In the ever-evolving landscape of employment and skills, one startling fact stands out: a significant portion of the global workforce finds itself either underqualified or overqualified for their current roles. According to a 2023 report by the International Labour Organization (ILO), approximately 18.9% of workers in G20 economies were underqualified and some 31% were overqualified. In some developing countries, the rate of underqualified workers in employment reaches over 40%.

This complex web of skills mismatch is echoed in McKinsey’s Global Survey on the future of workforce, in which 87% of companies already  experience or anticipate skill gaps in the next five years—a trend that threatens productivity and competitiveness on a global scale.

But how do organizations address this landscape of skills mismatch and evolving workforce dynamics? Do upskilling and reskilling initiatives take center stage in corporate strategies, and what drives their success?

Surprisingly, even as 52% of CEOs in PwC's Global CEO Survey express significant concerns about future skill shortages, many organizations grapple with the challenge of translating good intentions into effective action. A critical factor contributing to this disconnect may be the focus on short-term training to addresses immediate skills gaps—an approach that struggles to keep pace with the rapidly changing tech landscape, where the half-life of skills continues to shrink.

Aside from considerations about the right kind of ed tech solutions and learning programs to be deployed, a critical issue to consider is whether an organization employs a skills-based approach to talent management, role descriptions and hiring, and builds a culture of learning that incentivizes employees to learn the right skills with the ability to apply it on the job. All of which necessitate an understanding of skills that are in demand today and how those might change in 5 years from now.

What are some of the tools and strategies organizations can employ to identify their skills gap and predict future skills requirements?

1. Utilize skills taxonomies and data analytics:

An organization could adopt a standardized skills taxonomy such as ESCO (European Skills, Competencies, Qualifications and Occupations - maintained by the European Commission's DG for Employment, Social Affairs and Inclusion) or O*NET (Occupational Information Network - maintained by the US Dept of Labor) to categorize employee skills.  AI tools can be used to translate and approximate an organization taxonomies, if any, to those that are more comprehensive such as ESCO. Skills profiles and job requirements are analyzed to show concentration of roles, skills as well as skills gaps. Quite a few tools in this area already exist, like Visier or Cognizant Skills Intelligence Platform, some of which offer their own taxonomies as well.

2. Implement predictive analytics:

Through predictive analytics, an organization analyzes historical data on industry and technology trends and job role requirements. Some potential solutions in this space are Burning Glass Technologies (now acquired by Lightcast), Gartner Talent Neuron, or LinkedIn Talent Insights, among others. While these tools are primarily made for companies to manage their upskilling, reskilling and talent acquisition strategies, I wonder whether higher ed institutions or accrediting bodies may also be a good use case to help them realign learning outcomes and curricula and ensure that they are teaching skills that will be in demand in the future.

3. Link learning to strategic objectives & foster a learning culture:

While a culture of continuous learning by encouraging employees to set individual development goals is a wonderful idea, there needs to be an incentive in tying learning to skills required for performance. In other words, learning programs need to be the result of an upskilling strategy to deliver on skills critical for the company’s competitiveness and enabling employees to see how their newly acquired skills can be applied on the job to improve performance and their own career development prospects.

There are large organizations that have chosen to build their own proprietary solutions and creating a custom ecosystem of organizational LMS, predictive analytics tools, custom-built or off-the-shelf courses, and adaptive learning technologies. Siemens is often cited as a leading example of an organization that invests significantly in upskilling and reskilling with their Siemens Learning Campus, with a strong emphasis on aligning learning with business objectives.



What has your experience been with upskilling initiatives or learning programs at your company? Get in touch for more info or help with your learning strategy and choice of solutions.