skills gap

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Conquer the Skills Gap: How to Quickly Upgrade Your Reskilling Strategy

The pandemic has only accelerated our ever-growing skills gap. However, there’s a silver lining to the chaos we’ve experienced this year. People have proved to be remarkably resilient. People are still the best resources to take on the disruption and close the skills gap. This is especially true when you consider the volatility of the external talent pool.

Yes, technology is outpacing human skills. Simultaneously, educational systems struggle to keep up with the urgency of new skills needed. Higher education is both too slow and too costly for reskilling to be effective in the near term. That said, if history has taught us anything, it’s that technology adoption may cause short-term labor displacement – but in the long run.

To effectively reskill in this rapidly changing environment, organizations must harness their greatest resource for skills potential by looking internally. The challenge then becomes how companies approach a reskilling strategy. We often see a top-down process, where leaders throw content or training at employees and expect them to get to work. This approach to talent development has never been effective. Even worse, it will undoubtedly fail when applied to the unique circumstances employees face today.

Instead, talent leaders need to design a holistic people development strategy. One that utilizes integrated technology to find the delicate balance between fulfilling the needs of their employees personally while giving them the tools to be successful at an organizational level. Only then will employees truly be enabled to reskill effectively and execute the business strategy.

Anticipate Skills Needs

In a recent study, McKinsey states that 87% of companies say they are experiencing a skills gap – or will in the next few years. Of those respondents, only a few have an understanding of how to prepare for the skills they’ll need most in the future.

As we can tell from this data point, companies are well aware of the looming skills gap issue. But they are lost at sea when it comes to understanding what to do about it. From that same study, 3 in 10 respondents say at least one-quarter of their organization’s roles are at risk of disruption in the next five years by these trends.

If you don’t know how to meet the skills needed, your first reaction will be to look outside the organization. But that’s a concern when you consider the cost of hiring. According to a  SHRM article, research suggests that a new hire can cost as much as 50% to 60% of an employee’s annual salary, with total costs associated with turnover ranging from 90% to 200% of annual salary. Further, finding new talent that fits into your culture is a feat in itself. Efficiency is what matters most now. So what companies need to do is rally around upskilling their current employees.

Leaders must tap into their own network to understand industry trends. They must decipher the needs required now (or those that will be soon) to develop their staff. To gain insight into the skills employees currently have and the skills required to do their job, start with a skills gap analysis. From there, providing performance management technology and tools that integrate to support holistic employee development is key.

Integrate Effectively

Companies are working hard to accommodate dispersed employees by keeping them connected and collaborating. Rather than adding an assortment of tools that don’t talk to each other, organizations must create a comprehensive strategy that includes mentoring, engagement, learning, and performance.

Mentoring

Most companies have created or adopted some kind of mentorship program to improve job satisfaction, provide personal and professional development, and retain their top employees. However, most of these mentorship programs have become stale and bureaucratic. As many organizations have learned, these programs aren’t a one-size-fits-all solution. Access to coaching and mentorship should be a continuous process and suited to an employee’s personal needs.

Engagement

The pandemic shook up our work-life balance, and the flexible work environment took its toll on engagement. Finding a tool that provides constant communication to employees and leadership is critical — especially for those working remotely. Continuous engagement shouldn’t mean micromanaging, however. Instead, support the employee’s personal needs and provide them with a positive work experience.

Learning

After leaders have identified all essential skills, leaders can provide the resources and content that cater to individual needs. An integrated Learning Module System (LMS) can equip employees with a database of information that promotes a culture of knowledge and learning.

Performance

In a survey, Forrester reports 74% of firms say they want to be “data-driven,” but only 29% are successful at connecting analytics to action. For an organization and its leaders to see the big picture, performance management technology must have detailed analytics. After all, reskilling efforts wouldn’t be relevant if you couldn’t track back to the original development strategy. Only then can you ensure each individual has made progress.

Technology shouldn’t be a hindrance to employees wanting to upskill. By consolidating tools, you’re saving time from going back and forth between systems, simplifying the work for managers, and allowing quicker decision-making.

Assess and Invest in Your People

Not everyone is facing the same challenges right now, but managers are responsible for providing the tools and resources for each employee that enable them to be efficient and productive. Moreover, LinkedIn’s 2019 Workplace Learning Report shows that 94% of employees say that they would stay at a company longer if it simply invested in helping them learn.

Closing the skills gap is an unmistakable need right now. Clearing the obstacles for employees to fill those gaps is an action that leaders must take. Finding the right fit with an integrated performance management solution can enable employees to reskill effectively and efficiently.