We’re often asked to comment on a variety of HR topics in the media and recently we were asked to talk about the impact of the current economic challenges that organisations are facing when it comes to driving their own skills agenda. You can see the article for People Management here. Given that it is so pertinent to our current campaign around skills-based organisations, we thought we’d share some of the insight in today’s blog.
To remain competitive, 54% of the workforce requires upskilling. This is projected to rise to 90% by 2030, leading to a collective $8.5 trillion loss in potential annual revenue if not addressed.
Governments have a role to play bringing together education at all levels to address the skills gap, which has been a leading policy area for the new Labour government. So, beyond government initiatives, what can organisations do to future-proof the skills they need and what practical steps need to be taken?
At LACE, we believe becoming skills-powered can be as simple or as complex as you make it. Whether you’re interested in the foundations or want to jump to our quick-start guide, there is a right approach for every business context.
In our article for People Management, we outline three clear steps businesses can take to turn a potential crisis into a competitive edge:
- Identify areas of your business where skills are evolving
- Remove barriers to entry for ‘hot’ skills
- Shift leadership mindsets to share and build skills as a component part of work
1. Identify areas of your business where skills are evolving
The first step to tackling skills gaps is to understand the skills within your organisation, particularly where skills needs are changing.
It is important to look at internal and external data to build a holistic view of skills supply and demand. Using external data sources that utilise AI can accelerate the process, but this needs to be matched with your internal skills supply and demand. We recommend involving business leaders and experts to give a true picture of where skills gaps lie. Standard Chartered Bank’s initiative showcases how leveraging internal data can help identify adjacent skills and redeploy talent effectively. Using a data-driven approach enables you to target your skills solutions that deliver the most immediate impact – often using pilot programmes and scaling.
2. Remove barriers to entry for ‘hot’ skills
To attract and develop talent in ‘hot’ skill areas, businesses need to break down barriers to entry.
Organisations can be more progressive, removing barriers to diversify the talent pool by removing the “experience-driven, graduates only” approach.
Fascinating case studies of organisations finding untapped talent pools are emerging, for example, ex-NHS and care professionals finding success in the retail sector (which we recently talked about with Craige Heaney on an HR on the Offensive live stream here) due to their ability to connect with and manage interpersonal interactions.
To benefit from the untapped talent pools, organisations need to embrace those with disabilities, caring responsibilities or simply changing professions alongside helping people return to the workforce. Proactive initiatives to attract people back into the workforce can pay dividends. The skillsets that can be found are vast; veterans, those who have taken time out to have families as well as the ‘forgotten’, those who have become homeless, school leavers and even those who have criminal records, as pioneered by James Timpson, new Minister of State for Prisons, all have diverse skillsets to benefit from.
One famous example from HMP Brixton, Clink restaurant, provides upskilling opportunities for inmates and works with employers to secure jobs upon release. To open doors to these talent pools will require an overhaul of compliance-based, risk-averse practices to a potential-based approach, previously reserved for early careers.
3. Shift leadership mindsets to share and build skills as a component part of work
Leaders have an important part to play in tackling skills challenges, from understanding the skills required, removing barriers to entry and also by championing re-skilling.
Work is changing at such a rate that re-skilling is now ‘part of the job’. Leaders have a responsibility to embed learning into how work gets done. It is by no means an easy task, delicately balancing how work gets done today but also predicting how skills need to evolve to meet future needs.
Technology and AI are here to help, but to make the most of the talent pool, leaders need to engage their workforce to close their skills gaps enabled by a suite of skills-development initiatives available to them.
Be clear on your business challenges and solve for them
Becoming a skills-based organisation isn’t a cure-all for every business challenge, nor will it automatically address the economic slump.
There are plenty of areas where a skills approach isn’t going to push the needle. This is why you need to be crystal clear on what business challenges are at the top of the agenda for your C-suite and identify which of those you can address with a skills approach. Becoming skills-powered across the organisation doesn’t happen without putting in the groundwork, so start with a clear value case for the work.
It doesn’t need to be a marathon, but short sprints to tackle particular problems – or you risk one of the most common barriers to utilising skills approaches: too much upfront work, with limited return on investment.
Explore these additional resources:
The foundations of a skills-based organisation
Your quick-start guide to building a skills-based organisation
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