Mind the skills gap: Understanding and bridging the growing skills divide

The skills gap is something that has worried HR professionals, and business owners alike, for many years. And this worry is unlikely to go away any time soon, especially as it seems that this gap is set to get even bigger. So, what’s the big picture here?

Employers’ increasingly need to hire people who are skilled at processing information, making informed decisions, adapting to change, and updating technical skills. As businesses pivot to meet market demands such as net zero targets, and generative artificial intelligence (AI) becomes ever more integrated into the world of work, we’re already seeing a steep increase in demand for these core skills. At the same time, employers are struggling to upskill their workforce to keep pace with demand.  

In this blog, we look at where the skills gaps are right now and whether skills-based hiring could be useful to bridging this gap. We base some of the content in this blog on a recent webinar I joined on the issue of skills gaps which was hosted by HR Magazine. I’ll let you have a watch of that in your own time, but in the meantime, let’s first look at what the skills gap is.

What is the skills gap?

In short, the skills gap refers to the mismatch between the demand for specific skills in the workplace and the supply of individuals who possess those specific skills. Generally, we see a few common skills gaps in our workplaces – though there are many more too.

1.       A shortage of technical skills across areas like data science, artificial intelligence, cybersecurity skills, and cloud computing.

2.      A lack of interpersonal abilities and soft skills such as critical thinking, communication, collaboration, and problem solving.

3.      Team members lacking managerial and supervisory skills to better develop employees and help their team members grow.

The consequences of these skills gap are far-reaching. Businesses may well experience reduced productivity, struggle to innovate, face increased recruitment costs and increased staff attrition, and experience challenges in meeting customer demands. Whilst individuals, on the other hand, may experience greater unemployment, stagnant wages, or limited career progression opportunities. All of which will undoubtedly have an impact on the economy, overall growth, and global competitiveness. Clearly the skills gap is a big issue – and one that will take collaboration to solve.

So how do we bridge this gap?

Addressing the skills gap is not an insurmountable challenge, but in the same breath, it’s a complex one.

Here are just a few ways you can bridge the skills gap if you work in HR:

• Enable flexible working: Flexible working policies are key to bridging the skills gap. Look creatively at what your requirements are and aim to diversify your talent pipeline. Offering flexibility to staff will allow you to ensure you have some of the best talent for your roles.

• Put money into learning and development: Double down on learning and development for your team members and ensure you are equipping them with the most up to date skills that they need. This is not a once and done activity, but should be a regular priority. 

• Consider skills-based hiring: Prioritise the skills and competencies that you require in your workplace. Build your talent acquisition strategy on this rather than merely looking at previous accolades or degree results.  

• Leverage work experience: This is often an overlooked area but getting people in for work experience is a great way to bring news skills and new ways of working into an organisation.

• Look internally for job hires: All too often we look externally for new hires. Consider people internally for career moves. Not only does this allow organisations to really get to understand their team, but it can be great for employee retention too.

• Consider mentoring: Pair experienced employees with those needing to develop their skills.

• Talk to your top talent: Ensure you have career conversations with your team so you can understand how best they can grow and move within your business. Most importantly understand how you can keep that top talent.  

• Embrace technology: Consider whether you can solve a problem using AI. Using the power of tech, your current team can perform tasks that might have previously required additional headcount. But be sure to train your team in the tech, so that they can use it intelligently.

The importance of upskilling, reskilling and skills-based hiring in the workplace cannot be overstated. By implementing initiatives such as those mentioned above, organisations will be able to start to bridge the skills gap, whilst also improving employee retention and productivity too.

It’s time to equip your workforce with the skills they need to face the future. It’s time to bridge the gap.

How can Amelore help?

We can provide our expertise in workforce planning, career mapping and talent acquisition strategies. If you need advice, we’re here to help. Just get in touch with us here.