Employers increase internal development despite gaps in skills data
Almost half of UK employers increased in-house talent development, while only a third collect data to identify skills gaps.
UK employers are increasing the development of existing employees, but many lack workforce data on the skills they have and will need.
The CIPD's Resourcing and talent planning report 2026, produced with Omni RMS, found 48% of employers had developed more talent in-house over the previous year. The proportion rose to 63% among large private-sector organisations.
Only 34% of employers collect data to identify skills gaps and 24% collect data on future skills requirements. Just 16% compare the cost of developing talent internally with recruiting it externally.
Nearly half, 46%, take an ad hoc approach to recruitment, replacing leavers without reviewing current or future requirements. Some 49% have a workforce planning strategy based on a robust understanding of current and future workforce needs.
Recruitment difficulties have eased but remain widespread. Among organisations that attempted to recruit, 53% experienced difficulties attracting candidates, down from 64% in 2024 and 77% in 2022.
Employers were more likely to report an increase in unsuitable applicants, at 58%, than suitable applicants, at 33%. More than half, 52%, said competition for well-qualified talent had increased over the previous year.
Upskilling existing employees is the most common action employers are taking to fill hard-to-recruit positions, reported by 51%. Apprenticeship schemes are used by 44%, while 36% use graduate programmes and the same proportion sponsor professional qualifications.
Overall, 35% of employers increased training during the previous 12 months. Increasing learning and development opportunities was also the most common action among organisations taking steps to improve retention.
Claire McCartney, senior policy adviser at the CIPD, said: ‘The findings of our report suggest that in order to be future-ready and retain skilled employees, organisations should prioritise strategic workforce planning and in-house development programmes to upskill existing employees in priority areas.’
Employers are also maintaining routes into the workforce. Apprenticeships are offered by 52% of organisations and graduate programmes by 43%. Mid-career change programmes are offered by 27%, up from 21% in 2021.
One in five employers plans to increase recruitment of people aged 18 to 24 over the next year, with securing a future talent pipeline and accessing digital skills among the main reasons.
Technology is also changing workforce requirements. Twenty-nine per cent of employers reported that technology and automation had replaced some jobs during the previous year, rising to 46% among large private-sector organisations.
CIPD resourcing and talent planning 2026: key figures
- 48% developed more talent in-house over the past year
- 63% of large private-sector organisations developed more talent in-house
- 51% use upskilling existing employees to fill hard-to-recruit positions
- 34% collect data to identify skills gaps
- 24% collect data on future skills requirements
- 16% compare the cost of developing talent internally with external recruitment
- 46% take an ad hoc approach to recruitment
- 53% of organisations that recruited experienced difficulties attracting candidates
- 35% increased training over the past year
Source: CIPD, Resourcing and talent planning report 2026, survey of 1,014 UK employers.
The survey covered 1,014 UK employers with HR decision-making responsibilities and is the 25th edition of the CIPD's resourcing and talent planning research.