The skills gap is a phrase often used to describe the difference between the skills that employers want from an employee, and those that current workers searching for a job actually posses. According to a 2017 CareerBuilder survey, the current skills gap is costing companies nearly $1 million annually in everything from recruiting to training costs. With so much money flying out the door, it’s no surprise employers are becoming increasingly concerned, especially when you consider that the unemployment rate has hit a record low creating a hyper-competitive hiring landscape. How can employers prevent falling victim to the skills gap? Check out these five tips.
1. Early identification
The first step in preventing a skills gap within your workplace is early identification. In order to effectively start this process, a business must first build out a list of the specific skills required for success and then compare it to the skills that current employees possess. Once areas of improvement are identified, employers can build an action plan to eliminate the current deficit. With nearly 52 percent of employers reporting a skills gap at their organization, it’s important that this early identification process is thorough.
2. Know your industry
If a business has a skills gap within the industry, it’s highly likely that competitors are experiencing similar pain points. Keeping an eye on competitors and industry trends is vital to success. For example, check out competitor job postings and take note of what requirements they look for in a candidate. Maybe there are certain skills that hadn’t been considered in the past, but are necessary to keep up with the industry landscape. This attentiveness will help businesses avoid surprises and properly invest in skills development toward areas with actual growth potential.
3. Encourage continued education
To really face the skills gap head on, continued education and development should be ingrained into the company culture. Industries are constantly changing, which means that a workforce needs to be prepared to change along with it. Continued learning opportunities are especially effective in helping employees keep up with this pace. In fact, increases in workforce education level have reportedly increased employee productivity by 8.6 percent. By offering online training modules, or holding weekly training sessions on various topics, employers can make education part of the daily routine.
4. Promote internally
When it comes time to hire a new senior level employee, it’s often easier to promote from within rather than seeking an external candidate. Many businesses have switched their focus to hiring from the bottom and bringing in a younger workforce who they can then train and promote internally over time. This is often more successful because it not only reduces the skills gap, but is also more attractive to recent grads and younger candidates.
5. Advocate for effective policies
Believe it or not, improving training and changing hiring efforts isn’t the only way to effectively close the skills gap. Policy changes can make a difference as well. For example, IBM has proposed legislation that aims to improve technical training ability by pushing for policies to renew and expand financial aid for short-term learning opportunities. This type of policy prioritizes academics and certification not only within a business, but an entire industry.
Businesses can no longer sit back and watch the skills gap continue to expand — it’s time to face it head on. By implementing proper policies, focusing on continued education, and identifying weaknesses early, the skills gap may become a thing of the past.
For more information on improving workplace productivity check out our blog on six ways to boost employee productivity!
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