Unlocking tomorrow’s success: Bridging the skills gap

A study by Korn Ferry – the global organisational consulting company – notes that the universal talent shortage could cross 85 million people by 2030, which roughly equates to the German population

Much has been written about how the age of innovations and digital transformation has impacted industries across the globe. But one aspect that doesn’t directly come into focus is the effect the digital age has had on the worldwide widening of the skills gap.

Despite the writing on the wall, both prospective employees and employers still seem fixated on the degrees that candidates bring to the table. However, today, more than ever, it is increasingly clear that the skills employees possess can pack a bigger performance punch than degrees obtained years ago.

Why Skills Should Supersede Degrees

Against this background, a realistic performance assessment may be obtained by knowing whether a workforce is skilled in specific tasks or unskilled in general. Fortunately, more employers are gradually understanding the need for employees to possess specific new-age skills rather than flaunting their outdated degrees.

Be it start-ups, fintechs, EdTechs, EV makers or other new-age firms, aspiring candidates should have tech-centric skills that make them more employable. Partially, the responsibility for students’ failure to develop relevant skills could be attributed to the inability of academia to move quickly with the times by offering the requisite new-age courses.

As artificial intelligence, machine learning, data analytics, automation, robotics, and other AI-enabled roles gain greater prominence each day, colleges and universities are running behind schedule in providing the required curriculum changes to meet the talent needs of contemporary industries.

Consequently, the importance of internships and other project-based, on-the-job learning has never been so pronounced. With academic institutions realising the inadequacy of current curricula, one expects an accelerated shift towards new-age courses that can help in bridging the skills gap.

However, as everything cannot be left to academic institutions, the NSDC (National Skill Development Corporation) has assumed overall responsibility for addressing the skills gap. Additionally, numerous learning, skill development and vocational centres have emerged for training the youth to improve their job prospects in the existing environment.

The Central and State Governments have also launched several degree programmes and free courses by teaming up with private players across the country. Among others, government initiatives include the Skill India Mission and programmes such as the National Apprenticeship Promotion Scheme, Skills Hubs, and the Pradhan Mantri Kaushal Vikas Yojana that come under the MSDE (Ministry of Skill Development and Entrepreneurship). All these initiatives aim to skill, upskill, and reskill India’s youth.

Although most employment opportunities are concentrated in metros and top-tier cities, the skills gap issue remains a pan-India problem. Hopefully, the programmes launched by the Union and State Governments should help in training and skilling more youth from the rural regions.

The Significance of Skilling, Reskilling and Upskilling

The criticality of promoting skilling programmes is highlighted by a few global statistics. The Monster Future of Work 2022 Report reveals that 91% of employers struggle to fill openings because of the skills gap. Considering that this number has risen by 3% from 2021, it is apparent that the gap will not be filled sometime soon.

Apart from institutional initiatives, it is imperative that employers and industries directly address the skills gap issue by analysing its scope. In such situations, self-help may be the best course to manage the short-term and long-term skills gap. Self-help is more critical because the skills required by specific employers could keep changing or evolving over the months or every year, which is insufficient for formal programmes to make the necessary course corrections to keep pace with dynamic needs.

A sustained skills shortage for any enterprise in a highly competitive business landscape could spell unpleasant consequences. The impact can include loss of sales and revenues, higher servicing costs, drop in productivity, and subpar employee performance due to lack of competencies or limited skills.

Not surprisingly, a study by Korn Ferry – the global organisational consulting company – notes that the universal talent shortage could cross 85 million people by 2030, which roughly equates to the German population. The shortage would also lead to approximately $8.5 trillion in foregone yearly revenues.

Therefore, companies should realise that the consequences of the skills gap won’t be temporary, nor will the issue be resolved of their own accord. It is up to companies to undertake proactive measures to plug the skills gap, so their overall performance, productivity and growth are not hampered unduly.

It must be emphasised that in the present-day scenario, the skills gap cannot be addressed simply by hiring new talent – unless the person comes equipped with some essential skills. The other proactive steps in plugging the skills gap could include hiring gig workers or freelancers who hold vital skill sets and reskilling/upskilling current employees for new or evolving roles, whenever possible.

The latter option could be crucial because hiring and onboarding new talent can be an expensive proposition. If the in-house talent is retrained, it will be beneficial as this employee is already familiar with the company’s culture and code of conduct, unlike new entrants.

As automation and digitalisation keep transforming industries and their operational models, the relevant skills should also hit the reset button. Accordingly, academia, industry and the government must work in unison to ensure that the new or redeveloped curriculum is curated as per the needs of specific industries. With active industry engagement, it will be possible to retrain, reskill and upskill the workforce, thereby empowering them to be future-ready in the ongoing age of digital disruptions.

(This article is authored by Nirmit Parikh, Founder & CEO – apna.co)