Introduction to Skills Gap
In a job market that is changing quickly, COVID-19 has caused a skills gap that is already growing.
Which job fields require which skills? And what implications does it have for your career and education plans?
By 2030, nearly 20% of workers will be significantly underqualified for their jobs, according to estimates. As a result, many people might end up working less, not being happy with their jobs, or even not working. It may indicate that obtaining a suitable position in a relevant industry is more challenging.
The severity and scope of this skill gap are up for debate, but it can bring about real problems. We talk about what it is, which industries lack specific skills, and how you can keep up with your career-related personal development.
What Exactly does it Mean to have a Skills Gap?
Let’s begin by defining the term “skills gap.” To put it briefly, it refers to the discrepancy between the skills required for a given job and those readily available. However, as we’ll see, it can have an effect at various levels of the employment sector:
Individuals View- The skills gap indicates that some individuals lack the necessary skills for the available positions. For instance, some figures suggest that approximately forty percent of UK workers need more qualifications for their current positions. This indicates that some people lack capabilities while others have an excessive amount. It is also why governments like the United Kingdom continue to offer entry visas to skilled foreign workers who want to work here.
The skill gap is also problematic for businesses. They need more talent pools in particular fields or professions, which results in roles taking longer to fill. Businesses suffer from several other effects due to this shortage of skilled workers.
It may result:
An inability to expand the business, a decrease in the quality of the work produced, a reduction in revenue, and a higher employee turnover rate are all potential adverse outcomes of a skill gap. Additionally, it may significantly affect post-COVID economies as a whole. In the end, it might indicate that businesses are unable to meet the needs of their clients in terms of providing goods or services.
For industries, these issues become even more apparent when they are extrapolated across entire industries. There may be widespread talent shortages and a need for more personnel for specific roles. There may also be a need for more skilled managers to train new hires. There may be gaps, regardless of whether we’re talking about low- or high-skilled work. We might end up with a situation in which a lot of low-skilled people apply for a small number of low-skilled jobs in some industries, but there are also high-skilled job openings that don’t have enough skilled people to fill them.
As a result, several vacant positions may cause the rate of progress in specific industries to slow. Additionally, such extensive gaps may have a significant economic impact. As a result, leaders in the industry and governments worldwide must quickly develop strategies to close the skills gap.
Are Skills Gaps Still Existing?
The outcomes on the internet will bring up several well-known articles that say things like “the skills gap was a lie.” During the financial crisis in 2009, many of these specifically addressed the job market and the high unemployment rates in the United States. Naturally, only some people agree that there is a skills gap.
According to some data, employers were looking for candidates with more skills, education, and experience as unemployment rose. Expectations from employers also decreased as the unemployment rate began to decline. However, there are numerous additional perspectives on this issue.
As we’ll see, there are clear indications that specific industries lack qualified professionals. In addition, some data suggest that, despite higher education levels, literacy and numeracy may need to catch up.
Why is there a skill gap?
There are several possible explanations for the skills gap. These frequently vary based on the industry and type of position. However, some recommendations apply to virtually every work setting.
Technology
The workplace is changing due to the proliferation of disruptive new technologies like automation, artificial intelligence, and machine learning. In the coming years, numerous positions will become obsolete, opening up new places to support these innovations. Also, things like the gig economy are causing a significant change in how people find jobs.
As a result of these advancements, the skills and job roles employers require are evolving, and only sometimes are enough people available to fill them. According to a 2018 Deloitte study, the skills gap could result in approximately 2.4 million vacant manufacturing positions in the United States alone between 2018 and 2028.
By developing AI courses—and even robot courses!—DT Evolve is keeping up with the rapid pace of technological advancement. With our academic and professional partners, you can complete and earn a certification to ensure that you have the skills that will be sought shortly and in the present.
Education
It is one of the areas where problems are starting to appear. A recent OECD report reveals more graduates than non-graduates in the job market. The overall level of education in the UK is high. However, skills gaps exist in basic literacy, numeracy, and information technology.
Even though there needs to be more relevant information, more is required to encourage more education and skill development. According to some estimates, only 24% of UK workers have re-skilled themselves recently.
Training
Some schools of thought contend that individuals and the educational system are not the only contributors to the skills gap. Employers used to hire graduates or untrained newcomers and train them to do the job of previous generations. With the gig economy and the need for immediate results, many businesses today seek job-ready people. Expectations and requirements frequently reflect that experience is valued more highly than potential.
Which sectors lack skill gaps?
What about professions? Even though people may lack skills in general areas like literacy, numeracy, and information technology? A lack of skills affects some industries more than others.
Where to find the information
There are a few clues about where these shortages are in the United Kingdom. The government’s Shortage Occupation List is one place to look. Where skilled jobs are in short supply, this list provides overseas workers with an opportunity to apply. However, it also reveals areas where skilled workers need more supply.
The Project Luminate report is another helpful resource identifying occupations and industries with skill shortages. It also investigates the regional labor market and the reasons for the difficulty filling some positions.
The UK Skills Mismatch in 2030 report examines the skills themselves and is one final paper on the subject. It brings to light a significant issue with leadership, management, and fundamental digital skills. It also looks at knowledge areas where under skilled workers are likely plentiful.
Where do skill gaps exist?
So, what can these sources tell us? The reports share several similarities that point to areas with a more significant skill gap. The STEM (science, technology, engineering, and mathematics) industry, healthcare, information technology (IT), the creative industry, and trade are some of the main areas.
The Project Luminate report highlights some of the positions with the most significant skill shortages, including:
- Medical caretakers
- Developers and programming engineers
- HR and modern relations officials
- IT client support experts
- Business deals chiefs
- Engineers
- Plan and improvement engineers
- Website specialists
- Contracted bookkeepers
- Educators
As can be seen, even this brief selection encompasses a wide range of perspectives. Additionally, research indicates that a similar group of occupations is experiencing a shortage in the United States.
Which skills are in high demand?
The positions for which there is a need for more skilled professionals frequently require a unique set of skills and knowledge. Candidates with both hard and soft skills are sought after by all kinds of employers.
To identify “the skills that are in the highest demand relative to the supply of people who have those skills,” a recent study conducted on LinkedIn looked at more than 20 million job postings across the network.
Hard skills
The intellectual abilities necessary to perform a particular job are known as “hard skills.” Employers can easily define and locate these measurable skills:
Blockchain.
There are numerous fascinating applications for the blockchain technology behind cryptocurrencies like Bitcoin. Experts in the emerging field are sought after by employers.
The use of the cloud. Understanding systems like Microsoft Azure is critical because they can be used for many things. Another relatively new technology with enormous potential is the cloud.
Logical analysis.
There is a significant demand for individuals capable of processing and interpreting large data sets, regardless of whether they work in strategic thinking or data analytics.
Intelligence by artificial means Artificial intelligence’s (AI) potential has only recently emerged. These professionals are in high demand as machine learning, and other fields continue to grow.
UX design Products and digital devices are central to our modern lives. In today’s job market, people who can design intuitive user experiences (UX) will always find work.
Soft Skills
The productive personality traits that make for good employees are soft skills. They’re harder to teach, but employers still want them. Some of the most in-demand soft skills when it comes to a skills gap are:
Creativity: In almost every industry, the ability to think creatively about solving problems and making connections is a valuable skill.
Persuasion: The ability to persuade others to follow your ideas is always helpful in leadership or negotiation.
Collaboration: Collaboration is an essential skill that can take many forms. Many organizations are built on working with others to achieve results effectively and efficiently.
Adaptability: People who can think on their feet and adapt to new situations will always be valuable in a constantly changing workplace.
Emotional Maturity: Understanding and responding to one’s own and other people’s emotions is the focus of this soft skill.
Also Read: Decision Making and Problem Solving Skills for Managers
Challenges in Addressing the Skills Gap
There should be the number and level of the people necessary to meet the demands of the modern labor market and those demands. However, addressing these issues can be challenging for individuals and employers.
From the workplace perspective, it can be challenging for businesses to construct the infrastructure necessary to recruit, hire, train, and upgrade their workforce. When you combine this with a rapidly changing workplace, additional gaps soon appear. Instead of looking for people who can grow with them over time, many businesses prefer to hire people who can fill a need right away.
The challenge of training or retraining individuals can be a frightening prospect. It involves investing time and effort into learning new skills and determining the appropriate progression path.
Although these obstacles appear challenging, the situation is far from impossible. Individuals, businesses, and industries can address the skills gap in various ways.
How are Businesses Responding to Skills Gap?
In a recent global survey, industry experts at McKinsey found that 87% of businesses say they are experiencing or anticipate experiencing a skills gap. However, what can companies do to address the issue? Fortunately, there are a few tried-and-true actions that companies can take:
A skills gap analysis
The first step is to identify areas where problems could arise. Businesses need to look at the essential skills they need or want and compare them to their current workforce’s skills. HR teams can gain valuable insight from this analysis and proceed with their actions.
Hiring
Once a comprehensive analysis is in place, businesses can hire individuals with the appropriate skills. They can concentrate on the skills they currently lack rather than applying for roles with a narrow scope, expanding the skill pool.
Skills development
Employers offering reskilling and upskilling programs might be the most efficient strategy for closing the skills gap. These help current employees learn the skills the company lacks—both the individual and the business benefit from this knowledge development.
Conclusion
A skill gap analysis has numerous advantages. However, you must recognize that the method is not a complete cure. It can be hard to do a skill gap analysis. Follow the instructions we gave you earlier.
A skill gap analysis is absolutely necessary for the future of your company. It is a guide for your company and employees on how to survive and thrive in the volatile, uncertain, complex, and ambiguous (VUCA) business environment.
The skills gap analysis process records your company’s potential, current obstacles, and future prospects. In addition, the procedure reveals useful insights that have the potential to advance your business while simultaneously guaranteeing employee productivity, engagement, and loyalty.
The majority of businesses are at a crossroads where the prospect of what lies ahead seems insurmountable. With so much on the horizon, it’s easy to get sidetracked. Utilizing the strategy of skill gap analysis to maximize your reign in the present and the future is, however, the best way to prepare for the future.
