Recruiting and retaining skilled employees remains a challenge for many UK employers. As a result, more organisations are looking at how they can develop the people they already have, rather than relying solely on external recruitment.

But does investing in employee development actually help people stay with an organisation for longer?

The answer is that it can help, particularly when learning is linked to career progression and business needs. However, upskilling alone won't guarantee lower staff turnover. The outcome depends on how employers approach development and whether employees can see a future for themselves within the organisation.

What does the evidence say about upskilling and employee retention?

According to the Chartered Institute of Personnel and Development (CIPD), 48% of employers increased their efforts to develop talent in-house over the last year, according to its Resourcing and talent planning report 2026, published on 22nd September 2026.

The research surveyed 1,014 UK employers with responsibility for HR decision-making, with fieldwork conducted between 2nd April and 2nd May 2026.

Alongside the 48% who increased their efforts to develop talent in-house, the report found that:

• 45% of employers that introduced initiatives to improve retention increased learning and development opportunities, making it one of the most common measures taken.
• 44% of employers said talent had become more difficult to retain, highlighting the challenges organisations face in keeping skilled employees.

These findings suggest that employee development is an important part of how employers approach retention and workforce planning.

However, they don't prove that upskilling directly reduces turnover. The research shows what employers are doing in response to retention challenges, rather than establishing a cause-and-effect relationship between training and employees staying longer.

LinkedIn's Workplace Learning Report 2025 provides further evidence of how employers approach retention. It found that 61% of UK organisations provide employees with learning opportunities to improve their retention rates.

So, while the evidence doesn't guarantee a particular outcome, it does highlight why developing existing employees deserves consideration as part of a wider retention strategy.

How can upskilling help employers retain staff?

There are several reasons why investing in employee development could encourage people to stay with an organisation.

1. It creates opportunities for career progression

Employees may start looking elsewhere when they feel they've reached a limit in their current role or can't see a clear route to progress.

Upskilling can help employers offer another path forward. Developing someone's skills could prepare them for additional responsibilities, a promotion or a move into a different area of the business.

For example, an employee working in finance might develop their data analysis skills to take on more analytical responsibilities. An apprenticeship or professional qualification could also help them build the knowledge needed to progress into a more senior role.

These opportunities give employees a reason to consider their future within the organisation, rather than looking externally for their next step.

2. It shows employees that their development matters

Training can also influence how employees feel about their employer.

When an organisation invests time and resources in helping people develop, it can demonstrate that their contribution and future potential are valued.

This is particularly relevant when learning is supported by meaningful opportunities to apply new skills. Employees may be more likely to see the value of their development when they can use what they've learned in their day-to-day work and understand how it supports their career.

However, training needs to be backed up by action. If employees complete a qualification but have no opportunity to progress, take on new responsibilities, or use their skills, the investment may not have the intended effect on retention.

3. It helps employees keep pace with changing skills requirements

The skills businesses need are constantly changing, particularly as new technologies affect how people work.

Developing existing employees can help organisations respond to these changes while giving people opportunities to grow in their current roles.

For example, training in data literacy, digital tools or AI could help employees work more effectively with new technologies.

This is particularly relevant as employers introduce AI into their workplaces. Kaplan's From AI to ROI: Who owns the problem? report found that 32% of C-suite leaders said their organisation had experienced difficulty retaining staff with AI capabilities. This highlights a specific challenge for employers looking to build and retain the skills they need as technology changes.

When employees can develop relevant skills and see how their roles might evolve, they have another reason to consider staying and progressing within the business.

Is upskilling more cost-effective than hiring new employees?

Retention is only one part of the business case for upskilling. Employers also need to consider how developing existing staff compares with recruiting externally.

Hiring can be necessary when an organisation needs specialist knowledge that isn't available internally, or when it needs additional people to meet demand. However, recruitment takes time and resources, and finding suitable candidates isn't always straightforward.

ManpowerGroup's 2026 Talent Shortage Survey provides another perspective on recruitment challenges. The survey found that 73% of UK businesses were struggling to find skilled talent. These findings highlight some of the challenges involved in finding people with the right skills externally.

Upskilling existing employees offers an alternative, with several potential benefits for employers:

• It may help reduce recruitment costs by avoiding some of the expenses associated with advertising, recruitment and onboarding.
• Existing employees already understand the organisation, its processes and its customers, giving them a foundation to build on as they develop new skills.
• Training can focus on the specific capabilities employees need to perform their current roles more effectively or take on new responsibilities.
• Offering opportunities to move into other roles can help employers fill skills gaps while retaining valuable knowledge and experience within the business.

These potential benefits need to be weighed against the cost of training, the time required to develop new capabilities and the impact of learning on employees' existing responsibilities.

Upskilling may be a good option when existing employees have the potential to develop the skills needed and the organisation has time to support their learning. External recruitment may be more appropriate when specialist skills are needed quickly or the required capabilities aren't available within the existing workforce.

In many cases, a combination of hiring and upskilling will make the most sense.

How can employers make upskilling more effective?

Investing in training is a starting point, but employers also need to think about how development fits into their wider workforce strategy.

Here are four practical steps to consider.

1. Identify the skills your organisation needs

Start by reviewing the capabilities your business has today and the skills it expects to need in the future.

This could include technical skills, such as data analysis, as well as professional capabilities that support progression into more senior roles.

Understanding these priorities helps employers direct their investment towards learning that benefits both employees and the organisation.

2. Connect learning to career opportunities

Employees should be able to understand how developing their skills could help them progress.

Consider how training could support a promotion, a move into another team or greater responsibility within an existing role. Where possible, make these opportunities visible so employees can see how their development connects to their longer-term goals.

3. Give employees the right support

Employees need time and support to make the most of their learning.

Line managers have an important role to play here. Regular conversations about development can help identify skills gaps, discuss career ambitions and explore suitable learning opportunities.

Employers should also consider how training fits around existing workloads. Without sufficient time to study and practise new skills, employees may struggle to apply what they've learned.

4. Measure the outcomes

To understand whether upskilling is supporting retention, employers need to look beyond course completion rates.

Track staff turnover, internal promotions and employee engagement before and after a development programme. Where possible, compare these results with those for employees who haven't taken part in the programme.

This won't automatically establish that training caused any change in retention, as other factors will also influence whether employees stay. However, it can help employers assess whether their approach is delivering the intended benefits and where it might need to change.

Can apprenticeships help employers retain existing staff?

Apprenticeships are one option for organisations looking to develop their existing workforce.

They combine structured learning with practical experience, allowing employees to build relevant knowledge and apply it in their roles. Depending on the programme, they can support people who want to develop in their current position, prepare for greater responsibility or move into a different area of the business.

For employers, an apprenticeship can provide a structured way to address skills gaps while supporting an employee's longer-term development. The CIPD's 2026 report found that 52% of employers offer apprenticeships, showing that they are an established option for workforce development. This figure doesn't establish a link between apprenticeships and lower turnover, but it provides useful context for employers considering different ways to develop their people.

Kaplan’s apprenticeship programmes give employers a way to develop talent within their organisation. The right programme will depend on the skills you need, the roles you're looking to develop and the career opportunities available to your employees.

So, does upskilling reduce staff turnover?

Upskilling can support employee retention by creating opportunities for career progression, helping people develop relevant skills and showing that their employer is invested in their future.

However, training isn't a guaranteed solution to staff turnover. Pay, working conditions, management, workload and career opportunities can all influence an employee's decision to stay or leave.

The strongest approach is to make development part of a wider workforce strategy, with clear skills priorities, opportunities to apply learning and realistic routes for career progression.

For employers weighing up whether to build skills internally or recruit externally, the question isn't simply which option costs less. It's which approach will help the organisation develop the capabilities it needs while giving its people opportunities to grow.

Explore Kaplan's apprenticeship programmes and find out how structured learning could support your workforce development plans.