As technology reshapes industries, companies face a critical challenge: building workforces with skills that match real demands. The statistics tell a troubling story—52% of recent graduates are underemployed in year one, while a quarter of middle-skills credentials don’t align with real job opportunities. As organizations navigate this challenge, a strategic approach called “right-skilling” is emerging as the solution to this growing skills crisis.
Right-skilling: A strategic imperative
Right-skilling—the strategic alignment of job-specific education with industry and business demands—offers a path forward. This approach transforms learning and development from a perfunctory HR function into a key business driver.
A Fortune 500 manufacturing organization provides a compelling case study. Facing an aging workforce and a thin talent pipeline for future plant operators, the company co-developed a custom leadership program focusing on finance, supply chain management and strategic thinking.
The early results were impressive:
- 25 high-potential employees enrolled in the first cohort
- 84% of first cohort leaders are now on track for promotion to critical roles
This example demonstrates how right-skilling can simultaneously address immediate business challenges while building long-term organizational resilience.
See also: Why upskilling is the answer to many of today’s greatest HR challenges
Building right-skilling programs
Across industries, shifting skill needs have left employees concerned about keeping up.
Research shows that 55% of employees report that a lack of confidence in their abilities leads to increased stress at work, and 41% share that this situation hinders their performance. These trends weaken an organization’s competitive edge.
Whether launching a new initiative or enhancing an existing one, right-skilling deserves a central place in your workforce development strategy. Organizations committed to impactful right-skilling should consider the following key elements:
Cohort-based learning: Elevating success through shared journeys
With cohort-based learning, employees progress through structured programs as a group, learning together and supporting each other. This education approach fosters an environment where participants exchange diverse insights and expertise.
Jonathan McCombs, Ph.D., dean of the College of Health and Public Administration at Franklin University, recently offered InStride a clear view of the model’s success: “We have seen firsthand how these clinical cohorts drive stronger learner outcomes. Learners consistently achieve higher pass rates on certification exams—23 percentage points above the national average on the NCCT TS-C exam—thanks to the combined strength of the program’s structure, practitioner faculty, close support and our close alignment with workforce needs.”
Integrated learning: Merge theory with practice
Traditional development approaches often fall into two distinct categories: academic programs that excel at conceptual knowledge but frequently lack workplace relevance, or job-specific training focused narrowly on immediate tasks without building transferable skills. Neither approach alone can produce the versatile, high-performing talent required for modern organizations.
The right-skilling solution blends these complementary elements, and has proven particularly effective in healthcare. Two major health systems implemented this approach to develop essential roles including medical assistants, surgical technologists and radiologic technologists. With participation from over 400 employees across multiple states, these organizations realized savings exceeding $10 million, particularly in reduced contingent labor expenses for surgical technologists.
Right-skilling programs like these achieve success through a strategic combination of structured digital learning and supervised practical experience, resulting in streamlined training processes, higher program completion percentages and demonstrable operational benefits.
Personalized learning journeys: Connecting education to career growth
Organizations increasingly provide skills development—but offering learning opportunities isn’t enough. A critical component for right-skilling is delivering clear connections between educational investments and career advancement through personalized education paths.
While personalized education paths may appear complex and time-consuming, the key lies in a scalable approach. Instead of building from scratch, develop adaptable frameworks that combine proven foundational content with industry-specific contexts, scenarios and role-relevant applications.
Consider this example: David, a long-time IT technician, wants to pivot into cybersecurity. Through his company’s education portal, he sees a clear path: Build on his current skills, enroll in targeted courses and work toward a cybersecurity analyst role with greater impact and pay.
The right-skilling edge
Amid rising pressure to do more with less, right-skilling offers a strategic approach to talent development that delivers measurable business value. The companies that will thrive in the coming decade aren’t just filling positions. They’re building learning ecosystems that continuously develop the capabilities their business needs. In the right-skilling revolution, education isn’t just about closing skills gaps. It’s about creating a lasting competitive advantage.
