Bridge the Workforce Readiness Gap: 3 Key Steps for HR Leaders

Disrupted by automation and globalization, traditional role-based work requirements are on the decline. Hungry for workers with data analysis expertise, complex problem-solving abilities, and the adaptability to thrive in a constantly evolving environment, skills like communication, collaboration and creativity are increasingly in focus.

This shift has exposed a workforce readiness gap or the ability to develop and build skills to meet workplace expectations. Closing the gap is challenging as evolving work norms, new technologies and economic uncertainties make it difficult for employers to pinpoint the skills needed within the workforce to better adapt to change.

Workforce Readiness Gap Often Not Recognized

According to Cornerstone’s Workforce Readiness Gap report, only 45% of leaders recognize the existing skills gap, with 78% reporting that the lack of visibility into skills puts a burden on an organization. In addition, the data shows employers and employees are misaligned on training initiatives. While 80% of leaders believe their workforce receives adequate training, only 42% of employees agree, which is further contributing to the widening skills gap.

As the workforce readiness gap continues to grow, employers must turn to workforce agility – the ability for the workforce to respond to change – which requires providing people with the right skills at the right time for the right role, in a personalized way. Research from McKinsey found that agile organizations are nearly three times more likely to outperform others in their industry. And Deloitte found companies prioritizing agility record greater levels of employee agency, customer satisfaction and innovation.

Agile environments encourage employee decision-making and ownership of work. This fosters a sense of empowerment and fuels intrinsic motivation within the workforce.

 Developing a workforce agility strategy centered around skills and creating a future-ready organization is important, but how can leaders get started?

Narrowing the Workforce Readiness Gap in 3 Steps

Developing a winning workforce agility strategy requires a multi–step approach complete with research, personalized program development and progress assessment (with clearly articulated baselines). The three main steps to future-proofing the workforce include:

1. Identify the Skills Gap Early

Identifying what gaps exist within the workforce will help leaders understand the skill sets and competencies that need to be prioritized. One of the biggest challenges leaders face when approaching skills development is not knowing employee skill levels or which skills are lacking.

According to the Cornerstone survey, 72% of global employers acknowledge that not knowing employee skills puts a cost or burden on their organizations, and as skills become the currency of the modern workforce, transparency and clarity of employee data are critical.

Some employers are turning to a skills ontology, a framework that helps businesses understand how skills relate to one another, where they may be equivalent and the roles in their organizations where they might be used. These support identifying skills gaps in a data-driven way, creating a baseline measure of skills from which to measure improvement.

Technology and AI software solutions can also be utilized to address this pain point, however, more than half of global employers report their current learning technology doesn’t allow them to see data in an actionable way. Organizations looking to improve workforce agility and reduce the workforce readiness gap must ensure any technology implemented pinpoints exactly where skills gaps exist and gives organizations a clear picture of what they have and what needs to be improved.

2. Create a Skills-Based Approach to Training and Development

Once skills gaps are identified, companies can develop a more effective skills-based strategy for employee programs focused on people development. There isn’t a one-size-fits-all approach to talent development, so to achieve the best results, programs should be tailored to the individual needs and preferences of employees. Here are a few tips for developing a training and development program:

• Connect learning to career growth. While personalized, tailored programs can help improve the skills gaps, leaders should also inspire and engage employees in their upskilling and reskilling journeys. It is not enough to tell employees what skills they need to learn, employers should also share why having that skill is beneficial, convey that need and tie it to a career growth opportunity.

• Enable easy access anywhere. For employees, carving out time in hectic, fast-paced work schedules for meaningful development and learning can be challenging. Therefore, providing flexible, self-directed learning programs could be beneficial. By making content easy to access and time flexible, employees will have the opportunity to devote their full attention and time to their development rather than doing it to check a box.

• Use AI to guide workers. AI can be used to upskill workers by generating personalized learning programs based on an individual’s needs and learning preferences. Using one uniform plan for all employees is not as effective as providing tailored options to employees based on their learning preferences. AI can analyze these preferences and develop plans to make upskilling more accessible for all employees.

• Promote social learning and collaborative experience. By incorporating elements of social learning, such as group projects or cohort-based training, organizations can create a sense of community and belonging among participants. Imagine a training program structured around a dedicated cohort – a group of colleagues who progress through the program together. This cohort fosters a sense of shared responsibility and creates opportunities for peer-to-peer learning. Group trivia exercises, for example, can become a fun way to reinforce key concepts while encouraging collaboration and healthy competition.

While there may be some trial and error in developing a strategy that works well for a company’s unique workforce and personnel, these tips provide an initial jumping off point to hone and perfect skills-based learning programs.

3. Assess Progress, Identify Areas of Improvement

Maintaining a successful upskilling and reskilling program requires continuously assessing progress and pinpointing workforce strengths and weaknesses to build on or prioritize. Tracking progress against goals, such as new skills development, customer satisfaction, profitability and business growth, is key for evaluating whether learning and development programs are successful. Be mindful that whichever goals are in play, you want to benchmark them to truly measure this progress.

Measuring new skills development is a tangible way to evaluate whether a company’s upskilling efforts are successful. In comparing post-training skills data to benchmarked data used to create the training programs, leaders can track improvements, identify where gaps still exist and decide where to focus resources. But go further in that measurement: Does it help you increase revenue, lower cost or lower risk? Those are the drivers of business outcomes.

Often dismissed as overused, employee satisfaction and engagement are also key metrics to track when evaluating progress towards workforce agility. With employee engagement in the U.S. at an 11-year low, according to Gallup, it is critical to create programs aimed at inspiring and re-engaging employees. If employees feel employers are providing the tools necessary to grow their careers, they will likely show more interest in their work. Tracking employee engagement in tandem with new skills development is a potential key performance indicator for an effective workforce agility strategy.

It bears repeating that creating an agile workforce will lead to higher productivity and innovation within the organization, making business growth and profitability a key metric to track for evaluating training programs. Simply done in terms of a “per employee” measure, whether it be Revenue Per Employee or otherwise, such a measure has a tangible outcome. When employees are equipped with the necessary skills to be successful, it will lead to greater productivity and innovation, and in turn, business growth.

Meet the Demands for Agility

The workforce readiness gap isn’t a temporary hurdle; it’s a constant challenge that demands a proactive solution. By embracing agility, companies can close this gap through:

• Early identification of skill deficiencies
• Personalized learning programs tailored to individual needs, and
• Continuous improvement initiatives that foster a culture of learning.

These actions not only bridge the skills gap but also empower employees, boost retention and make the entire organization more adaptable to change. The benefits extend beyond the bottom line – agility fosters a thriving, future-proof workforce ready to meet any challenge.

This is the real call to action for every organization: embrace agility and shape your own future.