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Skilling – A key Imperative for success in the new normal as demand for tech skills touch new highs
Skilling – A key Imperative for success in the new normal as demand for tech skills touch new highs

August 31, 2021

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Demand for new skill sets have emerged as technology makes its way across industries, people are forced to work remotely, and automation and AI become a key growth lever for businesses.

According to McKinsey, Demand for technological, social and emotional, and higher cognitive skills will rise by 2030. And this expectations is only strengthened by the pandemic. What is important is to see how employees and organizations will adapt to this change.

Demand for Technological Skills will Rise…

As per the research - by 2030, the time spent using advanced technological skills will increase by 50% in the United States and by 41% Europe. The fastest rise is expected in the need for advanced IT and programming skills, which could grow as much as 90% between 2016 and 2030. And supply will remain a constrained without reskilling.

…With Digital Skills being in the lead

There is also a significant need for everyone to develop basic digital skills for the new age of automation. Among the 25 skills analyzed, basic digital skills are the second-fastest-growing category, increasing by 69% in the United States and by 65% in Europe.

Both employees and organizations will have a big role to play in order to achieve success by adapting to this changing scenario which would need:

1.       Companies to undergo a mind-set shift - A key to companies’ future success will be in providing continuous learning options and instilling a culture of lifelong learning throughout the organization.

2.       Basic organizational setup will change, with a strong shift toward cross-functional and team-based work and an emphasis on agility.

3.       Allocation of work activities will be altered, with work being “unbundled” and “rebundled” - Altering work allocation will allow companies to make the most effective use of different qualification levels in their workforce.

4.       Workforce composition will shift - More work will be done by freelancers and other contractors, a shift that will boost the emerging “gig” or “sharing” economy.

5.       Changes will also occur in C-suite and HR areas.

    Also, the future workforce will be built by:

1.       Retraining

2.       Redeployment

3.       Hiring

4.       Contracting

5.       Rereleasing – only where retraining or redeployment is not possible

Apart from companies other stakeholders also have an active role to play in reshaping the future workforce which includes Educational institutes, Industry associations as well as policy makers.

Overall, a well-trained workforce equipped with the right set of skills will ensure that economies enjoy strengthened productivity growth and that the talents of all workers are harnessed. Failure to address the demands of shifting skills could exacerbate social tensions and lead to rising skill-and-wage bifurcation, which can prove to be a big challenge in the coming years.

 

 

 

 

  


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Neha Jain
Senior Analyst

Neha Jain

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