Pluralsight, the technology workforce development company, today released its 2025 Tech Skills Report, which looks at how companies can keep up with evolving technologies and equip employees with the skills that matter most. This year’s report, based on a survey of 1,500 tech executives, IT professionals, and business professionals in the United States, United Kingdom, and India, revealed that while 95% of executives say building a culture of learning is a priority at their organization, 95% of IT and business professionals say they need more support to learn tech skills.
For the fourth consecutive year, the most cited obstacle to skill development is lack of time to learn. Despite the acknowledged importance of upskilling, only 46% of organizations provide employees with dedicated time for learning on the job.
“Organizations understand that a culture of continuous learning is essential to staying competitive, however, translating that intention into action with the right strategies, resources, and the time needed to upskill effectively remains a significant challenge for many,” said Chris Herbert, Chief Content Officer at Pluralsight. “Finding ways to course-correct towards more effective tech learning programs will be mission-critical as rapid cloud and AI innovations further pressure workforces.”
Additional key findings in the report include:
1. Progress towards closing skills gaps is stalling, leading to abandoned projects
As technologies like AI, cloud computing, cybersecurity, and software development evolve rapidly, organizations face mounting pressure to upskill. However, while 67% of organizations report progress in reducing the IT skills gap, that figure is down 11% year-over-year, signaling a potential slowdown in workforce development.
The lack of critical technical skills is derailing project execution:
- 48% of IT professionals and 58% of business professionals say they had to abandon projects in the past year due to technical skill shortages.
- The most impacted domains include cybersecurity, cloud infrastructure, AI and machine learning (ML), and DevOps.
This signals a widening enterprise-level demand for tech upskilling, not just within IT departments but across business functions that now depend on technical capabilities to drive innovation.
Notably, executives, IT teams, and business professionals all rank cloud skills as a top priority for 2026, reflecting its foundational role in digital transformation, AI implementation, and modernizing legacy systems.
2. Upskilling is faster and more cost-effective than hiring
When critical tech skills are on the line, upskilling existing employees is faster and more cost-effective than hiring. Eighty-nine percent of organizations say it costs more to hire IT talent than to upskill their current workforce.
Cost Comparison:
- 73% of organizations spend under $5,000 per employee to upskill.
- Nearly 46% spend over $5,000 to hire a single tech employee.
- In the U.S., the average upskilling cost is $5,770, compared to $14,170 for hiring—a 145% cost saving reflecting the benefits of upskilling.
Speed Advantage:
- 43% of organizations say upskilling is faster than hiring, allowing teams to quickly contribute to critical projects and accelerate time-to-impact.
Return on Investment:
- Compared to hiring for IT roles, organizations investing in internal talent development report strong ROI, particularly in efficiency, productivity, and long-term cost savings.
AI’s role in tech upskilling:
- 100% of executives surveyed are using AI to support upskilling initiatives.
- For this purpose, AI is most notably being leveraged to automate training administration, curate relevant role-specific learning content, and personalize learning paths for faster skill acquisition.
3. Upskilling programs drive promotions and salary raises
Certifications are currently the number one factor in earning promotions or raises for tech professionals. Micro-credentials and digital badges in tech skills were similarly rewarding for business professionals, emphasizing the growing value of tech skills across the enterprise.
- 46% of IT employees who earned certifications reported salary increases or promotions as a direct result.
- 47% of non-technical employees said tech skill microcredentials or digital badges played the biggest role in earning a raise or stepping into a new role.
- Non-IT professionals cite company upskilling programs, bootcamps, and immersive training equally as impactful as employer-funded degrees when it comes to promotions.
For full research insights, download Pluralsight’s 2025 Tech Skills Report.
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