Organizations must enable skills development
“Education is broken,” says Sean Hinton, Founder and CEO of SkyHive, in a new report on megatrends shaping business. "There is no substitute for the holistic education that a university can provide, but formal education is not moving fast enough to keep up with the demand for skills that businesses have.”
To develop these skill sets, Hinton sees businesses building their own private training programs through relationships with curriculum developers and trainers. If they don't have the money for that, they should help employees find online courses, given how many options are now available.
The six megatrends shaping the future of work
Megatrend 1: Skills for the future
This need to find creative upskilling and reskilling options, outside of formal channels when necessary, is one of six "megatrends" listed in a new report published by the global law firm Ashurst.
The evolving demands of the workforce necessitate innovative approaches to upskilling and reskilling. Formal education systems are struggling to keep pace with the rapid changes in skill requirements. To address this gap, businesses are increasingly developing their own private training programs through partnerships with curriculum developers and trainers. These programs can be tailored to the specific needs of the organization, ensuring that employees gain relevant and up-to-date skills.
For companies with limited budgets, supporting employees in finding and completing online courses offers a cost-effective alternative. The rise of massive open online courses (MOOCs) and platforms like Coursera, Udemy, and LinkedIn Learning provide a vast array of options for professional development. Hinton emphasizes the need for creative solutions in skill development beyond traditional educational channels, highlighting the importance of staying agile in meeting business needs.
Megatrend 2: Changing global dynamics
Organizations must enhance their risk management strategies to adapt to a growing number of global uncertainties, including political, health, and environmental shocks. The integration of new technologies into risk management practices is becoming crucial. Leveraging data, analytics, and artificial intelligence (AI) allows companies to predict and mitigate risks more effectively than ever before.
Hinton notes that these advanced technologies provide unprecedented capabilities for foresight, enabling businesses to navigate and anticipate potential challenges more accurately. For instance, predictive analytics can identify emerging trends and potential disruptions, while AI-driven tools can offer real-time risk assessments and scenario planning.
Megatrend 3: The transition to net-zero
The push towards reducing climate risk is generating significant job opportunities in the green economy. Companies must start reskilling their workforce to meet the demands of this emerging sector. Over the next decade, millions of new jobs will be created to support the transition to a net-zero economy. These roles will span across various industries, including renewable energy, energy efficiency, and sustainable agriculture.
Hinton emphasizes the urgency for businesses to prepare their employees for these roles, underscoring the necessity of aligning workforce skills with environmental sustainability goals. This transition also involves investing in new technologies and infrastructure to reduce carbon footprints and improve environmental impact.
Megatrend 4: Digital transformation and digitalization
Embracing technology is essential for businesses aiming to enhance value, efficiency, and convenience. Digital transformation initiatives are critical to avoid falling behind in a competitive landscape. The report highlights the potential of the metaverse to become a significant aspect of our daily lives, although widespread adoption may take up to a decade.
Businesses are encouraged to invest in digital innovations now to ensure they are well-positioned for the future. This includes adopting cloud computing, enhancing cybersecurity measures, and leveraging big data for strategic insights. The transformative power of digitalization is a key driver of business success and sustainability.
Megatrend 5: Demographic changes
Addressing the needs of both an aging workforce and younger generations is crucial for long-term business success. The labor market is expected to undergo a significant shift, with prospective hires gaining increased power to choose their employers. This inversion of traditional labor supply and demand dynamics means that businesses must adapt to attract and retain talent.
Hinton predicts that employers will face heightened competition to meet the expectations of a diverse and empowered workforce, necessitating a strategic approach to workforce management and engagement. This includes offering flexible work arrangements, investing in employee well-being, and creating inclusive workplace cultures.
Megatrend 6: Resilient cities
Urban areas must balance increasing density with the need for safety and affordability to remain attractive places to live and work. The competition between top-tier cities like New York and London and smaller cities like Lisbon will intensify. Resilient urban planning is essential to ensure that cities can support economic activity while providing a high quality of life for residents.
The report underscores the importance of developing urban environments that are both livable and conducive to business operations, highlighting the role of resilient infrastructure and policy in achieving these goals. This includes investing in sustainable transportation, affordable housing, and robust public services.
Fostering skills for the future among the workforce
If there’s one thing to take away from these trends, it’s that ensuring that workers are equipped with the right skills will be a catalyst of organizational success as the world continues to be disrupted by technology. Like everything, it requires a carefully planned process that begins with identifying skills gaps.
Regular assessments, such as skills matrices and performance reviews, help pinpoint areas where employees need development. Engaging with industry experts and staying updated on market trends can provide insights into emerging skill requirements. By understanding these gaps, talent leaders can develop targeted training programs that address specific needs, ensuring that their workforce remains competitive.
Developing in-house training, enabling reskilling and upskilling, and encouraging continuous learning are equally important undertakings. In-house training can, for example, be designed in collaboration with curriculum developers and trainers to ensure high-quality content that aligns with the company’s goals. Mentorship and coaching programs can facilitate hands-on learning and provide employees with the guidance they need to apply new skills effectively. Meanwhile, promoting a culture of continuous learning through incentives, workshops, and seminars can provide opportunities for employees to learn new skills and stay updated on industry trends.
This should all take place against a backdrop of reskilling and upskilling which form the core of preparing your workforce for the future. Reskilling involves training employees to take on entirely new roles within the organization, often in response to technological advancements or market shifts. Upskilling focuses on enhancing the current capabilities of employees, allowing them to perform their existing roles more effectively or take on additional responsibilities. Both approaches require a strategic investment in training programs and resources.
Read the Ashurst report for more insight
At a time of global geopolitical, economic, and financial uncertainty, it has never been more important for businesses to seriously plan for the future. That’s the headline of Ashurst’s report, which is based on in-depth interviews with Hinton and six other experts in addition to a survey of more than 300 senior executives conducted by Economist Impact.
Read the survey or check out the latest posts on our blog to learn more about how these and other trends are shaping the future of work.
