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Key Trends Shaping the Rise of “The Skills Based Economy”
Key Trends Shaping the Rise of “The Skills Based Economy”

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This morning, I got a chance to read through the “Udemy Business / 2024 Global Learning & Skills Trends Report” which talks about the key trends in Global Learning and Skills which remains a key discussion point in Future of Work arena.

With an ever-evolving technology skills landscape it is no surprise that the report starts with the discussion on “The Skills Based Economy”, highlighting that skills remains the factor which will ultimately determine whether a company can execute on its business strategy and deliver on its goals in the current times. Thus, more and more companies are starting to understand the value of the skills-based economy and evolving to become skills-based organizations.

Three key trends that will be core to Future of Work in 2024

The report highlights three key trends that will help organizations to formulate their future work/workplace/workforce strategy:

  1. Need to navigate the skills landscape.

It is essential to assess, identify, develop, and validate the skills their teams have, don’t have, and need, in order to remain innovative and competitive.

 

    1. Focus on the skills required to perform a job — versus the way those skills were acquired. This opens up new avenues for employee growth, talent mobility, overall business scalability, and also an equitable workforce.
    2. Leaders will need to think differently about the employee lifecycle, from how they recruit to how they engage, reward, develop, and manage talent.
    3. The narrative is shifting from “We need people who can fill these jobs” to “We need people who have these skills.”

For example, in a skills-based organization, formal qualifications or degrees may be applicable for some job functions, but in others the focus and weighting is centered more on the skills and experiences an individual can demonstrate.

Source: Udemy Business / 2024 Global Learning & Skills Trends Report

 

    1. Post the Gap Assessment the next step is skills development and Validation

Many leaders are currently faced with the challenge of not being able to systematically and effectively assess and validate their teams’ mastery of skills in line with industry norms and standards. This is where recognized skills validation in the form of assessments, certifications, and badges plays

a key role.

Udemy has witnessed 10 million IT certification preparation enrollments across its platform in an year, across both business and individual learners. Some of the key certifications and badges across technical skills icnlude DevOps, continued

cloud adoption, modern programming, and cybersecurity. Among business learners. On the enterprise application, the top certification is the Professional Cloud DevOps Engineer certification for Google Cloud, growing 1,454% year-over-year.

 

 

  1. Adapt to the rise of AI: Including how generative AI and automation are disrupting the way we work as well as their role in supporting the move to a skills-based approach.
    1. McKinsey estimates that as much as 30% of current work hours in the US economy could be automated by 2030, due in large part to generative AI, which has the potential to at least partially automate as many as 300 million jobs, according to Goldman Sachs.
    2. PricewaterhouseCoopers reports that, “AI, robotics and other forms of smart automation have the potential to bring great economic benefits, contributing up to $15 trillion to global GDP by 2030.”
    3. So as some types of work and jobs become obsolete, new types of work and jobs are created which are more meaningful and creative forms of employment, improving the human work experience, rather than replacing it.
    4. Nearly every job is likely to be affected by these new tools, with 82% of the global leaders Microsoft surveyed saying that their employees will need new skills to be prepared for the growth of generative AI.
    5. The key to successful adoption of AI is to take a collaborative intelligence approach. This is where the combined power of human and artificial intelligence come together to supercharge learning and outcomes.

For example - AI has the potential to automate the identification and mapping of skills needed to skills available in an organization through intelligent skills gap analysis. Post which a human resource can be leveraged to to verify that these skills map to your organizational objectives and to activate the skills in the workplace.

 

  1. Develop strong leaders: Who can lead through change and build resilience across their teams.
    1. Changes in how we work requires changes in how we lead – The traditional profile of the leader who allowed organizations to deliver consistency in their business processes is being replaced by the leader who is the ultimate learnerwho can help teams to adapt, innovate, work horizontally, and engage partners.
    2. Organizations must invest in their leaders and leaders in turn must invest in their teams, helping them navigate all of these changes while staying productive and avoiding mental and physical burnout.
    3. Leaders need to support their teams to emerge better than they were, with new skills, a higher level of engagement and commitment, and the resilience and agility they need to tackle the next big challenge and excel.

 

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Source: Udemy Business / 2024 Global Learning & Skills Trends Report

 

An Integrated Skills Framework – Answering the "How" Part of It

 

It is a difficult task to navigate the transition to a skills-based approach. The interdependencies are complex. In fact, Deloitte found that 9 out of 10 executives are looking to use skills as a way to define work, deploy talent, and manage careers,

but only 1 in 5 are adopting a skills-based approach to a meaningful extent. It is clear that the “why” is well understood but the “how” remains a difficult knot to

untie.

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Source: Udemy Business / 2024 Global Learning & Skills Trends Report

 

Overall, the report was a good read, highlighting the "Why" and "How" of Upskilling and Reskilling, which are the cornerstone for the “Skills Based Economy” that we need in the current times.

If you need more details – you can check the report “Udemy Business / 2024 Global Learning & Skills Trends Report”. Follow nasscom community for more such discussions on Skills, Future of Work, Talent and much more. 


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Neha Jain
Senior Analyst

Neha Jain

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