The skills required are rapidly changing

Of course, over the ages, technological advancements have led to changes in the way labour is deployed several times over. We’re currently experiencing the fourth industrial revolution, but a key difference compared to previous shifts is that the current shift is occurring much more rapidly.

Changes in work triggered by past revolutions meant that new labour market entrants had to acquire different skills from their predecessors, with excess and out-of-date skills leaving the market as employees retire. Now, even workers who have relatively recently acquired their skills may find that they are forced to re-skill while still in employment.

Employers should take the lead in re-skilling workers

There’s no question that businesses are recognising the change in the labour market, with 66 percent of large companies surveyed by McKinsey saying that addressing skills gaps caused by automation is a top ten business priority.

Of course, employers can simply opt to rehire, making redundant those workers whose skills are no longer needed. Doing so may be difficult in markets where labour is tightly regulated, but even where dismissing workers is easy it is worth considering the alternative: reskilling existing workers.

Companies that invest the resources in workforce retraining to help their workers adapt to a changing environment stand to gain on several levels:

• Employee retention. Retaining employees can cancel out some of the costs of reskilling while serving as a pillar for corporate culture. Employee retention improves business continuity too.
• Customer satisfaction. Your customers will thank you for the in-depth knowledge that your existing employees have. In contrast, hiring new workers to fill skills gaps imply teething issues that undermine customer satisfaction.
• Improve morale, attract talent. Workers are justifiably concerned about the changes they face and will take a positive view of an employer that invests in their future. Companies will enjoy improved morale amongst existing workers, while standing out as a desirable workplace for those looking for an employer.

Good employers have always invested in the skills of their workers via continuous professional development (CPD) programs, for example. However, the scale of the task ahead is far bigger than before and tweaking skills around the edges won’t bring the desired results.