Closing the skills gap

A practical guide for employers and employees

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INTRODUCTION

IDENTIFYING THE GAPS

UPSKILLING OUR WORKFORCE

SHIFTING MINDSET

REBOOTING RECRUITMENT

CONCLUSION

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IntroductionTo keep the wheels of work turning,

we must act now to close the skills gap. Defined as the difference between the

skills needed to do today’s jobs and what the workforce can actually do,

this void in talent is significant, but can be reduced with the

right effort.

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What’s creating the skills gap? Several colliding factors. The most critical is the increasing handover of jobs to automation and AI, and an education system that no longer adequately prepares people for the roles that exist today, or the ones that will tomorrow.

Closing this gap is fast becoming a top priority for employers. Without the right skills, it’s impossible to keep up with the rapid pace of digitalisation and change that’s occurring across every industry. Meaning that a competitive edge can’t be maintained.

Businesses must move beyond purely tactical steps towards a mindset which embraces the new workplace technology is creating. By adopting the right strategy, we can foster the best environment to thrive.

Individuals also risk becoming unemployable. So, what practical steps do we need to take to close the gap? Two key areas have been identified: reskilling and upskilling plus smart recruitment.

In this guide, we look at how employers can go about identifying the skills gaps in their business, and why individuals should do the same. Plus, we recommend the actions that you can take to successfully minimise the deficit.

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Identifying the gaps

Before attempting to close the gap, it’s important to identify which skills are

lacking. Research to date identifies two broad skill sets in highest demand –

digital skills and soft skills – with the ideal candidate having a

combination of the two.

DIGITAL SKILLS

SOFT SKILLS

SKILLS GAP ANALYSIS

With machines on the rise, the demand for digital skills is also increasing. A report commissioned by the National Broadband Network (NBN) forecast that by 2030, 50% of jobs will require high-level programming, coding and software design skills.

87% of Australian CEOs say they needed to strengthen soft skills alongside their digital skills. These include distinctly human capabilities such as creativity, complex problem-solving, people management, emotional intelligence, decision making and negotiation. With this knowledge, educational institutions can and are beginning to take action. For example, we’re now seeing universities offering degrees in subjects such as AI and machine learning, plus a new focus on soft skills. In addition, businesses and individuals also need to help themselves. To do this, they must go one step further to identify their own specific capability deficits.

The best way for employers to zone in on gaps is to carry out a skills gap analysis. This should be done at two levels: individual and team. Employee surveys, interviews and performance reviews can help identify existing struggles. Upcoming projects and strategy should be considered to pinpoint future gaps. Once this information is collected, it should then be mapped and used to inform solutions. At the same time, employees need to start performing an honest analysis of their own capabilities to see where they’re lacking.

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According to PwC’s 21st CEO Survey, 75% of Australian CEOs are

worried about the availability of the identified key skills needed to remain

competitive. While in New Zealand, this concern over key skills is viewed as the second biggest

threat to growth.

Upskilling our workforce

THE VALUE OF TRAINING

Upskilling and reskilling of the current workforce is one of the two major solutions to the skills gap being suggested, and both businesses and individuals need to play part in ensuring this happens. But what do they need to do to step up?

It’s time to start investing in ongoing training and workplace development aligned to specific skills gaps. This is something many employers are now doing, with Deloitte highlighting the growth of new learning and career programs driven by social and cognitive technologies.

Retraining existing employees has some major benefits. As well as avoiding the time and cost involved in redundancy payouts and scrambling for new talent, it also enables employers to retain staff and, with them, valuable company knowledge.

To upskill successfully in today’s rapidly changing workplace, we must think beyond traditional one-size-fits-all training methods. Instead employers need to develop more personalised, accessible and inspiring workforce development programs that encourage lifelong learning.

The good news is, as technology continues to transform the workplace, it’s also reimagining the possibilities for upskilling the workforce and making this possible. Instead of sending employees to learn in lecture halls or in off- or on-site training rooms, employers can use digital solutions such as elearning to close the gap.

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ADVANTAGES OF ELEARNING

Employee approved: According to the latest Towards Maturity report and Kineo Learning Insights, learners want mobile, relevant, personalised and self-paced content at a point of need, plus social collaboration.

Faster delivery: Elearning can be deployed much faster than traditional class-based teaching. In fact, research suggests up to 25 to 60% times as fast. This is largely because it avoids the practical limitations of organising rooms and times and can be carried out from any place.

Lower training costs: Because it’s quick to deploy – employees simply switch on their laptop – elearning can drastically reduce overall costs such as money spent on trainers, materials, travel or accommodation.

Increased engagement: Thanks to its range of visual and interactive tools, including videos, games, quizzes and simulations, elearning can aid understanding and keep employees interested in lifelong learning.

Tailored content: As well as offering a wide range of courses to develop the skills needed for today’s market, including both digital skills and soft skills, elearning can be tailored to need and offers the capacity for employers to track activity.

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UPSKILLING OUTSIDE THE OFFICE

These advantages make elearning an ideal fit for today’s market, both for organisations, individuals and the wider education system.

In addition to taking advantage of training opportunities at work, employees should be looking for other ways to develop their skill sets. This could include volunteering, learning a new language, networking and developing social media skills.

When combined with more traditional methods – known as blended learning – it’s already proving to be an effective solution in helping people develop the skills they need to do their jobs now and in the future.

Critically, there needs to be clear career paths and rewards in place to motivate learning. However, research shows workers are willing to take the initiative for their own upskilling – something all employees need to be proactively doing.

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Rebooting recruitment Hiring new talent is the next course of

action. However, a big part of the skills gap problem for employers is finding and

securing the talent they need – it’s become a scrabble to grab the right candidates. If

you are a candidate looking to upskill yourself to move into a better role, it

might be worth thinking about doing a course or finding

ways to build on your experience.

SMART SKILLS-SOURCING TACTICSConstantly scour for talent: Instead of waiting for a position to open, businesses should actively seek relevant educational institutions to build relationships with. Social networks are also a great way to find employees with the right skills. Even if people aren’t actively looking for a job, many are often open to a career change.

Recruit for potential: Hiring for skills and experience has its advantages, such as guaranteed performance from the start. However, in today’s talent pool where these criteria are hard to fulfil, hiring passionate, motivated, quick thinkers for their potential – and then training them – can be effective.

Increase internships: Research by recruitment specialist Hays New Zealand suggests that apprenticeships could be the magic bullet to closing the skills gap, but they must be managed well. By offering students practical responsibilities, as well as sound mentor-based supervision, businesses can get ahead of the game.

Create a strong brand: Having a strong, clearly defined, well-communicated brand with an enticing employee culture can go a long way to help businesses not only secure the talent they need, but also attract like-minded candidates. Do you think companies like Apple, Google or Microsoft struggle to fill the gap?

SO WHAT CAN BE DONE? While much of the responsibility for boosting the talent pool is in the hands of government and education systems, organisations bearing the brunt of this skills shortage must, for the time being, look for fresh ways to attract employees with the capabilities they need.

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By using several methods of recruitment, businesses can help lock in the skills they need to maintain their competitive edge today. They can also ensure they’re able to create the workforce they need to thrive in the future.

But this recruitment effort is two-sided. Individuals must also be proactive in showcasing themselves and their skills to potential employers.

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While government input is essential, businesses and individuals can play

a significant role in helping close the skills gap. Those that ultimately

fare the best will be the ones who commit and respond to these

new models of training and recruitment.

Shifting mindset

However, to close the gap long term, we need to go beyond these top-level tactics. The reality is, employers and employees must adopt a completely new mindset and approach. One that enables a future where machines work alongside humans for the best possible outcomes.

Looking into this, PopTech and Microsoft Office Envisioning created a series of videos that cover the strategy changes businesses must make to bridge the gap and embrace the workplace of tomorrow.

The main takeout is that organisations need to become much more nimble and responsive. Existing structures and cultures must be reimagined to enable faster, more effective decision making and to allow lifelong learning, engagement, social connection, humanity and creativity to thrive.

“One of the dominant truths of the 21st century is that almost anything you can imagine being done by a machine will be done by a machine. And what that leaves us is the creative space.” – Andrew Zolli, Author & Futurist

To successfully make this shift, companies must forget productivity in the short term and focus on long-term outcomes. What’s invested now may not come back immediately, but will reap dividends in the future.

What steps can businesses start taking?

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PRACTICAL TIPS FOR CULTURAL CHANGE

Give employees power: Instead of working from a traditional top-down model of leadership, employers need to hand power to employees. This includes the control to learn independently using accessible new technology. It also includes the power to make decisions, take risks and make mistakes.

Create social workspaces: With automation taking over workplaces, human connection will be more important than ever in keeping employees engaged. In addition, collaborative working will solve evermore complex problems. To rise to this challenge, companies would be wise to create clever office spaces that encourage interaction, networking and ideas sharing.

Unlock creativity: This means removing barriers which block creative flow. Employees need to be given the space to sit, think and experience mindfulness at work, not to be constantly pressured to stay on task and hit deadlines. Let people play and productivity will follow.

What about employees? They too must become nimble, responsive and ready to adapt to new responsibilities. In addition, they must embrace these very different social and creative ways of working.

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ConclusionClosing the skills gap won’t be easy, but it will

be worth it. The first step for both employers and employees is identifying the gaps. Then

the process of upskilling, reskilling and talent recruiting can begin – in fact, it already has.

In today’s rapidly shifting market, the ability to adapt, grow and learn at lightning speed

will spell success. To enable this, we must do two things: continually develop

our skill sets and change our mindsets. If we do, when the

workplace of the future arrives, we’ll

be ready.

SOURCEShttps://blogs.microsoft.com/blog/2018/01/17/future-computed-artificial-intelligence-role-society/

https://news.microsoft.com/features/futureofwork/

https://www.mckinsey.com/industries/social-sector/our-insights/closing-the-skills-gap-creating-workforce-development-programs-that-work-for-everyone

https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/adigaskell/2018/05/21/closing-the-skills-gap-thats-holding-ai-back/&refURL=https://www.google.com.au/&referrer=https://www.google.com.au/

http://www.abc.net.au/news/2016-11-10/information-technology-skills-vital-for-future-jobs-report-says/8013958

https://www.theaustralian.com.au/business/technology/ict-skills-in-high-demand/news-story/095fdb55539a109a22b4145bc1ef024e

https://www.pwc.com.au/ceo-agenda/ceo-survey/2018/reducing-skills-gap.html

http://reports.weforum.org/future-of-jobs-2016/

https://www.entrepreneur.com/article/291098

https://www.hays.com.au/employer-services/HAYS_261832

https://www.mckinsey.com/business-functions/organization/our-insights/identifying-employee-skill-gaps

https://www.digitalpulse.pwc.com.au/report-pwc-ceo-survey-skills-shortage/ https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/central-europe/ce-global-human-capital-trends.pdf

http://www.kineo.com/au/resources/new-to-elearning/the-benefits-of-elearning

https://www.pwc.com.au/people-business/assets/workforce-of-the-future.pdf

https://www.forbes.com/sites/meghanbiro/2015/03/16/recruiting-in-demand-talent-is-about-relationships-and-trust/#5934afac6b3e

https://www.inc.com/justin-bariso/these-are-the-best-companies-in-the-world-at-attracting-employees-according-to-l.html

http://www.afr.com/leadership/management/business-education/universities-teach-soft-skills-employers-want-to-students-of-hard-disciplines-20170328-gv89hq

https://social.hays.com/2016/10/13/nine-ways-to-upskill-yourself-outside-of-the-office/

https://www.hays.net.nz/press-releases/HAYS_302021

https://www.pwc.co.nz/insights-and-publications/ceo-survey/new-zealand-ceo-survey-2018.html

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A leader in global skills development We believe that the time has come for the true potential of corporate elearning to be realised. To deliver real impact that is measurable for both individuals and the organisation.

As part of the City & Guilds Group, Kineo brings an amazing 140 year history

of learning companies from both here and overseas. Endorsed by the most

respected industry bodies, our courses are used by some of the biggest brands

in Australia and New Zealand, setting the benchmark in the market.

In 2018 we joined forces with e3Learning, one of the pioneers and largest

corporate eLearning specialists in Australia & NZ.

So, how can we help you? Get in touch and experience Kineo.

Kineo Australia

Kineo New Zealand

info@kineo.com.au | www.kineo.com/au | 1300 303 318

info@kineo.co.nz | www.kineo.com/nz | +64 (0) 4 801 6688