Employers lose up to a full workday a week to skills gaps, study finds

Employers across frontline-heavy industries in the United States are losing significant productivity due to workforce skills gaps, with many spending the equivalent of a full workday each week compensating for capability shortfalls, according to a new research.

The findings, published in Chegg’s Frontline Workers Skills Index, reveal that 30% of employers lose more than eight hours per week addressing skills deficiencies among workers. The challenge is particularly acute in manufacturing, where 46% of employers reported losing at least a full workday weekly to workforce capability gaps.

The study surveyed 1,000 employers and 1,005 employees across 10 frontline-focused sectors, including retail, manufacturing, healthcare, hospitality, and finance.

Skills shortages are also affecting day-to-day operations, with employers reporting increased mistakes and rework (34%), higher levels of stress and burnout (33%), heavier workloads as employees cover for colleagues (31%), and greater reliance on overtime and extended shifts (29%).

The impact is extending beyond productivity and into employee retention. Nearly half of employers (45%) and more than one-third of employees (35%) said they had considered leaving their jobs because of stress linked to understaffing and workforce capability gaps.

Food services and hospitality emerged as the sectors most affected, with 57% of employers and 43% of employees reporting they had contemplated quitting due to workforce-related pressures.

The report suggests that the problem begins before workers enter the workforce. More than half of employers (56%) said entry-level employees arrive insufficiently prepared for their roles, while 26% described skills shortages in their industry as either “serious” or at a “crisis level.”

Despite widespread agreement that capability gaps exist, employers and employees differ sharply on what skills are missing.

Employers identified AI and automation skills (36%) and digital or IT capabilities (24%) as the most significant deficiencies. 

Employees, however, pointed to leadership and people management skills (25%) as the biggest gap, followed by communication and teamwork capabilities (24%).

“The most important finding in this research is that employers and employees are often looking at the same workforce challenges but diagnosing completely different problems,” said Dan Rosensweig, Chief Executive Officer of Chegg.

“Employers are focused on AI readiness, adaptability, and operational performance, while employees are focused on career mobility, leadership, and advancement. Neither side is wrong – but most training programmes were never designed to bridge that gap.”

The study also highlighted a growing disconnect around artificial intelligence. While 83% of employers said they are confident using AI tools in their roles, only 44% of employees reported the same level of confidence.

Just 3% of employees believe AI proficiency is becoming essential for career progression, compared with 18% of employers. 

More than half of employees (52%) said AI is not used in their roles at all, while only 14% of employers shared that view.

Training programmes appear to be falling short of addressing these challenges. 

Although 77% of employers described their training initiatives as effective, only 58% of employees agreed. Additionally, 71% of employees said training had not resulted in any change to their pay, responsibilities, or career progression.

Among employees who viewed training as ineffective, more than half (51%) said programmes were too generic and lacked relevance to their daily work.

“What workers are telling us very clearly is that generic training without practical application or measurable career impact no longer works,” Rosensweig said.

“At a time when AI is rapidly reshaping the workplace, organisations need training that helps employees perform better in the roles they have today, while building the capabilities needed for tomorrow.”