ENGLISH proficiency has become a critical workplace skill as businesses adapt to artificial intelligence, remote work and global collaboration, according to an international survey of human resources decision-makers.
The findings are detailed in the Toeic Global English Skills Report, which surveyed 1,325 HR leaders across 17 countries on how English-language skills affect hiring, productivity and competitiveness in the modern workplace.
More than nine in 10 respondents said English proficiency is essential to the success of their organization, while 92 percent said English skills among employees are more important now than they were five years ago.
The report said organizations increasingly see language proficiency as a strategic capability that supports communication, technological adoption and global business partnerships.
English skills remain vital despite AI
The study found that the rapid expansion of artificial intelligence has not reduced the need for English proficiency in the workplace.
Across four core language skills — reading, writing, listening and speaking — about six in 10 employers said AI cannot compensate for a worker’s lack of English proficiency.
Instead, employers believe AI adoption is increasing demand for English skills. Eighty-one percent of respondents said the integration of AI tools raises the need for workplace English proficiency, largely because many software interfaces, prompts and documentation are written in English.
Nearly nine in 10 employers said English proficiency is necessary to use AI tools effectively, including generating prompts, evaluating AI-generated outputs and navigating English-language interfaces.
Employers rely on language assessments
To evaluate language proficiency, organizations are increasingly using English-language assessments in hiring and employee development.
The survey found that 78 percent of employers use language assessments during recruitment or screening, while 71 percent use them before training programs for workforce development.
About two-thirds of employers also use assessments to evaluate promotion readiness and post-training results.
Standardized third-party tests are slightly more widely used than internally developed or informal assessments. Among HR leaders surveyed, 55 percent rated standardized tests as “very effective,” compared with 51 percent for internal assessments and 47 percent for informal evaluations.
Despite the growing use of testing systems, many employers still face challenges in evaluating English skills. Forty-four percent said finding candidates with strong English proficiency remains a pressing problem, while 68 percent said their organization lacks an effective way to screen new hires for English-language ability.
Impact on business performance
Employers reported that strong English proficiency contributes to improved business performance and international collaboration.
Among organizations that use standardized English assessments, 80 percent said they are highly satisfied with employees’ ability to build new business partnerships. Among organizations that do not use such assessments, the figure was 62 percent.
The report also found that communication barriers can directly affect customer relationships. Seventy-four percent of respondents said their organizations had experienced miscommunication with clients because of employees’ insufficient English proficiency.
As global markets become more interconnected, 86 percent of employers said companies whose employees lack English fluency face a competitive disadvantage.
Language proficiency also affects operational efficiency. Eighty-three percent of respondents said hiring candidates with weak English skills can increase costs through lower productivity, reduced retention and higher turnover.
Organizations that use standardized language assessments reported higher satisfaction levels in areas such as workflow efficiency, employee productivity and professional growth.
Demand expected to grow
The survey indicates that demand for English proficiency will continue to increase as companies expand internationally and adopt new technologies.
Eighty-one percent of HR leaders said growing competition in the job market will further increase the importance of English skills.
Most respondents also expect language assessments to become a standard part of recruitment within the next five years. Eighty-four percent believe companies will administer English-language assessments to all new hires during that period.
Companies are also allocating resources for language training and evaluation. Sixty-three percent of organizations said they spend at least $50,000 annually on English-language education and assessment programs.
Government policy may also shape future language requirements. While only 23 percent of employers said their country currently requires a minimum level of English proficiency to complete secondary education, more than half expect such policies to be introduced within five years.
Employers in regions with English proficiency mandates reported stronger business outcomes, including higher satisfaction with employee collaboration and professional development.
A strategic workplace skill
The report concludes that English proficiency is becoming a foundational capability in the global workforce.
As organizations adopt digital technologies and operate across borders, employers increasingly view English-language skills as essential for communication, innovation and long-term competitiveness.
Employees who can effectively use English while leveraging AI tools are expected to deliver better outcomes for both their organizations and their careers.