According to a recent report by Korn Ferry, the global skills gap is worth $8.5 trillion, with an estimated talent deficit of 85 million workers by 2030.
The brewing talent shortage is a real corporate concern, with 87% of HR managers and L&D leaders agreeing to have experienced a skills gap within their organization or are expecting the same in the next five years, as revealed in a recent McKinsey Global Survey. However, this widening gap is not a people gap. While there are a lot of job seekers out there, what comes as a shocking fact is that companies are still struggling to close open positions, especially in the tech team.
Why Does the Skills Gap Exist?
With the advancements in disruptive new technologies such as cloud computing, artificial intelligence (AI), machine learning (ML), and automation, job roles and skills employers need are also changing. In addition to changing market dynamics, other factors contributing to the skills gap include lack of experience, inadequate employee training, poor recruitment, increased employee turnover, etc.
Therefore, to respond to this workplace skills gap, leaders need to rethink their employee learning and development strategies and make measurable efforts to build a skilled workforce ready for the present and future business challenges. That is why companies that invest in the right employee training generate 2x higher returns per employee than the ones that don’t invest.
What Can Employers Do to Address Skills Gap?
With so many market surveys being conducted and discussions taking place over the global skills gap, it is evident that there is an imbalance between the demand for skilled talent and the supply of people who can meet the demand. However, even though the shortage of certified professionals is overwhelming, organizations can do a lot to meet the crisis.
For instance, here is the list of essential steps that employers can take to resolve the existing talent crunch:
Skills Gap Analysis
The first step companies should begin with is to perform a skill assessment of their workforce and compare the skills they currently have with the essential skills business require to function seamlessly. A skills gap analysis will provide valuable insights based on which HR leaders can initiate further actions toward strategizing effective employee training programs.
Hire New Talent
Many companies believe in recruiting fresh talent to get a job done immediately because that’s easier and more convenient. But even in doing so, they need to be careful about the kind of people they hire. Recruiting people in a hurry can often lead to hiring wrong candidates who fail to deliver the skills you might be looking for in the long run.
Upskill Internal Team
Employee upskilling/reskilling is perhaps the most effective way to bridge the skills gap. Helping internal team members upgrade their skills boosts their performance which in return helps businesses achieve targets on time and meet revenue goals.
However, organizations must remember that just upskilling the current workforce and hiring new talent is inadequate to fill the skills gap. The need of the hour is a capability development framework that helps enterprises not just enhance employee skills but build their capabilities according to their existing skill assessment and upcoming project requirements.
Are your employees falling short of the skills needed to meet project deadlines? Is the growing skills gap becoming your worst nightmare?
Join CEO and Founder of CloudThat, Bhavesh Goswami, on the 21st of September 2022, from 3 pm to 4:30 pm, for a virtual round table conference with some of the industry leaders as they discuss the widening IT skill gap, its impact on businesses, and how building employee capabilities can be the possible solution to address the talent crunch.