Almost half (49%) of UK employees were ready to leave their jobs for better professional development opportunities, research from Arden University found.
64% of employees thought having up-to-date digital, technical or artificial intelligence (AI)-related skills gave them a distinct advantage.
Almost a third (31%) felt unprepared or uncertain about industry changes, including the rise of AI.
At the same time, 80% of employers said they struggled to find staff with the right skills, leading to unfilled jobs and lower productivity in sectors like construction and healthcare.
One in five (20%) workers said they doubted their manager’s leadership skills, showing a need for better management development.
Steven Hurst, director of corporate learning at Arden University, said: “Failing to offer meaningful upskilling isn’t just a retention headache; it’s an anchor dragging down economic performance.
“This development gap is already costing the UK economy up to £39 billion a year in lost productivity.
“When you factor in the digital skills gap, that figure swells to a staggering £63 billion in lost GDP annually.”
Hurst added: “Businesses that don’t invest in their people are now paying a high price for standing still.”
Hurst said apprenticeships could help solve the skills shortage.
Half (50%) of employees said they would consider an apprenticeship or upskilling programme if offered.
Among those unsure, 57% thought they were too old and 28% believed they already had all the skills needed.
Only 17% believed their employer would actually support them.
Hurst said: “Yet, the business case for apprenticeships is unshakeable. For every £1 invested in apprenticeships, the wider UK economy sees a return of £214.
“Apprentices contribute between £33,000 and £49,000 in productive value annually, often paying for themselves while they learn.
“Beyond the balance sheet, 98% of employers report benefits ranging from boosted morale to better service delivery.”
He added: “Compare this to the alternative – external recruitment costs averaging £4,100 per hire and the potential cost of a bad senior hire reaching up to 213% of their salary – and the choice becomes clear.
“Apprenticeships are the strategic lever we need to pull to retain talent, spark innovation and stop billions of pounds from slipping through the cracks of a skills shortage.”