Skilling

Why Skilling Investments Directly Correlate to an Organization’s Bottom Line

Sponsored by: Cornerstone

Learning is the most important thing we do at work. 

I know that’s a bold statement. I’m sure you’re already trying to think of things you do at work that are more important than learning. But the truth is that learning is the foundation of how we grow and perform. 

Think about the learning opportunities at your organization. Are there company-sponsored places you can go to learn? Or do you simply rely on Google and YouTube? 

The reality is that many organizations rely on employees to find their own learning and development opportunities. So, what’s the problem with this? 

The problem is that this lack of prioritization for development opportunities at work won’t get us through the current talent and skilling shortages many industries are facing or help us grow into the future of work. 

These aren’t problems that will go away on their own, either. In fact, the current skilling and talent shortages are keeping business leaders up at night. According to a recently published Cornerstone People Research Lab survey, 48% of all employers placed skills and talent shortages within their top three concerns over the next three years. 

This urgency from business leaders is further evidenced in PwC’s Annual Global CEO Survey, where 74% of CEOs reported being concerned about the availability of key skills. 

Cornerstone’s survey also found that while ‘laggard’ and ‘average’ organizations show a consistent employer-employee confidence gap in skills development, high-performance organizations are ahead of the game. 

Let’s explore how high-performance organizations approach skills development and why it works.  

High-Performance Organizations as a Model for Success

High-performance organizations put their money where their mouth is. For example, when asked when they would prioritize skills investments for their company, 72% of respondents reported that prioritization was expected to occur within the next year or had already begun. Meanwhile, 68% of lagging organizations plan to invest in skills development within three to five years. 

According to our research, high-performance organizations aren’t just investing in one or two learning and skill development areas either. Nearly all high-performance organizations are prioritizing learning and development technology, learning content, formal education or university learning, mentoring and coaching programs, and on-the-job skills training.  

Meanwhile, only 34% of lagging organizations prioritize formal education, and 52% invest in mentoring and coaching programs. There’s more than a 30-point gap between high-performance organizations and laggards. 

High-performance organizations are also increasingly adopting an internal talent marketplace mindset. They are using skills data and skills development programs to promote internal mobility. Ninety-seven percent of high-performance organizations agreed that the role of talent development is to improve employee growth. Employees also agree – 82% of employees at high-performance organizations reported feeling that their company had insight into the gaps between current skills and those needed in the future. 

Developing internal talent is the number one way high-performance organizations plan to fill skills gaps. Meanwhile, lagging organizations plan to hire externally to fill those gaps over the next three years. 

Up-Leveling Your Skilling Strategy 

So, where do you start in up-leveling your skilling strategy? 

First, take inventory of the skills currently available in your organization. Then, predict what skills are most important to the future success of your organization. Once you understand what skills gaps exist, you can chart a plan to help close them. 

To do this, AI-based skills assessment and pathing technology can help identify those gaps between existing and future skills and make intelligent job and career recommendations based on skills.  

Once you connect skills development to career growth, employees can more easily chart their desired career path by seeing an integrated view of the skills needed and how it translates to internal mobility. 

This kind of growth investment isn’t just good for your people – it’s good for business. According to a 2021 Gallup survey in partnership with Amazon, skills training is one of the top perks younger workers look for in a new job. Further, 61% of respondents also said that upskilling opportunities are important for staying at their job.  Seventy-one percent agreed that job training and development increased their job satisfaction. More satisfaction leads to better retention. Better retention means better success and outcomes for a business.

The takeaway is simple. When organizations adopt an internal skills marketplace and an internal-first hiring mindset, employees stay engaged and happy, and your business increases its chances of successfully navigating the future.

Workforce Expectations

New HR Processes to Meet Workforce Expectations

The Great Resignation was a very real and present concern for HR professionals in 2021. In December alone, 4.3 million workers left their jobs. As the labor pool shrunk and companies faced skill shortages, there was a palpable power shift among employees. Workers knew they were in demand and could ask for more: more flexibility, more money, and more perks. Average hourly earnings have increased 4.8% year over year as a result.

Companies were already faced with competition for talent before the pandemic. This threw HR professionals in even more of a tailspin when they had to find new ways to meet these workforce expectations while developing work-from-anywhere policies practically overnight.

Although the labor force participation rate shows signs of bouncing back in the coming years — in fact, employment is estimated to increase from 153.5 million to 165.4 million by 2030 — HR must come up with innovative ways to attract and retain talented employees if they want to keep up. That means changing their HR processes to meet workforce expectations.

Meeting Workforce Expectations With New HR Processes

With a tight talent pool, HR professionals have to get creative, embrace new technologies, and find fresh ways of attracting and retaining talented employees. To do this, HR teams should stay open-minded to more progressive employment arrangements. This could include using contract, contingent, and gig work. In some instances, they should even consider employing robots, automating HR processes, and reskilling employees. 

As workers’ expectations change regarding work flexibility and other norms, the onus is on HR leaders to update the following HR processes:

1. Productivity Measurement

Gone are the days when measuring employee productivity meant simply looking at an employee’s time card or hours worked. In a work-from-anywhere environment, managers must shift their mindset to managing employees based on results rather than on time spent sitting at a desk.

It’s up to HR to teach managers how to measure and monitor employee productivity without physically seeing them in their chairs. To accomplish this, HR must clearly define job descriptions. Additionally, managers must communicate expectations. Most importantly, HR should encourage managers to let employees have the autonomy they need to do their jobs while still providing coaching on timelines, issues, and opportunities.

2. Pay Practices

Employees want not only the flexibility to work remotely, but also more flexibility as to when they work. Although 70% of executives want to return to the workplace, only 40% of workers do. Organizations that have embraced a remote environment to meet workforce expectations are now faced with the “work from anywhere” problem. Sure, it’s wonderful that employees can live anywhere in the country — or even the world. But, most HR teams are not set up for payroll, benefits, compliance, or taxes everywhere to support this. This can be a major roadblock when it comes to attracting and retaining talented employees.

In addition, HR leaders have to get ahead of questions from employees about cost-of-living adjustments for cities with higher costs of living. What is your philosophy and compensation structure? Does it allow you to attract talent across all markets nationwide? For example, consider tech companies based in San Jose, which is a tech industry hotspot. Should employees get paid more because that’s a high-cost-of-living area? Or not because they have the option to move? These questions can get quite philosophical and are up to your HR team and other company leaders to decide.

3. Onboarding Solutions

For new employees, the “computer setup” checkbox for onboarding has evolved over the years. Just a few decades ago, someone from IT came to connect the new employee’s system and set up their email at their desk. Now, it’s a UPS package delivery. Then, a two-hour phone call where IT instructs the employee on how to set up and configure settings for their workgroup. The employee needs to learn the ins and outs of how to use the collaboration tools and where to find the information needed for the job.

In addition, new employees might never even meet their HR representative in person to complete paperwork. These situations open up a need for remote onboarding tools. Tools that offer e-signature capabilities and advanced cybersecurity to prevent private information from being breached. They also require a solution for remote I-9s. (Current USCIS guidelines still require a person to provide HR with original ID documents to show proof of eligibility to work in the U.S.) Above all, you should determine how to integrate current tech tools with these new tools to make onboarding remote workers smoother for all involved.

4. Career Growth Opportunities for Employees

Even before the pandemic hit, employees looked for development and growth opportunities in their roles — particularly Millennials, who are known to leave jobs that lack such opportunities. HR can encourage employees to stay with the company longer by offering new forms of recognition and benefits, like upskilling.

Now, more than ever, employees want to know what competencies they need to learn to grow in the organization. They also want to know how these skills will benefit them in their future careers. To meet this need, work with managers to understand the competencies required for each role. Outline a clear path from one position to the next on the hierarchy.

Workforce Expectations for the Future

Meeting changing workforce expectations to mitigate the labor shortage requires updated HR processes that follow new trends in HR practices. Although this HR transformation process can seem overwhelming, the benefits will pay dividends in attracting and retaining talented employees — and securing your company’s future growth.

     

Forecasting the Future of Work

Forecasting the Future of Work

Podcast Sponsored by: QuantumWork Advisory

According to McKinsey, the pandemic has accelerated existing trends in remote work, e-commerce, and automation. As a result, up to 25% more workers than previously estimated could potentially need to switch occupations. Both employees and leaders are being driven to upskill. A recent study from the Sloan Management Review found that only 7% of respondents were led by digitally competent teams. So what does the future of work hold? How can we ensure that we’re prepared for it?

Our Guest: Mark Condon

On our latest #WorkTrends podcast, I spoke with Mark Condon, managing partner and founder of QuantumWork Advisory. He is a pioneer in the talent and workforce sector with over 20 years of global experience with both startups and multinationals.

There are maturity traits found in good digital leadership. Mark explains:

Leaders need to engage and protect their organization. When developing new business models, those need to be protected from the broader business. Another is the culture of inquisitiveness and trust, but you have to balance it with rigor. You want your organization to be curious, to have an exploration culture, and one where no one gets fired for experimenting, but you also need the discipline behind that.

Young Leaders in the Digital Age

Companies are balancing the use of technology implemented and used by people. So when we talk about young leaders, what are they facing when it comes to leading in the digital age? Mark:

It’s confusing out there. There are so many great technologies that appear to be wonderful in their own right. But there’s a problem in that digital transformation is really about technology. The technology in a lab looks wonderful, but we have to use it in our businesses. And our businesses are full of people, policies, and processes, which may not help the technology work. So how to make the tech work in practice is a people-centric issue.

Mark also explains:

People used to choose technology on the basis of functionality, but without it being a great user experience, it’s kind of a waste of time. People need to be able to want to use that technology and it has to be easy to use.

Diversity, Equity, and Inclusion – The Role of Technology

Technology plays a significant role in DEI and talent acquisition and retention strategies. Mark confirms:

This is a huge topic. Around 2020, about $50 billion was going to be spent on the DEI tech vendor space and would grow to around $110 billion by 2024. This is a massive investment.

Technology has its advantages and disadvantages. 

AI is a great enabler of matching, but it also can have a dark side in that if it’s not fed the right data, it can actually make the bias worse. So the problem with AI is it can make things a lot more efficient, but it also can magnify the problem.

The Gig Economy

With the rise of the gig economy, remote work, and flexible work arrangements, the future of work has taken a fork in the road. So where are we going with all this? Mark explains:

A lot of people suffered burnout through COVID, and this is continuing. The burnout rate has been quite damaging for people. People have had enough. I think they’re asking themselves, “Why am I working so hard.” I think a few people are getting off the merry-go-round, not to say all, but I think some are, certainly.

I hope you found this recent episode of #WorkTrends informative and inspiring. To learn more about QuantumWork Advisory and digital transformation in the field of talent and workforce strategy and delivery, please visit https://www.quantum.work/advisory.

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