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Careerminds research

What companies lose by hiring over reskilling

Artificial Intelligence is reshaping the roles that exist within organizations, forcing them to make a decision: hire someone new or invest in developing someone already there. Our latest report explores how belief in existing employees is high, but organizations are still more likely to hire—at a significant cost.

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Explore some of the report’s key themes

Belief doesn’t match action

HR professionals
92%
People managers
88%

Believe employees could be reskilled for the roles AI is creating

Belief in redeployment is nearly universal. Turning it into action isn’t.

But hiring externally still outpaces redeploying

Hiring externally — HR
51%

Redeploying — HR
42%

HR professionals
43%
People managers
34%

Report limited visibility about who should even be reskilled

Confidence doesn’t mean clarity

Just 18% of organizations use any centralized system to track the skills their people already have.² Believing reskilling is possible isn’t the same as knowing who it applies to.

² Skills Visibility Report, TalentLMS, 2026.

Nobody agrees who’s driving it

Who has primary responsibility for planning AI’s workforce impact?

HR say: HR
63%
Managers say: senior leadership
35%
Managers who agree it’s HR
24%

0% of respondents in either survey said there’s no clear owner. Everyone assumes someone has it covered — they just don’t agree on who.

Hiring as a default: cost, time and retention¹

Hiring externally also takes longer and shows lower retention. Based on an analysis of roughly half a million hiring records.

More expensive than filling the same role internally
3–5×
Days longer to close a role externally
20
Internally promoted employees who stay long-term
70%
Long-term retention for lateral internal moves
62%

¹ The Josh Bersin Company, Internal Hiring Factbook

Unlock more insights

Download the full report to gain more insights into the redeployment gap and discover what organizations can do to make smarter people decisions in the face of AI-driven change.

Download the report

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