Skills gaps shouldn’t be undermined because they impact different aspects of business — from employee performance and professional development to employee turnover and engagement.
Essentially, skills gaps refer to the skills discrepancies between the current skills processed by employees and the required skills to perform productively. There are many reasons why skills gaps are formed; typically it’s caused by fast technological advancements, evolving job responsibilities and tasks, and changing industry standards. If neglected, skills gaps can cause a decrease in productivity, downgrading quality of output, and even employee disengagement.
In a report published by McKinsey & Company, a large majority of businesses (87%) around the world are mindful of skills gaps within their organizations. Different industries are facing skills gap-related challenges, particularly with digital skills.
Building a sustainable and productive workforce requires addressing skills gaps internally and externally as swiftly as possible. This article aims to guide businesses looking to overcome skills gap issues.
Working with a dedicated corporate training firm can help deliver better results by helping upskill employees and plan effective recruiting strategies. Find the best training and development companies on Clutch.
7 Steps to Bridging Skills Gaps
1. Identifying Skills Gaps
The first and foremost step in bridging the gap is basically identifying the gaps and what type of gaps are. There are various factors to look at when recognizing where the deficiencies lie but it starts by conducting skills assessments. Survey forms, employee interviews, and open discussions with employees help give a close look at their current competencies.
A popular method used by companies is using industry benchmarks to compare their organization’s skills. Additionally, gathering crucial feedback from managers and supervisors can help give invaluable insight into the performance of their team members. Aside from the team members themselves, they’re the best source as they’re responsible for keeping tabs on their outputs and functions.
2. Investing in Training
Corporate training is extremely important to bridging employees' skills cap and helping key stakeholders meet their roles’ progressing demands.
Specialized training programs employees with the necessary knowledge and tools they need to improve their efficiency and productivity. These programs address different facets such as leadership, communication, and project management, helping progress employees’ professional development.
A huge majority of employees (93%) say that they’re less likely to leave their roles if they get the development opportunities they need and want. By investing in specialized training, ensure that their employees are equipped to take on new challenges. It shows them the company's commitment to helping their growth, leading to increased employee satisfaction, retention, and engagement.
If you’re planning to hire a corporate training firm, read here to learn more about pricing: “Corporate Training & Coaching Pricing Guide”
3. Leveraging External Partnerships
The biggest benefit of partnering with outsourced or external teams is that they bring an unbiased or fresh perspective to your business. Collaborating with or hiring service providers allows companies to maximize their knowledge and expertise not available within the organization.
By sourcing or contracting an agency, businesses can immediately fill in skills gaps as they work with experts experienced in the best practices.
External partnerships aren't limited to working with a service provider; they can be anything from collaborations with educational institutions to working with industry associations.
One of the most common types of external partnerships is when businesses collaborate with universities and colleges to offer internship, co-op, and apprenticeship programs. These arrangements help current employees develop their mentorship skills while developing a pipeline for future applicants.
4. Cultivating a Learning Culture
Work culture serves as the foundation of a successful business, and cultivating a learning and nurturing culture leads to continuous development. A learning culture is when employees are encouraged to take accountability for their professional growth and take ownership by actively aspiring to acquire new skills.
Companies that foster a learning culture promote cross-functional collaborations to help employees feel supported and motivated by each other.
There are various strategies utilized to nurture a learning culture into an organization's ethos. First, the leadership or management team should exhibit their commitment to learning through their own actions. The company should also provide different opportunities for employees to learn crucial skills through workshops, professional development programs, and even online courses.
Moreover, a learning culture should also be a safe space for experimentation to encourage employees to learn from their mistakes and failures. Companies can incentivize this by recognizing and rewarding employees that are committed to acquiring new skills.
5. Maximizing Key Technologies
Digital and technological skill gaps are major hurdles for all industries across the globe; in fact, even technologically advanced countries such as the United States face the challenge. They inhibit the growth of businesses, so investing in key technologies and tools and then training employees on how to leverage them can help bridge the gap.
By acquiring new technologies, businesses equip their team with industry-standard tools and provide them with the resources they need to enhance their abilities.
Artificial intelligence raised concern among employees fearing their jobs might be replaced by such innovation; however, that should not be the case as it can be used productively to support their functions and training. Various AI-powered tools can help provide personalized training programs for employees, offering immersive and encouraging learning experiences.
6. Applying Forward-Thinking Hiring Processes
The role of human resources and recruitment in bridging internal and external skills gaps is huge.
A forward-thinking hiring approach doesn't just aim to fill in immediate vacancies but also build a team that can handle future demands. This means recruiters shouldn't just focus on an applicant's qualifications but also their adaptability and potential for growth. Applicants who are eager to learn and grow alongside the company bring a ton of value to bridging skills gaps.
When applying a forward-thinking hiring process, recruiters should anticipate future demands and skills for vacant roles. This strategy ensures businesses proactively address skills gaps and create agile workforces.
Part of forward-thinking hiring processes also includes encouraging employees to apply for open positions within the organization — that approach is called internal talent mobility. Since they’re already immersed in the company’s processes and culture, they have a greater chance of upskilling while progressing their career growth.
7. Monitoring KPIs
Key performance indicators (KPIs) give measurable insights into the employee's capabilities, showing if the training programs are truly worth the investment. Monitoring metrics allow leadership to identify the areas that need further improvement and create development plans.
It's important to track the KPIs of employees and compare them with previous data to gauge the effectiveness of their training progress. By closely observing metrics such as training course completion rates, skills assessment scores, and employee retention rates, businesses can adjust their training programs to ensure employees perform at a higher level.
Unlocking New Opportunities by Upskilling
The bottom line is that upskilling is crucial for companies that want to keep up with today’s increasingly competitive and ever-evolving business landscape.
As they say, the company’s employees are its most important assets. Employees who are equipped with the current skills needed for their respective roles are more likely to help the company innovate and unlock new opportunities.
Corporate training helps businesses remain agile by addressing skills gaps and fostering lifelong learning. It encourages employees to develop a mindset of valuing reskilling and upskilling.
Find the best corporate training companies on Clutch. Identify and match with the right team by reading through their company profiles, case studies, and client reviews.
