Article: Why closing skills gaps should be a priority for your organisation

Skilling

Why closing skills gaps should be a priority for your organisation

The rapidly widening skills gap has led to staffing challenges, making it harder for organisations to recruit and retain talent, reveals Wiley’s latest report.
Why closing skills gaps should be a priority for your organisation

The skills gap is rapidly spreading to more organisations.

Among 600 US human resources professionals surveyed by Wiley, 69 percent said their organisation has a skills gap, up from 55 percent in a similar survey in 2021, reveals Wiley’s latest annual Closing the Skills Gap report.

Archana Jayaraj, Director APAC Talent and Head of India Operations for Wiley Edge, Wiley’s talent development solution, said that while the data is specific to the US, the skills gap is a global phenomenon, affecting India as well as other regions in the APAC. “This report serves as a call to action for companies and individuals to continue to invest in upskilling and reskilling in order to stay competitive in the global economy.”

Wiley’s research suggests companies are having an increasingly difficult time attracting and retaining workers who have the skills needed to fill their open jobs. 

During the last year, nearly half of employers in Wiley’s survey reported that at least 10 percent of their open roles went unfilled, but that figure rose to 20 percent among employers who said they have a skills gap. These challenges can cause organisations to become less efficient and less competitive.

The report suggests lingering effects of the Great Resignation may exacerbate the skills gap, as more than 40 percent of respondents said it takes more time than before to find suitable job candidates. A nearly equal number said they must offer higher pay and additional benefits to attract and retain workers. And going forward, long-term retention is respondents’ top concern (named by 40 percent) related to hiring new talent during the next three years.

While some organisations address their skills gap by hiring new employees or using contractors, the majority say they try to upskill or reskill current employees to fill the gap.

Those that lack the development initiatives and in-house resources to effectively retrain workers can instead reimburse employees’ tuition costs for training or partner with colleges or technical schools. The proportion of respondents who said more than 5 percent of their workforce used tuition assistance rose from 61 percent in 2021 to 69 percent in 2022.

The report also suggests alternate credentials are gaining on the college degree as a way to validate a job candidate’s skills. While 81 percent of respondents believe earning a bachelor’s degree positions an individual for success, 62 percent place less value on whether applicants graduated from college, with most saying they would interview non-graduates who have five years of relevant work experience, certificates from colleges or universities, and digital badges or micro-credentials. 

“This widening of the skills gap is concerning and not likely to end soon. The demand for skills keeps evolving faster, and it’s increasingly hard for companies and higher education institutions to keep up, particularly when it comes to soft skills. Indeed, there’s now a greater demand for soft skills over hard skills following the pandemic,” said Todd Zipper, Executive Vice President at Wiley. 

“Employers would be wise to invest in employee learning and development initiatives, workforce training and flexible education benefits to deal with this burgeoning skills gap and boost retention,” he added. 

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Topics: Skilling, #Hiring, #Career

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