Spring into Identifying the Skills Gap in Your Business!
Almost three-quarters (72%) of organisations say that a skills shortage has led to an increased workload for other staff, and 78% say they are experiencing reduced output and profitability as a result (source).
Two things we know so far about 2024:
- Job vacancies are falling
- Skills-first hiring is not embedded into the recruitment strategy of enough businesses.
Are you struggling to keep up with the ever-evolving labour market? Uncertain where to focus your recruitment efforts, or which role to hire for first?
First things first: tip or at least balance the focus on skills-first hiring. The traditional method of valuing education over skills is not doing you any favours; in 2024 skills reign supreme and those businesses who already know this have access to a wider pool of candidates, appear more attractive on paper, and are likely to see a reduction in their miss-hire rate (source: Forbes).
The Rise of the Skills Economy
In recent years, the global economy has witnessed a seismic shift towards what is often referred to as the “skills economy.” This shift is driven by rapid technological advancements, evolving job roles, and the demand for specialised expertise across industries. As a result, employers are placing greater emphasis on candidates’ practical skills and capabilities rather than their formal education.
So, our questions to you:
- When was the last time you carried out a skills-gap audit?
- Are your employees falling behind?
- Is your business struggling to make a profit?
- Have you considered how quickly the world evolves, and is your business evolving with it?
If you answered never or yes to any of these questions read on…
Conduct a Skills Assessment
This is simple, attainable, and measurable. What are the current skills of your employees? Has technology allowed for their role to adapt, grow or change for the better? And, are you making room for this advancement in their position? If most of your employees are failing to meet the requirements of their role, as outlined by your organisation’s strategic objectives, we suggest you point fewer fingers of blame and look within, now is the time to conduct surveys, interview employees, carry out market research and understand the gap between the skills they need and the skills they currently possess.
Drop in with Employees!
The world seems to be spinning a little faster these days, right?! Truth is, we’re all busy! But, if you’re a team leader, manager or similar, we encourage you to set intentional time aside to focus on employees within your team or business. Do you encourage open communication? Do you actively listen? Note the difference between listening and active listening. Through open communication managers can better understand the career aspirations of their team this may include their skill development needs, and areas where they feel they could benefit from additional training or support. Employee feedback can and will provide valuable insights into skills gaps, especially if more than one person has a similar thought or feeling.
What is the Competition Doing?
We often emphasise the importance of staying in your lane, but sometimes we forget to notice when the speed limit changes from 40 to 60 mph. Nobody likes admitting they’re on the back foot or not doing as well as their competitors, but it is worthwhile, now, and again, to compare your organisation’s skill requirements and capabilities to those of competitors and industry benchmarks. Identify areas where your organisation may be lagging e.g., are you up to date with the latest tech for your industry? Is there a significant disparity in skills?
Access Industry Trends and Future Needs
Stay informed about industry trends, technological advancements, and changes in the business environment that may impact the skills required for success in your organisation. Anticipate future skill needs and proactively address potential gaps through strategic planning. Again, just a like a social media manager must incorporate engagement into their planning time, you too will need to set time aside to focus on industry trends and the needs of your team.
Monitor Recruitment and Hiring Challenges
It’s a hard pill to swallow but people don’t leave bad companies, and whilst they don’t necessarily leave bad managers either they may leave for a better opportunity. We encourage you to pay attention to recruitment and hiring challenges, such as difficulty finding candidates with specific skills or high turnover rates in certain roles. If you’re fortunate enough to have a talent acquisition team, can they do a quarterly audit on this? If not, it is something we encourage you to pay attention to and review regularly. Ultimately, some of the hiring challenges may indicate underlying skill gaps within the organisation that need to be addressed. Do you carry out exit interviews? Do you truly understand why employees leave, where they go next and what lead them there?
How to bridge the skills gap?
Now, we’re not the type to present you with a problem without looking for the solution too! So, if you’ve read this and thought – yes, there is probably a skills gap issue in my business and/ or you’ve carried out an audit and know one exists, we can help with that too…
- Develop Training Programmes: all training offered should address identified skills gaps, training can include a mix of internal and external training resources.
Roughly 86% of employees say that job training is important to them – and nearly three out of every four (74%) are willing to learn things outside of work hours to improve their job performance (source).
- Take advantage of free webinars, workshops etc: anything to help your team upskill! We advise regularly logging onto Eventbrite and widening your network on LinkedIn to stay on top of the businesses who regularly hold training sessions.
- Introduce mentorship and coaching: pair employees with mentor or coaches who can provide guidance, support, and feedback as they work to develop new skills.
Organisations with strong coaching culture had a 47% higher revenue per employee than those without (source).
- Feedback and recognition: regularly assess the effectiveness of initiatives aimed at bridging the skills gap and adjust as needed based on feedback from stakeholders and changing market demands. In addition, regularly gathering feedback and recognising employees builds someone’s sense of value and purpose; it also reinforces positive habits and encourages more of the performance an employer wants to see.
- Investment in technology: the IT and technology skills-gap is getting wider, and businesses must start leveraging technology to mitigate a lack of skilled resources.
In 2023 Forbes research found that 93% of UK businesses acknowledge an IT skills gap (source).
To summarise, in today’s dynamic business world, recognising and addressing skills gaps is crucial for staying competitive. Assess your workforce’s skills, stay updated on industry trends, and invest in training to bridge any gaps. Businesses who are open to and invest in a culture of learning and growth, can thrive in this changing world if you look toward developing a business fit and ready for 2024 and beyond!
Is your business already working on bridging the skills gap? Which of these methods have you deployed or what are you doing that is different? Let us know [email protected]!
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