Revolutionising the Labour Market: Unleashing productivity by putting skills first.
In the ever-evolving landscape of industries, accessing and retaining talent has become a critical concern. Recent data from the World Economic Forum (WEF) reveals that a staggering 61% of businesses are worried about the availability of skilled individuals in the next five years. This concern is more pronounced in industries such as Supply Chain and Transportation, Health and Healthcare, Manufacturing, and Retail, where talent shortages pose significant challenges to growth and innovation.
Only 39% of businesses express optimism about talent availability, compared to 53% for retention and 77% for talent development. It would seem that the case for a skills-first approach to talent is unimpeachable.
The Skills/experience mismatch
Analysis of the Future of Jobs Report 2023 shows that most employers rely on degrees and job history, and less on skill assessments as their key hiring method. However, 58% of workers believe they have skills that are unclear from their qualifications or job history. This mismatch needs to be addressed. By aligning skills metrics with broader organisational goals, such as improved productivity and more efficient hiring, businesses can ensure that their workforce is equipped with the skills necessary for success.
We, at Speakers for Schools, encourage this approach in our work experience programme. Our partner employers publish essential skills young people will gain when advertising their work experience opportunities, and this allows young people to apply for opportunities to upskill in specific areas and allows us to measure the impact of work experience through the skills they have gained.
Closing the ‘Network Gap’
We know that the ‘network gap’ in career opportunities often reinforces existing disparities, hindering the potential for merit-based advancement and reinforcing social and economic barriers. By prioritising a skills-first approach, businesses can close the gap, unlock fresh talent pipelines, enable social mobility, and level the playing field for those without the old-school ties network.
As industries grow, tracking skills gaps for potential employees in the talent pipeline becomes more critical, as it helps to highlight what industries can do to close the gaps efficiently. This is where organisations like ours can play a key role. By leveraging our UK-wide network of schools, businesses can streamline the process of identifying and addressing skills gaps and creating a more agile educational outreach programme to start plugging those gaps.
Local and central government also needs to develop and implement robust policy frameworks that encourage and support skills-first initiatives. This involves aligning educational curricula with industry requirements by ensuring every young person gets at least two weeks of meaningful work experience during their secondary education.
The apprenticeship system must also be reviewed to ensure that schools get the financial backing to provide opportunities for young people to learn directly from employers about vocational routes into industries.
Analysis of the Future of Jobs Report 2023 shows that most employers rely on degrees and job history, and less on skill assessments as their key hiring method. However, 58% of workers believe they have skills that are unclear from their qualifications or job history. This mismatch needs to be addressed. By aligning skills metrics with broader organisational goals, such as improved productivity and more efficient hiring, businesses can ensure that their workforce is equipped with the skills necessary for success.
The Future of Jobs Report 2023 estimates that 44% of worker’s core skills will change in the next five years. The onus is on the education systems to embrace skills-first approaches to prepare their students for the rapidly changing world of work. By collaborating with employers, the traditional focus on exam assessment can be reconfigured to address talent needs in our economies effectively. Practical career guidance from employees in the field helps students make better-informed decisions about their educational progression options. By connecting students with industry professionals, educational institutions can offer insights into current job market demands and guide students towards areas where their skills are most needed.
What’s next?
In conclusion, the success of skills-first approaches relies on collaborative efforts between governments, employers, and the education sector. That is why we launched the Work Experience for All campaign last year to ensure that every young person gets a chance to access high-quality, meaningful work experience regardless of where they live or who their parents know.
As we approach the upcoming election, this is a wake-up call for all political parties to prioritise the necessary reforms that will foster the development of confident, skilled, and knowledgeable young people and enhance the talent-to-employment pipeline that will contribute to a more productive and innovative business environment.