News Spotlight

New bill to curb AI managers. A Northern California lawmaker proposed regulating workplace AI, including banning AI-driven hiring and firing without human oversight (CBS News).

Workers fear becoming obsolete. FOBO is the growing workplace anxiety that AI, automation, and evolving job demands are outpacing employees' skills (Forbes).

Student loan debt impacts careers. Student loan debt impacts borrowers’ career choices, job satisfaction, advancement, and financial decisions long after graduation (Fast Company).

Stat of the Week

A new study finds that 60% of employees prefer a hybrid work environment compared to 33% who say exclusively remote and only 7% who say on-site only.

HR should prioritize creating flexible, hybrid work models that align with the clear preferences of most employees. With 60% favoring a hybrid environment, companies can boost engagement and retention by offering a balance of in-office collaboration and remote autonomy. This approach allows employees to benefit from face-to-face teamwork while maintaining the productivity and well-being of remote work. HR should also invest in the right tools and communication strategies to ensure hybrid teams stay connected, supported, and aligned. Organizations can foster a more satisfied, motivated, and high-performing workforce by listening to employee preferences and adapting workplace policies accordingly.

Deep Dive Article

Navigating the Frontline Worker Skills Gap to Retain Critical Expertise

The global workforce is at a critical inflection point. As mass retirements loom and younger workers question their future in frontline industries, businesses across sectors like retail and manufacturing face unprecedented challenges. The departure of experienced employees threatens to drain organizations of vital institutional knowledge, while the struggle to retain and upskill younger talent leaves businesses vulnerable to productivity collapse.

​New global research from Flip, the frontline employee super-app, in partnership with Workplace Intelligence, underscores the urgency of this crisis. The study reveals that 59% of frontline workers over the age of 55 plan to retire within the next five years, creating a massive skills gap that industries are ill-prepared to fill. Coupled with nearly half (48%) of Gen Z employees considering leaving these sectors due to inadequate training and limited career opportunities, the situation paints a bleak picture of the future workforce.

The implications are profound. With 72% of managers expressing a lack of confidence in their ability to retain the knowledge and expertise of retiring workers, the potential for widespread disruption is undeniable. As companies grapple with these challenges, proactive measures to capture, transfer, and build on existing knowledge will be essential to maintaining productivity and staying competitive.

The Looming Skills Cliff: A Workforce at Risk

The impending retirement wave is set to hit frontline industries hardest. Retail, manufacturing, and similar sectors rely heavily on experienced workers whose expertise is often undocumented, making knowledge transfer a daunting task. According to the research, 59% of frontline workers over 55 plan to exit the workforce within five years, a departure that will strip businesses of critical skills and institutional knowledge.

This mass exodus comes at a time when employee engagement is already at a historic low. Gallup reports that only 31% of US employees were engaged in 2024, the lowest level in a decade. Meanwhile, 17% of employees were actively disengaged, exacerbating productivity challenges and highlighting the growing disconnect between workers and employers.

The productivity impact of this knowledge gap is staggering. Frontline employees spend an average of 14 hours per week, amounting to 4.5 months annually, compensating for their colleagues' lack of expertise. In the retail sector alone, this inefficiency translates to an economic loss of $177.8 billion. As experienced workers retire, these costs will likely escalate unless businesses take swift action.

Training Failures and the Disconnect with Gen Z

While older workers prepare to leave, younger employees face their own set of frustrations. Flip’s study shows that 48% of Gen Z workers are considering leaving frontline industries entirely, citing poor onboarding, insufficient training, and limited career advancement opportunities as key reasons.

This dissatisfaction is compounded by a lack of adequate technology to support new hires. One in three frontline workers (30%) report that their companies lack the tools needed to effectively train and onboard employees. As a result, younger workers feel unprepared and undervalued, with 50% of Gen Z employees stating their contributions are overlooked because of their age.

Frontline managers share these concerns. A staggering 96% report skill gaps within their teams, making it difficult to meet performance targets. 90% of frontline managers miss their annual performance goals due to a lack of adequately trained staff. This skills deficit threatens not only individual businesses but also the broader economic stability of key industries.

The Role of Technology in Bridging the Gap

Addressing this crisis requires more than traditional training methods. Businesses must adopt innovative solutions to capture and transfer knowledge efficiently. Digital tools provide a powerful platform for documenting institutional knowledge and delivering targeted training, ensuring that expertise remains accessible even as experienced workers retire.

By leveraging technology, companies can streamline onboarding processes, offer personalized learning experiences, and create a collaborative environment where knowledge-sharing becomes part of the organizational culture. This approach not only mitigates the impact of retirements but also enhances employee engagement and retention by providing clear development pathways.

Preparing for the Future Workforce

The time to act is now. As businesses face the dual challenge of mass retirements and disengaged younger workers, the need for strategic workforce planning has never been more urgent. Investing in technology-driven solutions can help organizations capture critical knowledge, upskill their teams, and build a resilient, future-ready workforce.

To learn more about the findings and strategies for addressing the workforce crisis, download Flip’s comprehensive report on generational workforce shifts and the skills gap. By taking proactive steps today, businesses can safeguard their productivity, retain essential expertise, and empower the next generation of workers to thrive.

Thanks for reading — be sure to join the conversation on LinkedIn and let me know your thoughts on this topic!

Quote of the Week

"Hard things will happen to us. We will recover. We will learn from it. We will grow more resilient because of it."
​Taylor Swift