How Employers Can Improve Retention by Supporting Staff Upskilling in the UK
26 Sept 2025
The Retention Challenge Facing UK Employers
Employers across the UK are facing a pressing challenge. Retaining skilled employees is becoming harder as staff look for more than a monthly salary. Workers are asking for development opportunities, training pathways, and genuine career growth. When they cannot find these within their organisation, many look elsewhere.
The cost of employee turnover is significant. Studies have shown that replacing a staff member can cost between six and nine months of their salary once recruitment, onboarding, and lost productivity are factored in. For many businesses, this is a direct hit on both budgets and performance. Meanwhile, employer investment in training has fallen by over a quarter since 2005, leaving UK businesses trailing behind European competitors.
In this climate, employers are beginning to ask the right question: how can upskilling help improve staff retention?
Why Upskilling is Central to Retention
Upskilling refers to equipping employees with new or advanced skills that help them perform better in their current role or prepare them for new responsibilities. For staff, it signals that their employer is invested in their long-term future. For businesses, it ensures a more capable workforce ready to adapt to market shifts.
UK data shows that 45 percent of employees are more likely to stay if they are offered training and development. That single figure highlights how powerful a retention tool upskilling can be. Workers who see learning opportunities tend to be more motivated, more engaged, and less likely to leave.
In competitive industries where talent is scarce, the ability to keep skilled employees is often the difference between success and decline.
The Link Between Career Progression and Staff Loyalty
Career progression has become a defining expectation for today’s workforce. Generation Z and Millennials in particular see job roles as stepping stones, and they evaluate employers based on how well they can support development. When upskilling is linked to clear progression routes, staff are more inclined to stay.
For example, offering technical employees leadership training can help them move into management roles within the same company, rather than seeking opportunities elsewhere. Similarly, structured programmes that connect training with promotions or pay reviews create a strong incentive for loyalty.
Retention improves when employers treat career growth as a shared journey, not just an individual responsibility.
Building a Learning Culture that Lasts
Providing a few training sessions is not enough to change retention outcomes. The real transformation comes from building a culture of learning. This means creating an environment where ongoing development is expected, supported, and celebrated.
Line managers are central to this. When managers are trained to coach, mentor, and encourage skills development, the culture spreads throughout teams. Equally important is giving employees time and resources to engage with training. If learning is only seen as an after-hours activity, it will quickly lose momentum.
Employers who embed learning into daily work life tend to see greater engagement, higher performance, and stronger loyalty from staff.
Overcoming Barriers to Upskilling in the Workplace
Employers often want to support training but encounter barriers. Time pressures, financial concerns, and lack of confidence about where to begin are common challenges. These issues are valid, but they are not insurmountable.
Flexible learning solutions are now widely available. Short modular courses, online learning platforms, and blended programmes allow staff to upskill without disrupting operations. Employers can also work with training providers to tailor courses around business needs.
Funding support is another solution. Government programmes, apprenticeship levy transfers, and local grants provide routes for businesses to access training without absorbing all costs directly. By using these resources, employers can remove many of the obstacles that typically block investment in upskilling.
The ROI of Investing in Training
Some employers hesitate to invest in training because they worry staff will leave once they are more skilled. In reality, the opposite is usually true. Employees who feel valued and developed are more likely to remain loyal.
The return on investment from training goes beyond retention. Upskilled staff are more productive, adaptable, and able to fill skills gaps internally. This reduces the need for expensive external recruitment.
When comparing the cost of training with the cost of replacing staff, the balance is clear. Retention through upskilling is not only the people-focused choice, it is also the financially sustainable one.
Government and Employer-Funded Training Routes
The UK offers several avenues for employers to support staff development. Apprenticeships, which can be funded through the apprenticeship levy, provide structured training across many industries. Continuous Professional Development (CPD) courses, often linked to professional bodies, ensure staff maintain and expand their skills.
There are also local and sector-specific grants that can offset the costs of upskilling. For small and medium-sized enterprises, these programmes can make a real difference, giving access to training that would otherwise feel out of reach.
Employers who make use of these options often find that staff are not only more skilled but also more engaged, because they see clear evidence of investment in their future.
Tailoring Upskilling for a Multigenerational Workforce
The modern workplace is diverse in age as well as background. Each generation has different priorities when it comes to training. Gen Z workers typically value digital skills and opportunities to advance quickly. Millennials often focus on leadership and progression. Generation X and Baby Boomers may place more emphasis on stability and specialist expertise.
Employers who tailor upskilling opportunities to these different expectations are more likely to retain talent across age groups. Digital skills training, leadership development, and mentoring programmes can be combined to ensure that all employees see value in staying with the organisation.
This personalised approach demonstrates that training is not one-size-fits-all, and it strengthens loyalty across the workforce.
Measuring the Impact of Upskilling on Retention
To justify continued investment in training, employers need to measure its impact. Key performance indicators can include turnover rates, employee engagement survey results, promotion statistics, and productivity measures.
Training needs analysis is also essential. By reviewing which skills are lacking and aligning training with business strategy, employers can ensure that upskilling delivers both staff satisfaction and organisational value.
Regular feedback loops, where employees share how training has influenced their work, provide qualitative evidence of impact. Combined with retention statistics, these insights make a strong case for sustained investment.
Practical Steps Employers Can Take Now
For employers considering how to start or strengthen their approach to upskilling, several practical steps stand out:
Conduct a training needs analysis to identify the most urgent skills gaps.
Engage staff in decision-making to ensure that training meets real career expectations.
Leverage government support such as apprenticeship funding or local training grants.
Invest in line manager development to create a learning culture from the top down.
Partner with training providers who can design flexible programmes that align with your business needs.
Employers who act early will see the benefits in retention, productivity, and long-term competitiveness. Platforms such as www.swappro.co.uk and www.swappro.app provide accessible ways for businesses to connect with training providers and explore tailored solutions.
Why Supporting Upskilling is a Retention Essential
The evidence is clear. Employees stay longer when they feel their skills are being developed and their careers supported. Employers who invest in upskilling not only reduce turnover but also build a stronger, more adaptable workforce.
In a market where competition for talent is fierce, supporting staff training is no longer optional. It is an essential strategy for retention, engagement, and long-term success.