According to Chegg’s Frontline Workers Skills Index, based on a survey of 1,000 U.S. employers and 1,005 U.S. employees across ten frontline-heavy industries including retail, manufacturing and finance, three in ten employers spend more than eight hours every week compensating for workforce skills shortages. The findings expose a widening disconnect between employers and employees regarding workplace preparedness, training effectiveness, leadership development and the growing role of artificial intelligence in the modern workforce.
“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. He noted that employers are focused on artificial intelligence readiness, adaptability and operational performance, while employees are primarily concerned with career mobility, leadership quality and advancement opportunities. He added that traditional training programs were not designed to bridge this divide.
Rosensweig further stated that workers are increasingly demanding practical, measurable training outcomes rather than generic programs that offer little career impact. He emphasized that as artificial intelligence rapidly transforms workplaces, organizations require training solutions that improve current job performance while preparing employees for future responsibilities.
The report highlights the growing business costs associated with workforce capability shortages. Nearly one-third of employers reported spending more than eight hours every week compensating for skills gaps, equivalent to an entire working day. In the manufacturing sector, the figure rises sharply to 46 percent.
Employers identified increased mistakes and rework, reported by 34 percent of respondents, as one of the most common consequences of workforce skills shortages. Increased stress and burnout affected 33 percent of organizations, while 31 percent cited heavier workloads and the need for employees to cover for colleagues. Another 29 percent reported overtime requirements and longer shifts as direct consequences of capability deficiencies.
The operational strain is also affecting employee retention and workplace morale. Nearly half of employers, representing 45 percent of respondents, and more than one-third of employees, representing 35 percent, said they had considered leaving their jobs due to stress caused by understaffing or workforce capability gaps. The highest levels of dissatisfaction were recorded in the food service and hospitality sector, where 57 percent of employers and 43 percent of employees reported considering resignation.
The research indicates that workforce readiness issues begin before employees enter the workplace. More than half of employers, accounting for 56 percent, believe entry-level workers are inadequately prepared for professional roles. Additionally, 26 percent of employers described the skills gap within their sector as either serious or at a crisis level.
Once employees enter the workforce, confidence in training programs remains divided. While 77 percent of employers believe their workforce training initiatives are effective, only 58 percent of employees share that view. More significantly, 71 percent of employees reported that training programs resulted in no change to their pay, position or career progression.
The findings suggest that the challenge lies not in a lack of investment but in the relevance and practical application of training. Among employees who considered training ineffective, 51 percent said programs were too general and disconnected from daily responsibilities. Another 39 percent cited insufficient hands-on learning opportunities, while 34 percent pointed to inadequate coaching and 27 percent highlighted weak managerial support as major obstacles to successful development.
The report also reveals a substantial perception gap regarding the skills most urgently needed in today's workplace. Employers identified artificial intelligence and automation skills as the largest workforce deficiency, with 36 percent highlighting this area. Digital and information technology capabilities followed at 24 percent.
Employees, however, viewed leadership and people management as the most significant workplace deficiency, cited by 25 percent of respondents. Communication and teamwork skills followed closely at 24 percent. These findings indicate that many employees perceive workplace challenges not only as technical issues but also as concerns related to leadership effectiveness and organizational culture.
Despite differing perspectives, employers identified problem-solving and critical thinking, cited by 36 percent, and communication and teamwork, cited by 34 percent, as the most important capabilities for long-term success, underscoring the growing demand for both technical proficiency and durable human skills.
Artificial intelligence emerged as one of the most significant areas of divergence between employers and employees. While 83 percent of employers reported confidence in using artificial intelligence tools in their current roles, only 44 percent of employees expressed the same level of confidence.
The gap becomes even more pronounced when examining career advancement expectations. Only 3 percent of employees believe artificial intelligence proficiency is becoming critical for career progression, compared with 18 percent of employers who view it as an increasingly important requirement.
The report suggests that the challenge extends beyond a simple artificial intelligence skills shortage and may represent a broader awareness gap. More than half of employees, representing 52 percent, reported that artificial intelligence is not currently used in their roles, limiting opportunities to develop practical experience. In contrast, only 14 percent of employers stated that artificial intelligence is absent from their work environment, while 25 percent said its use is already becoming an expected component of professional responsibilities.
Chegg’s findings underscore a rapidly evolving workforce landscape in which employers and employees recognize the existence of skills gaps but remain divided over their causes and solutions. As artificial intelligence adoption accelerates and workplace expectations continue to change, the report suggests that organizations must rethink workforce development strategies to ensure training delivers measurable operational value while supporting employee growth and career advancement.
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