Are you concerned about the skills gap and how it might impact your organization’s future success? According to McKinsey, around 90% of companies worldwide are experiencing skills gaps today. These gaps represent the critical missing pieces in your workforce, the difference between the skills needed to do a job and the skills your employees actually possess. These gaps can manifest in various forms, from a lack of technical expertise to deficiencies in soft skills like communication and collaboration, making it challenging for companies to be productive and successful. The good news is that you can take proactive steps to address the skills gap and ensure your workforce is prepared for the jobs of the future.
By 2025, it’s estimated that 1 in 2 workers will need reskilling. As the pace of digital transformation and automation accelerates, the skills in demand are shifting, and you’ll need to tackle this challenge head-on to succeed. Identifying the current and future skills needed in your organization, and then investing in targeted reskilling and upskilling programs, will be crucial in the years to come.
Key Takeaways
- Around 90% of companies worldwide experience skills gaps today, which can hinder productivity and success.
- By 2025, 1 in 2 workers will need reskilling due to the accelerating pace of digital transformation and automation.
- Addressing the skills gap requires a multi-faceted approach, including identifying current and future skills needs and investing in reskilling and upskilling programs.
- Building a strong learning culture that encourages continuous development is crucial for addressing the skills gap.
- Staying ahead of job market trends and forecasting future skills needs will help you prepare your workforce for the jobs of the future.
Understanding the Skills Gap Challenge
The skills gap is the difference between the skills needed to do a job and the skills a person or group of people actually have. This can lead to productivity and performance issues for organizations. As companies accelerate their pace of digital transformation and automation in response to the Coronavirus pandemic, a shift in the in-demand workforce skills is likely to occur over the next five years ending 2025.
What is the Skills Gap?
The World Economic Forum (WEF) report warned that by 2025, workers across the world faced the “double disruption” of job losses caused by increased automation and the economic impact of the Coronavirus pandemic, which could displace an estimated 85 million jobs. Though 97 million new roles are likely to be created during this period, displaced workers will need to be reskilled and upskilled to take them on, and skills gaps will continue to be high in the run-up to 2025.
Impact of Automation and Digital Transformation
The rapid advancements in digital transformation and automation technologies are reshaping the job market and the workforce skills that will be in high demand. Organizations must prioritize talent development and ensure their employees have the necessary skills to navigate this evolving landscape and contribute to the company’s success.
How do I address the skills gap for jobs that will be in demand in 2025?
To effectively address the skills gaps in your organization, you need to first identify the current skill sets of your workers and compare them to the skills that will be needed in the future. This can be done through methods like skills assessments, performance data analysis, employee/manager feedback, and learning platform data. Once you have identified the skills gap, the next step is to invest in reskilling and upskilling programs.
Identify Current and Future Skills Needs
By conducting skills assessments and analyzing performance data, you can gain a clear understanding of your current workforce’s capabilities. This skills forecasting exercise will help you identify the gaps between your existing talent and the skills that will be in high demand for future jobs. Gathering feedback from employees and managers can also provide valuable insights into the learning and development needs of your team.
Invest in Reskilling and Upskilling Programs
According to the World Economic Forum (WEF) report, 53% of executives say that building skills is the most useful action to close the skills gap. Reskilling and upskilling training programs should align with your business goals, incorporate diverse learning and development methods, and provide opportunities for practice and reinforcement. Additionally, organizations need to create a strong talent management culture that encourages continuous development and applies learning to daily work.
| Strategy | Description | Benefits |
|---|---|---|
| Identify Skills Gap | Conduct skills assessments, analyze performance data, and gather employee/manager feedback to understand current and future skills needs. | Enables targeted workforce training and talent management initiatives to address specific gaps. |
| Invest in Reskilling and Upskilling | Develop reskilling and upskilling programs that align with business goals and provide diverse learning opportunities. | Helps employees acquire the necessary skills to thrive in future roles, improving career development and talent pipeline. |
| Foster a Learning Culture | Encourage a strong learning and development culture that supports continuous skill-building and applies new knowledge to daily work. | Promotes a agile, adaptable workforce ready to meet evolving future job skills needs. |
Conclusion
Addressing the skills gap for jobs that will be in demand in 2025 requires a comprehensive approach. First and foremost, it’s crucial for organizations to understand the current skills of their workforce and identify the skills that will be needed in the future. This can be achieved through skills assessments, performance data analysis, and forecasting industry trends. By staying on top of workforce development and talent pipeline insights, you can better prepare your team for the jobs of the future.
Once you’ve identified the skills gap, the next step is to invest in robust reskilling and upskilling programs. These learning opportunities should align with your business goals and provide diverse, engaging methods to help your employees continuously develop their skills. Building a strong learning culture that encourages career growth and continuous learning is also essential for success.
By taking a proactive, multi-faceted approach to addressing the skills gap, organizations can position themselves for long-term competitiveness in the rapidly evolving job market. With the right strategies in place, you can ensure your workforce is equipped with the necessary skills to thrive in the jobs of 2025 and beyond.