In 2026, skills are at the top of everyone’s agenda. The way we work and the skills we need to stay ahead are changing faster than most organisations can train for. Remote and hybrid working, developments in AI and changing business needs mean that six in ten workers will need upskilling or reskilling by 2027 (World Economic Forum). However, many businesses are still struggling to reach all these employees effectively.
So, what are forward-thinking SMEs doing differently to overcome this challenge?
The skills gap is affecting all sectors
While upskilling has always been a key part of driving performance, the challenge in 2026 is on a totally different scale. Every sector is being transformed by new technologies and it’s becoming increasingly difficult to keep pace.
The businesses that can close the skills gaps quickly and consistently are the ones that will stay competitive. Those who can’t will fall behind not just in tech adoption, but also in productivity, compliance and innovation.
This is being felt across every sector, for organisations of all sizes:
- Manufacturing firms are upskilling staff in data literacy as factories adopt smarter automation
- Financial services firms are using AI tools for fraud detection and risk analysis
- Healthcare providers are training teams on digital records and remote diagnostics
- Retailers are equipping frontline staff to use analytics for smarter inventory and customer insights
According to LinkedIn’s 2024 Workplace Learning Report, nearly half of learning and development leaders believe their company is facing a skills crisis, with 49% agreeing that their executives are concerned that employees do not have the right skills to execute the business strategy.
However, this isn’t a problem that can simply be solved with a one-off workshop or by training a few specialists. SMEs need the ability to upskill at scale – reaching every team across roles and locations – consistently and efficiently.
What smart SMEs are doing differently with learning
The good news is that small to medium enterprises aren’t powerless in the face of these challenges. Smaller businesses are often more agile, closer to their teams and faster to adopt new ways of working than larger enterprises, which can be weighed down by bureaucracy. This makes them well-positioned to turn learning into a competitive advantage with the right approach.
According to the UK Government’s SME Skills Horizon report, 70% of SMEs are planning to invest in upskilling their workforce this year. Yet a Chartered Institute of Managers report found that fewer than one in three SME employees had received training in the past year, despite 82% wanting to upskill.
1. Integrating learning in the flow of work
It’s not uncommon for learning and development to feel like a distraction from day-to-day work. We’ve all sat through slides of compliance modules just to check them off the list and forget about them until the following year.
The concept of ‘learning in the flow of work’ was coined by learning expert Josh Bersin and refers to delivering learning at the moment it’s needed (i.e. learning that’s embedded within an employee’s actual workflow). For example:
- A retail associate receives a pop-up tip in the POS system about how to handle a return from a loyalty customer, right as the transaction is happening.
- A finance team member receives a push alert via Microsoft Teams with a link to a three-minute training module, directly from the company’s learning management system (LMS).
- A customer support agent sees a pop-up checklist from the company LMS when a certain ticket tag is selected in Zendesk (e.g. to remind them of refund policy wording).
Smart integrations with various systems enable learning to become an integral part of everyday work tools, eliminating the need to switch platforms or remember multiple login details. For SMEs with limited time and budget, automation creates an impact without the need for overhauling operations.
More SMEs are recognising the potential of this approach and are turning to learning management systems to make it work. 83% of organisations now use a learning management system (LMS) and 72% say doing so gives them a competitive advantage. For these companies, this means training no longer needs to pull employees away from their tasks; instead, it can be woven directly into their daily workflow, helping people to learn faster, apply knowledge immediately and drive better performance on the job.
2. Using data to drive decision making
For too many organisations, training is simply a box-ticking exercise. Perhaps a new onboarding pack or compliance session is rolled out, a few boxes are ticked and everyone moves on, hoping it makes a difference.
Tracking whether someone completed a course or attended a training session is a start, but it doesn’t tell you whether the learning actually worked. This is why, in 2026, forward-thinking business owners are asking: “Is this training actually making my team and my business better?”
To answer this, you need to go beyond ticking boxes and look for signs of applied learning – that is, the real-world behaviours and improvements that show people are using what they learned on the job. This might look like:
- Fewer mistakes or safety issues after someone completes compliance or process training.
- Improved KPIs, like more sales conversions, faster customer support resolutions or fewer support escalations.
- Faster onboarding, with new hires reaching productivity goals in less time.
- More internal promotions, because employees are successfully gaining the skills needed to grow into new roles.
If you’re struggling to gather the data you need to link learning outcomes with performance, many businesses benefit from using an LMS to track progress, identify skills gaps and spot opportunities for targeted development early. For example, a business might use LMS reports to see that customer service agents who complete a specific product training module resolve queries 20% faster, highlighting both the value of training and where to scale it next.
According to PwC, data-driven organisations are three times more likely to report significant improvement in decision-making. With the right analytics, you can move your business from reactive to proactive and help develop the skills your business needs in the future, not just today.
3. Using skills intelligence as a strategic asset
In 2026, your next growth move won’t be determined by your budget, but by whether your team has the skills to move forward. Imagine your business lands a new major client; the kind of contract that could potentially double your revenue. However, to deliver, you need staff trained in a new system, capable of managing tighter compliance and ready to lead larger projects. And you need all of it yesterday.
According to McKinsey, 87% of businesses are already experiencing or expect skills gaps in the next few years. SMEs are hit harder because they can’t hire their way out. New technologies, evolving customer demands and market shifts change not just what you offer, but who you need if you’re going to adapt. And without visibility into what your people can do (or what they need to learn), you’re operating without a clear view of your team’s capabilities.
SMEs might not have large HR teams or deep internal pipelines, but they do have one key advantage and that’s speed. If you can see where your talent gaps are and can move fast to fill them, you stay competitive. If not, your growth stalls.
One study highlights an electronic-component manufacturer — one of 56 included in the study because it outperforms its sector average in terms of total shareholder return (TSR) and labour productivity growth. The manufacturer achieved double-digit increases in its number of internal promotions by designing a custom training programme to equip workers with the right skills to advance their careers.
An upskilling programme underpinned by clear and transparent competency frameworks – detailing which skills are needed in each role, and to what degree – provide a structure that will nurture both continuous improvement and organisational culture. This is why more SME leaders are investing in skills intelligence, using tools like modern LMS platforms to map out capabilities, track development and build internal pipelines for future roles.
Is an LMS the next step for your SME?
Modern LMS platforms are no longer just for large corporations. Many serve as lean, flexible and cost-effective solutions that give SMEs the structure and visibility they need to train teams consistently, no matter the size or location.
Here’s what the right LMS can do for your business:
- Upskilling at scale with personalised learning journeys and competency frameworks mapped to key roles
- Learning in the flow of work, integrated with everyday tools like Slack, Microsoft Teams, your CRM or HR software
- Progress tracking with real-time reporting on who’s developing which skills and where the gaps are
- Succession planning by mapping employee strengths and building internal pipelines for growth
While budget and cost is often top of mind for SMEs, businesses that invest in training see, on average, 24% higher profit margins than those who don’t (Association for Talent Development).
With the right LMS, you’re creating a more agile, capable workforce ready to take on what’s next. Whether you’re onboarding new hires or preparing for a major shift, an LMS helps you build the skills today that will fuel your growth tomorrow.
Explore how an LMS from Synergy Learning can help your SME upskill at scale, boost performance, and drive real ROI – without the complexity. Contact Synergy Learning today.