Do Leaders really know the future skills they need?

As we reflect on our discussions with our partners over the past week, a recurring theme has emerged - the imperative need for leaders to be well-versed in the skills of the future. This understanding is essential when it comes to investing in learning initiatives and sourcing new talent. Accurate descriptions of organizational needs hinge on this knowledge.

Statistics reveal that a significant 87% of organisations are acutely aware of the presence of a skills gap within their workforce. However, the exact nature of this gap remains elusive, spanning hard skills, human skills, and transferrable skills. Additionally, a growing number of job positions are left unfilled. By examining skills through a microscopic lens, we open up the possibility of new pipelines and solutions.

Before delving into the role of leadership in addressing this challenge, it's crucial to define what the skills gap encompasses. It represents the disparity between the skills and competencies demanded by employers and those possessed by the available workforce. This disconnect can manifest in several ways, including:

1. A deficiency in specific technical skills required for certain jobs.
2. Gaps in human skills such as communication, problem-solving, and critical thinking.
3. An imbalance in industry-specific knowledge and experience.
4. Disparities between educational qualifications and actual job requirements.

These gaps not only hinder productivity but also impede economic growth, presenting challenges for both employers and employees alike.

Leaders have a range of core challenges in addressing the skills gap, including:

1. Changing and evolving Skills Taxonomies: As the world becomes a marketplace for skills, varying taxonomies and the rapid pace of change lead to a plethora of skill definitions. Failure to account for this taxonomy exchange in technology can result in bias and diminished quality.
2. Rapid Technological Change: In the digital age, technology evolves at an unprecedented pace, posing challenges for leaders trying to keep up with the latest advancements and their industry implications.
3. Market Uncertainty: Global economic shifts, trade dynamics, and geopolitical factors introduce uncertainty. Leaders may find it challenging to predict which skills will be most valuable in the future.
4. Resource Constraints: Developing a skilled workforce demands time and resources, which can be constrained by budgets, limiting investment in training and development.

Leaders are pivotal in reversing the skills gap challenge, shaping their organisation's culture, strategy, and future direction. They can influence the identification of skills and competencies required for current and future challenges through:

1. Skills Mapping: Visualising skills supply and demand to forecast future needs accurately, aided by skills taxonomy exchanges to promote diversity and inclusion.
2. Strategic Skills Planning: Engaging in strategic planning that anticipates industry trends, technological advancements, and market demands to identify future workforce skills.
3. Skills Workforce Development: Investing in workforce development programs, including courses, workshops, and mentorship, to bridge skill gapsSkills-First Talent Acquisition: Making informed decisions in hiring and recruitment to ensure alignment with essential competencies.
4. Skills Adaptability: Recognising evolving skill requirements and adapting to changing business landscapes to prevent a significant skills gap.
5. Communication of Skills: Establishing effective communication channels between leaders and employees to understand skill development needs and concerns.

In conclusion, addressing the skills gap is a complex endeavor influenced by various factors, with leadership playing a pivotal role. However, it's important to acknowledge that the skills gap cannot be solely attributed to leaders' knowledge gaps. A comprehensive solution demands collaboration and commitment from all stakeholders, including educators, policymakers, and individual employees.

In closing, while leaders bear significant responsibility in addressing the skills gap, it is a collective effort that holds the key to bridging this gap and ensuring a more skilled and competitive workforce for the future.