment. The CIPD Labour Market Outlook reported that the net employment balance remained at plus 9 in summer 2026, close to its lowest level outside the pandemic period.

Meanwhile, the CIPD reported that 28 percent of organisations reduced permanent recruitment during the previous year, compared with 22 percent that increased it. This suggests that many employers are being more selective about recruitment while simultaneously looking for ways to strengthen existing teams.

For HR professionals, these conditions make Workplace management strategies increasingly important. Workforce decisions need to balance immediate operational requirements with longer term capability planning.

What HR Leaders Can Learn From the Findings

The research suggests that employers should treat skills development as an ongoing workforce activity rather than an occasional training exercise. HR teams can begin by identifying the capabilities most important to future business plans and then assessing where those capabilities already exist.

Next, organisations can connect learning programmes with career pathways, succession planning and performance conversations. This creates a clearer relationship between development spending and workforce outcomes.

At the same time, businesses should continue monitoring HR trends and insights because labour market conditions, technology and employment legislation can quickly change the skills organisations need.

Actionable Insights for Employers

The latest findings indicate that internal talent development can play an important role when recruitment becomes more difficult. Employers can strengthen this approach by combining skills mapping with learning opportunities, career progression and evidence based workforce planning.

They can also maintain apprenticeships and graduate programmes to develop future talent while giving existing employees opportunities to expand their capabilities. Ultimately, a balanced approach can help organisations respond to immediate skills shortages while preparing their workforce for changing business requirements.

HRInfoPro delivers practical HR trends and insights to help professionals understand changing workplaces, talent strategies and workforce developments.
Reach out to HRInfoPro for informed perspectives that can support smarter people management and workforce planning decisions.

Source – hrmagazine