AI Skills Gap Limits Companies in Tackling Employee Retention
Employee retention tops the list of challenges for over half of Canadian HR leaders, with 51% naming it their primary concern. Yet, according to Capterra’s 2025 HR Software Trends Survey, many companies already have access to a solution through AI-powered HR software. Organizations using AI features report a 39% improvement in employee retention, compared to just 26% among those not leveraging AI tools.
Despite these promising results, a significant barrier remains: an AI skills gap. Nearly 43% of HR leaders say their teams lack the necessary AI expertise, preventing them from fully benefiting from available technology.
The AI Adoption Gap
While 67% of Canadian organizations have AI capabilities included in their HR software, only 41% actively use these features. This hesitation means many companies miss out on tools that could directly address their biggest challenges.
Upskilling Challenges
Training stands out as a major obstacle. Forty-four percent of HR leaders identify upskilling current employees as a top operational challenge. Additionally, 46% highlight training new users on HR software as a key concern. With 63% expecting training costs to rise, effective strategies for employee development are essential.
Concerns Around AI Risks and Security
Concerns about AI’s risks contribute to the slow adoption. Forty percent of HR leaders find it difficult to assess AI’s value versus its risks, while 42% struggle to understand how AI makes decisions. Security also remains a critical factor, with 60% prioritizing it when selecting new HR software.
Addressing the AI skills gap through targeted training can help HR teams make better use of AI tools to improve retention. For those looking to build AI expertise, exploring specialized courses can be a practical next step. Resources like Complete AI Training’s HR-focused courses offer tailored options to bridge these skill gaps.
For a deeper look at the survey findings, read the full Capterra 2025 HR Software Trends Report.
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