New research from Chegg, a global learning and workforce skilling company, reveals a growing crisis among U.S. employers in frontline-heavy industries over workforce readiness – and a systemic failure in how organizations are training their employees.  

Chegg’s Frontline Workers Skills Index, based on a survey of 1,000 employers and 1,005 employees across 10 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 at 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 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 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 (36%) and communication and teamwork (34%) as the two most important skills for long-term success – highlighting growing demand for both durable human skills and technical fluency. 

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 (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 service and hospitality, 57% of employers and 43% of employees reported they had considered leaving their role, the highest out of all sectors surveyed. 

The report also reveals a growing 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 increasingly 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. 

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%) said 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 said it was not effective, 51% of employees say training is too general or not connected closely enough to their day-to-day responsibilities. Employees also cited not enough hands-on practical learning (39%), insufficient coaching (34%), and weak managerial support (27%) as barriers to successful training outcomes.  

For more information, visit www.chegg.com.