How to bridge the skills gap between employees and companies

We live in a digital-driven age characterized by various technological advancements. Due to the rapid changes in the world, companies are experiencing a skills gap among employees. According to a report by Mckinsey & Company, approximately 375 million people will need to change their field of work this decade to meet the expectations of their employers.

This statistic illustrates that there is a difference between workforce requirements and business requirements. Considering the employer’s point of view, this creates a huge risk for the organization due to a shortage of manpower. From the employee’s perspective, it is daunting for an individual to be constantly faced with a career transition or undergo regular training. The need of the hour is therefore to address the cause and effect of this skills gap and fill it with appropriate strategies.

Closing the skills gap
According to a Korn Ferry report, 85 million jobs will be vacant by 2030 due to a significant skills shortage. Lack of opportunities, low pay scale and an unsuitable working environment have led people to quit their current jobs. In addition, it takes a long time to acquire a new skill and realize the choice of the field in which to work.

Currently, remote jobs and flexible hours are a top priority for employees due to the convenience and quieter work environment. Additionally, companies are seeking to get their officials to join the offices to recoup their losses. Consequently, this has led to a situation of disruption and imbalance in job roles, and industries are deliberately turning to automation to fulfill their industrial needs.

Bridging the gap between supply and demand
As businesses transform in this fast-paced era, they need to address the skills gap problem and formulate a few strategies to find a comprehensive solution. Companies can adapt to analyze specific roles that can be reshaped to achieve desired results. Working together, bridging the skills gap is the responsibility of employees and companies. So, to understand the full picture, companies can assess this situation through a holistic approach.

Employee perspective
The situation on the ground is that organizations have employment opportunities. However, people are not appropriately qualified according to industry standards and organizational needs. Therefore, it is the sole duty of employees to improve and requalify themselves in order to fit into the framework of a company. Primarily, employees can start by developing soft skills, which are a necessity to get into an organization. Then they can explore their strengths and weaknesses to come up with a personalized development plan.

Business outlook
From a business perspective, there is a shortage of abundant and skilled labor to meet the expectations of the organization and drive its growth. Markets and changes in technological trends are also responsible for the evolution of companies in terms of requirements. As employers, they need to identify the qualities they are looking for in their recruits, then put in place a system to pass them on to existing employees. They should start the process by analyzing the degree of skills gaps and then formulating solid solutions to address the issues.

Find the root cause with skills gap analysis
Accurately measuring and measuring the skills gap is the first step towards designing a solution. Skills gap analysis can provide insight into problem areas and the root cause of problems in the organization. This study requires comparing the know-how of the employees with the skills of the organization.

Provide relevant training
Hiring new employees requires a lot of time and research for the human resources department. Instead, companies can invest in training and upskilling their current employees to reduce costs. Sometimes there are hidden and overlooked talents in the organization that need to be recognized.

In the midst of digital disruption, being on the cutting edge of technology is the need of the hour. Therefore, employers can train their workforce by providing certification courses in core technology areas such as cloud computing, AWS, AI, analytics, and blockchain, etc., for no reason. to name a few. This can be made possible by building a cross-sectoral relationship between companies and training institutions. Courses run by subject matter experts provide the right balance of theoretical knowledge and practical exposure. Service providers offering these professional trainings ensure holistic learning of individuals and turn them into industry-ready professionals.

Last takeaway
The World Economic Forum states that to bridge the gap between employees and businesses, it is necessary for humans to improve their emotional and social capacities. As this is a two-way process, both employees and employers need to understand their key role in resolving the situation as they both want to thrive in a competitive marketplace. Overall, it’s the company’s stipulation to consider new hires, outsource or retain existing employees, and train them in job roles as part of the solution.

(The author is Principal, Cloud Wizard Consulting)

Valerie J. Wallis