61Percent of Gen Z say upskilling is the 1 reason to stay at current employer

India, 05 November 2025 – Deel’s Skilling and Upskilling Survey 2025 reveals that the vast majority of India’s white-collar professionals (96%) have upskilled in the past year, however the learning priorities and motivations differ sharply across generations. According to the report, Gen Z and fresh graduates are leading the skilling charge at 61% and 63%, respectively, with access to upskilling opportunities as a key retention factor to stay with an employer.

The younger workforce is also riding the artificial intelligence (AI) wave, with more than half of Gen Z (54%) and fresh graduates (57%) actively learning AI and data skills. Millennials are lagging behind with only 2 in 5 (40%) learning new skills. Meanwhile, Gen X (38%) continues to prioritize traditional domain expertise, focusing on core professional and functional skills over new technologies. This contrast highlights how India’s workforce is evolving at different speeds, and why employers must now build strategies that support continuous development across all age groups.

Generational divide in confidence and challenges

Two-thirds of Gen Z (66%) are confident that their skills will remain relevant over the next five years. Meanwhile, less than half of Millennials (48%) and just over a third of Gen X (36%) feel the same way. However, each group faces distinct challenges that hold them back from upskilling: Gen Z cites cost (31%), Millennials struggle with time constraints (35%), and Gen X points to limited employer support (29%).

“India’s workforce is entering a new era where motivation for learning is high, but the barriers differ for each generation,” says Mark Samlal, General Manager APAC at Deel. “By curating flexible and accessible learning programs that align with different life stages and work realities, employers can bridge the skills gap and strengthen retention and loyalty across generations.”

In-depth findings from Deel’s Skilling and Upskilling Survey 2025:

Upskilling patterns shaped by sponsorship and self-funding

The survey highlights clear generational and sectoral differences in how employees approach upskilling. While learning appetite remains high across the board, the method of upskilling, whether sponsored, self-funded, or free, varies significantly by career stage and industry.

• 36% participated in company-sponsored programs, while 33% pursued self-funded courses or certifications.
• Gen Z (52%), fresh graduates (54%) and entry-level professionals (47%) prefer employer-sponsored learning, seeking structured programs with tangible credentials.
• Millennials (39%) and mid-career professionals (38%) tend to self-fund their upskilling, investing in certifications that boost career growth.
• Gen X (27%) and senior professionals (34%) rely on free online courses, valuing flexibility and accessibility over formal credentials.
• Healthcare (58%), retail (53%), and education (43%) lead in company-sponsored programs, while travel & tourism (60%) and BFSI/Fintech (49%) professionals primarily self-fund their learning.

How employees discover and prioritize relevant skills

When choosing upskilling platforms, credibility and cost emerge as key decision factors, though priorities differ across generations. Younger professionals favor affordability and flexibility, while experienced professionals value recognized certifications that enhance credibility.

• 44% of employees value industry recognition or certification, while 20% prioritize cost and affordability when selecting upskilling platforms.
• Gen Z prioritize affordability (43%) over course credibility (19%).
• Mid-level and senior professionals value industry-recognized certifications, with 51% of Millennials and 57% of Gen X favoring credibility as their top factor.
• Learning platforms remain the top discovery source (27%), followed by job descriptions (24%) and employer or manager suggestions (19%).
• Gen Z (34%) relies most on learning platforms, while Gen X look at job descriptions (33%) and managerial guidance (27%), tied to organizational goals.

Upskilling as a retention lever: generational and career-stage divides in employee loyalty

Upskilling is shaping employee loyalty across India’s workforce. For many, the availability and quality of learning opportunities directly influence retention. Younger generations and early-career professionals are particularly driven by access to continuous skill development, viewing it as essential for career growth.

• More than 4 in 10 employees say their loyalty depends on the quality and usefulness of training provided. 37% would ‘definitely stay’ if their organization offered consistent upskilling opportunities.
• Gen Z (61%) is the most influenced by upskilling when deciding whether to stay with an employer. Freshers (63%) share the same sentiment, showing a strong link between learning access and early-career retention.
• Senior professionals (30%) with 10+ years of experience prefer other benefits over upskilling as a retention factor.
• Sector-wise, travel and tourism (75%) and healthcare (54%) employees are most likely to stay if offered upskilling opportunities.

Impact of upskilling on career progression and skill utilization

While upskilling translates to tangible career gains for some, many employees still struggle to apply new skills effectively. A notable share links their recent learning to pay increases, yet others say their newly acquired skills remain underutilized.

• 27% of Indian employees attribute recent learning to a pay rise, but 24% say their new skills are not being used.
• Millennials lead in outcomes: 37% report receiving raises after upskilling, especially in Travel & Tourism (52%) and Educational Services (48%). In contrast, over half of Hospitality workers (56%) say their new skills aren’t being utilized.

Shifting hiring priorities: skills vs degrees

While skills increasingly shape hiring, degrees continue to matter, especially in entry-level roles across sectors.

• Half of Indian employees (51%) say companies now combine skills and degrees in hiring, while nearly a third believe skills outweigh formal qualifications.
• Gen Z (64%) sees the market as hybrid, valuing both, while Millennials (47%) lead the skills-first trend.
• Among freshers (0–1 years), 67% say hiring depends on both skills and degrees, dropping to 44% for those with 5–10 years of experience.
• Sector-wise, Professional Services and Educational Services (≈75%), and Travel & Tourism (71%) value a balanced mix of credibility and capability.

AI upskilling and employer support: A generational and sectoral divide

AI learning is accelerating across India’s workforce, but enthusiasm and employer support don’t always align.

• 41% of employees are actively building AI/data skills, with Gen Z (54%) and freshers (57%) leading the charge, followed by Millennials (40%). Meanwhile, Gen X (38%) are prioritizing domain expertise over new tech.
• Retail (55%), Educational Services (50%), and Healthcare (46%) show the highest AI learning momentum, fuelled by rapid digital transformation.
• Only 36% of employees say their employers actively support AI upskilling, while another 35% either feel they’re largely on their own or are uncertain about receiving enough support.
• BFSI & Fintech (57%) lead in employer-led AI training, while two-thirds of professional services employees (66%) report limited institutional support.

Awareness of government-led upskilling initiatives among Indian workers

Awareness of national skilling programs remains limited, though employees are becoming more attuned to government-backed digital learning efforts. Engagement, however, continues to lag behind awareness.

• Only 21% of employees are aware of e-Skill India (NSDC), with similar awareness levels across Gen Z, Millennials, and Gen X.
• Future Skills Prime and AI Skilling for CSC Operators each see 16% awareness, reflecting moderate visibility.
• Postgraduates show higher familiarity, with 29% aware of Pradhan Mantri Kaushal Vikas Yojana and 21% of the Skill India Digital Hub, compared to graduates.