Three in Ten Employers Lose a Full Workday Every Week to Skills Gaps, Chegg Research Finds

New research reveals that employers and employees in frontline-heavy industries struggle with significant skills gaps, rising burnout, and AI preparedness challenges.

• Three in ten employers (30%) spend more than eight hours each week compensating for workforce skills gaps.
• More than half (56%) of employers say entry-level workers aren’t prepared for work.
• 77% of employers in frontline-heavy industries say their skills training is effective – but 71% of employees say it had no impact on their pay or role.
• 45% of employers and more than one-third (35%) of employees say they have considered quitting due to stress caused by understaffing or skills gaps.
• More than one-quarter (26%) of employers say the skills gap in their sector is “serious” or at “crisis level.”

SAN FRANCISCO--(BUSINESS WIRE)--New research from Chegg, a global learning and workforce skilling company, reveals a significant skills gap that is placing pressure on employers and employees in frontline-heavy industries across the U.S. The consequences are already being felt: three in ten employers (30%) say they spend more than eight hours every week compensating for workforce skills gaps.

Chegg’s Frontline Workers Skills Index, based on a survey of 1,000 employers and 1,005 employees across ten frontline-heavy industries, including retail, manufacturing, and finance, uncovers a widening perception gap between employers and employees on skills gaps, AI adoption, and training effectiveness, suggesting that traditional approaches are no longer enough. By employers, the survey refers to respondents who are fully or partly involved in hiring decisions at their organization; employees refer to those with no responsibility for hiring.

“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 programs were never designed to bridge that gap.

“What workers are telling us very clearly is that generic training without practical application or measurable career impact no longer works. At a time when AI is rapidly reshaping the workplace, organizations need training that helps employees perform better in the roles they have today, while building the capabilities needed for tomorrow. That is exactly the problem Chegg Skills was built to solve.”

The Business Costs of Skills Gaps

The research shows that workforce skills shortages are already creating significant operational and human costs across industries. Nearly one-third of employers (30%) say they spend more than eight hours per week, the equivalent of a full working day, compensating for workforce skills gaps. In manufacturing, that figure rises to 46%.

The consequences are being felt across day-to-day operations. Employers identified increased mistakes and rework (34%), increased stress and burnout (33%), heavier workloads or covering for others (31%), and overtime or longer shifts (29%) as some of the most common impacts of skills shortages at their organization.

The strain is also affecting morale and retention. Nearly half of employers (45%) and more than one-third of employees (35%) say they have considered quitting due to stress caused by understaffing or workforce capability gaps. In food services and hospitality, 57% of employers and 43% of employees reported they had considered leaving their role, the highest among all sectors surveyed.

Training Programs Are Failing Workers – And Employees Know It

The workforce skills shortages begin before employees even enter the workplace. More than half of employers (56%) say entry-level workers are not adequately prepared for work, while more than one-quarter (26%) describe the skills gap in their sector as either "serious" or at "crisis level."

Once employees enter the workforce, the picture does not improve. While employers overwhelmingly believe workforce training programs are working, employees are less convinced, pointing to a deeper problem in how training is designed and delivered.

More than three-quarters of employers (77%) say training programs are effective overall, compared to 58% of employees. However, most employees (71%) say that training has led to no change in their pay or role.

The findings suggest the issue is not a lack of investment or motivation, but a lack of relevance and practical impact. From those who say it was not effective, 51% of employees say their training is too general or not connected closely enough to their day-to-day responsibilities. Employees also cite not enough hands-on practical learning (39%), insufficient coaching (34%), and weak managerial support (27%) as barriers to successful training outcomes.

Employers and Employees Agree There’s a Skills Problem, But Not on What It Is

The research reveals a growing perception gap between employers and employees about which skills are most urgently needed in today’s workplace.

While both groups agree that workforce capability gaps exist, they differ significantly on where the problem lies. Employers identified AI and automation skills (36%) and digital or IT capabilities (24%) as the most lacking in their workforce, reflecting the growing pressure to adapt to rapidly changing technologies.

Employees, however, pointed to leadership and people management (25%) as the biggest deficiency in their workplace, followed by communication and teamwork skills (24%). The findings suggest many workers see the challenge not only as a technical skills issue but also as a management and workplace culture issue.

At the same time, employers ranked problem-solving and critical thinking (36%) and communication and teamwork (34%) as the most important skills for long-term success – highlighting demand for both durable human skills and technical fluency.

AI Is Accelerating Faster Than Workers Are Adapting

The report also reveals a disconnect between how quickly employers are embracing AI and how slowly employees are adapting to it in their day-to-day work.

While 83% of employers say they feel confident using AI tools in their current role, only 44% of employees say the same. The divide is even more striking when it comes to career urgency: surprisingly, just 3% of employees believe AI proficiency is becoming critical to advancement in their role, compared to 18% of employers who say the same.

The findings suggest the biggest challenge may not simply be an AI skills gap but an awareness gap. Many employees do not yet recognize how rapidly workplace expectations are changing around them. More than half of employees (52%) say AI is not currently used in their role at all, meaning they have little opportunity to build practical fluency with the technology on the job.

At the same time, employers are integrating AI into workplace operations and decision-making. Only 14% of employers say AI is not currently used in their role at all, and one-quarter (25%) say AI use is already becoming expected in their role.

NOTES FOR EDITORS

About Chegg

Chegg is a learning platform helping businesses bring new skills to their workforce and giving lifelong learners and students the skills and confidence to succeed. Focused on the skilling market, which is $40 billion and growing, Chegg offers innovative tools for workplace readiness, professional upskilling, and language learning. Chegg also continues to offer students artificial intelligence (AI)-driven, personalized support. Chegg remains committed to its mission of improving learning outcomes and career opportunities for millions around the world. Chegg is a publicly held company and trades on the NYSE under the symbol CHGG. For more information, visit www.chegg.com.

About the research

The survey was conducted online between 24th February and 9th March 2026, gathering a total sample of 2,005 respondents across the U.S., including 1,000 employers and 1,005 employees. By “employers,” the survey refers to respondents who are fully or partly involved in hiring decisions at their organization. By “employees,” the survey refers to those with no responsibility for hiring.

Participants were drawn from 10 frontline-heavy industries: IT and software (100 employers, 86 employees), finance and insurance (100 employers, 104 employees), public sector/government (100 employers, 104 employees), manufacturing (100 employers, 104 employees), construction and infrastructure (100 employers, 100 employees), food services or hospitality (100 employers, 103 employees), transportation, logistics, and warehousing (100 employers, 103 employees), educational services (100 employers, 103 employees), retail (100 employers, 103 employees), and healthcare or social assistance (100 employers, 95 employees). The results reported below reflect averages across all industries.