Rapid technological change has a powerful impact on business. Emerging technologies, like generative AI (genAI), quantum computing, and immersive reality not only transform industries, they also create a pressing need for a skilled and adaptable workforce, transforming skill requirements of all businesses. Best-in-class skills management is critical because:
- Skills form the basis for improved adaptability and agility. The pace of technological change requires organizations to be agile and adaptable. Effective skills management keeps the workforce up to date, ensures that employees can embrace new technologies, and allows companies to pivot and innovate in response to market dynamics. An agile workforce is a competitive advantage in an ever-changing business landscape.
- Positive investment returns on technological spend depend on access to the right skills. Most organizations invest significant resources in acquiring and implementing new technologies. But they won’t secure great return on that investment unless they have employees who can use those technologies. Skills management boosts financial investments in new technologies by ensuring that employees have the necessary expertise to leverage their full potential.
- It enables a culture of continuous learning. Emerging tech is speeding up skills transformation, shrinking the shelf life of many skills. Organizations can bridge some of these growing skill gaps through targeted and ongoing training and development programs. The right incentives encourage employees to acquire new skills, stay up to date on industry trends, and actively contribute to their professional development.
- It helps organizations attract and retain top talent. In a competitive job market, skilled professionals are in high demand. Organizations that prioritize skills management by offering opportunities for skill development and career advancement not only attract top talent but also retain their current workforce. In turn, this type of employer brand-building enhances employee satisfaction and loyalty.
- It’s key to navigating tech disruption. Skills management can help mitigate some of the risks related to technology transformation. For example, it helps employees understand the ethical implications and potential pitfalls of new technologies. Through this awareness building, skills management helps businesses to navigate the complex landscape of technological disruption. Organizations that prioritize skills management are better placed to thrive in the face of technological disruption.
Skills management is not just a buzzword but a strategic imperative. It’s the key to unlocking the full potential of technological innovations, staying competitive, and future-proofing organizations against the broad range of uncertainties they’re facing.
Leaders must identify the most urgent skill gaps and define strategies to plug them through the right combination of training, reallocating, and hiring the required talent. Our new report How To Tackle Your Emerging Tech Skill Gaps introduces two frameworks that help business leaders address emerging skill needs.