Finding qualified employees has been a persistent challenge for small businesses, with a recent report by WGU Labs suggesting that upskilling existing staff could be the solution. The report, drawing on two decades of market data, highlighted that 87% of companies globally are grappling with a skills gap. Concurrently, a significant portion of the American workforce lacks college degrees and remains in low-wage positions without growth prospects.
Investing in what WGU Labs terms “rising talent” not only empowers these employees to advance in their careers but also offers small businesses the opportunity to cultivate a resilient, loyal, and skilled workforce. This approach resonates particularly well with small businesses that enjoy close relationships with their employees and possess the flexibility to provide upskilling opportunities, thereby nurturing local talent pipelines.
The workforce challenges faced by small businesses are evident in the National Federation of Independent Business’ April 2025 jobs report. A substantial 34% of small business owners reported unfilled job openings, primarily due to the scarcity of qualified applicants. Industries like construction, transportation, manufacturing, and wholesale have witnessed higher rates of job vacancies, emphasizing the need for skilled workers.
Rising talent, comprising 15% of the U.S. working-age population, encounters various obstacles in career progression, such as technological deficiencies, food insecurity, and limited access to education. Despite these challenges, these employees possess valuable skills that can benefit organizations across sectors. By creating pathways for their development, businesses can bridge skill gaps and enable these employees to thrive.
Upskilling existing talent requires addressing barriers like time constraints, costs, lack of incentives, and inadequate communication about internal opportunities. To overcome these obstacles, companies can collaborate with other local businesses to share resources and talent, partner with community organizations for talent referrals, reassess skills requirements, provide educational opportunities, and offer support to help rising talent overcome personal challenges.
Developing apprenticeship programs, offering educational opportunities upon hiring, and providing support like childcare during training sessions or flexible schedules for courses can foster a culture of learning and enhance employee well-being. These initiatives not only contribute to a skilled workforce but also promote organizational resilience and growth.
Embracing upskilling as a strategy to address hiring challenges aligns with a broader trend of investing in employee development and retention. By nurturing existing talent, small businesses can not only meet their immediate staffing needs but also create a foundation for long-term success and sustainability in a competitive market.
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