60% of tech employers report difficulty in finding qualified candidates to fill open positions due to a skills gap.
A skills gap emerges when too few employees or none possess the necessary skills to meet the company’s needs. This has been accelerated by rampant digital transformation initiatives taken up on a war footing across industries.
Both job seekers and employers are facing challenges due to a mismatch between the skills that are in demand and the skills that are available.
For employers, a skills gap means:
- Difficulty filling open positions: Recruiters are finding it hard to recruit qualified candidates for open positions. This can lead to longer hiring processes and increased recruitment costs.
- Decreased productivity: If an employer is unable to fill a position with a qualified candidate, it can lead to decreased productivity as the workload is distributed among existing staff or remains unfulfilled.
- Decreased competitiveness: A skills gap can hinder an employer’s ability to meet the changing needs of the market, potentially leading to a loss of market share.
- Increased training costs: In order to bridge the skills gap, employers may need to invest in training and development programs for their existing employees.
What is Driving the Skills Gap?
G20 economies stand to lose USD 11.5 Tn in growth over the next decade, due to the rising skills gap.
The Skills Gap is caused by several reasons, including:
- Rapid technological advancement: With technology advancing at a rapid pace, it can be difficult for both employers and employees to keep up with the necessary skills and knowledge.
- Changes in the job market: The job market is constantly changing, with new industries and job roles emerging and others disappearing. This can create a skills gap as workers may not have the necessary skills for the jobs that are in demand.
- Education and training: The education and training systems may not always align with the needs of the job market, resulting in a mismatch between the skills that students are learning and the skills that employers are seeking.
- Unemployment or underemployment: Workers who are not actively working or are not fully utilizing their skills may fall behind in terms of current industry knowledge and trends.
Upskilling and Reskilling to Close Skills Gaps
Upskilling refers to the process of learning new skills or improving upon existing skills in order to meet the changing needs of the job market. Reskilling refers to the process of learning completely new skills in order to transition into a new industry or job role. Both upskilling and reskilling can be effective in closing the skills gap by helping workers to acquire the skills that are in demand in the job market.
There are a number of ways that companies can use upskilling and reskilling to close the skills gap:
- Offer training and development programs: Investing in training and development programs for existing employees helps them acquire new skills or improve upon existing skills.
- Partner with educational institutions: Partnering with educational institutions to offer training or education programs that align with the skills needed in the company ensures that the company has a pipeline of skilled workers.
- Encourage continuous learning: Companies can encourage a culture of continuous learning by providing resources and support for employees who want to learn new skills or advance their careers.
- Offer flexible work arrangements: Companies can offer flexible work arrangements, such as part-time or flexible hours, to allow employees to pursue education or training while still working.
By investing in upskilling and reskilling, companies can not only close the skills gap, but also improve employee retention and increase productivity.
The Role of AI in Reskilling
Artificial intelligence (AI) can play a role in reskilling by providing personalized learning experiences and helping individuals to acquire new skills more efficiently.
AI-powered reskilling solutions, such as Draup’s Reskill Navigator, can analyze an individual’s current skill set and learning preferences to help Learning & Development teams create a customized learning plan that is tailored to their needs. This can help individuals to more effectively acquire new skills and knowledge in a shorter period of time.
AI can also be used by talent management teams to identify and assess the skills that are most in demand in the job market. This can help individuals to prioritize their learning and ensure that they are acquiring the skills that are most valuable in their field.
Draup’s AI-Driven Talent Intelligence delivers customers unique role-level and skill-level insights not available on any other platform. Draup’s powerful AI engine applied to a database of over 750 Million profiles helps HR leaders find & hire the right skills and implement cost-optimized reskilling initiatives to transform their global workforces and become future-ready.
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