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What is the skills gap? And why should you be paying attention?

The world around us is changing and advancements in technology are being rolled out rapidly. Employees are working from home more than ever, the gig economy is growing and automation is no longer a thing of the past.

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What is the skills gap? And why should you be paying attention?
February 9, 2021
:
7
Minutes
What is the skills gap? And why should you be paying attention?

The world around us is changing and advancements in technology are being rolled out rapidly. Employees are working from home more than ever, the gig economy is growing and automation is no longer a thing of the past. The fact of the matter is – these advancements are having an impact on businesses all around the world and in turn, organisations like yours need versatile skill sets. So what is the skills gap we’re encountering here? It’s the difference between the skills the workforce already has, and the ones they need to flourish in Industry 4.0.  And this gap that needs to be filled urgently. But, how do you tackle this in your organisation in order to future-proof your business and boost growth?

Why reskilling needs to happen. Fast.

The impact of Coronavirus has accelerated the digitalisation of the workplace, and in turn the growth of the skills gap. So, it’s time to prioritise L&D, and craft a plan to develop the skills your business needs to stay competitive. What you might not realise is that maybe it’s not the tools or technology you use that will kickstart this change, but the way the learning is cemented and how your learners process it.

Did you know that $13,500 per employee, per year is wasted on ineffective learning? Which will translate into $8.5tn of worldwide unrealised revenue by the year 2030. Now is the time to equip your teams with the skills, competencies and capabilities they need to stay ahead in the digital era. There’s not a single moment to waste. To back this up, McKinsey carried out a survey to find out and ask businesses how they expect this very real gap will affect them. 44 percent of respondents said their organizations will face skill gaps within the next five years, and another 43 percent report existing skill gaps. In other words, 87 percent say they are either experiencing gaps now or expect them within a few years, so it’s hard to ignore the challenges ahead. So, what is the skills gap going to change for your business if it’s not tackled? The reality is, organisations are at risk of losing out to competition, disengaging employees and dissatisfying customers – which will have a big impact on the bottom line.

There is also expected to be a global human talent shortage of 85 million people by 2030, meaning businesses should tackle this issue head on if they are to survive and adapt. This is why combating the skills gap should be one of the most pressing actions on your agenda right now. And the key to success? Effective learning and training that prepares your people for the future.


How effective learning and training can fuel business growth & resilience to the skills gap crisis.

Business leaders are typically focused on creating impact, increasing sales and in turn, boosting profit. However, they often overlook the importance of learning and development in making this happen. Real change and growth lies within your people. And investing time and resources into ensuring they have the right knowledge and skills to grow in their career, is a sure-fire way to boost your business bottom line.

Effective training not only gives employees the tools to perform better, it instils confidence and resilience in them, helping them to adapt when new challenges are thrown their way (like the looming skills gap!) So ensuring you provide your people with learning that really works is paramount. Here at Stellar Labs, we believe that truly effective training is always backed by science and evidence – and is ultimately brain-friendly, making sure it sticks in your learners minds. But you must act fast. Now’s the time to invest in your people, if you want to stay resilient to industry 4.0. So what will you pick, survive or thrive?

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