Digitalization and changing demographics are significantly impacting the employment landscape, highlighting a lack of employees with the right skills to fill current and, increasingly so, future jobs as a result of new technology and a shift in the make-up of the population and workforce. 

With the pandemic, it has fundamentally shifted employment patterns and, in some instances, accelerated the need for qualified workers.

Technological advancements

According to The Future of Jobs Report 2023, published by the World Economic Forum, the labour market will have changed substantially, with two million jobs likely to be displaced due to the adoption of new technologies.

This is a group who are likely to need re-skilling so they can find another role within the same company or elsewhere, or upskilling, so they can continue to meet the demands of the new technology.

But as one door closes, another opens. Those who step through will be the ones with the right skills. Sure, AI may write the article, but who quality checks it? Who decides what needs to be written? And no, this article wasn’t written by artificial intelligence (AI) in case you’re wondering, but realistically, it could have been.

Shifting demographics

With people living longer as a consequence of better healthcare and lifestyle, it brings many repercussions, not least people now working for longer.

But that’s not only being driven by an opportunity and motivation to work to an older age, it’s also a fallout from the pandemic. According to a Legal & General Retail Retirement Study, 1.45 million people plan to delay retirement by more than 3 years on average as a result of its financial impact.

However, the same study also notes that the number will be offset by over a million people who saw the pandemic as an opportunity to reevaluate their lives and retire early…and that’s a problem.

The Federal government are concerned with the level of ‘inactivity’ and its impact on economic growth, is looking at ways to reverse the trend and get those who can work back into work.

Earlier and later retirement both bring challenges for companies, whether that’s ensuring workers who stay on longer remain tech-savvy by upskilling them or replacing the skills of those ending their working life sooner than anticipated. 

Of course, people living longer affects some industries more than others. Canada’s health care system, for example, already facing a loss of workers since the pandemic, must provide the extra care. Likewise, the construction industry will need to build the infrastructure that accommodates Canada’s growing population.

Attain, retain, retrain

In many cases, companies are finding it hard to adapt to the rapid changes and struggling to introduce the level of learning needed to close the skills gap in order to embrace new opportunities. 

Indeed, according to McKinsey & Company, 87% of organizations fully recognize the need to bridge their organization’s skills gaps.

With the gap only going to widen if not addressed, it’s important that they do so, and quickly.

Not only does a skills gap mean a company can’t perform to the best of its abilities, but it also creates job dissatisfaction for employees lacking a sense of purpose with their inability to develop and contribute.

Introducing training and development can help upskill employees to continue doing their job confidently and competently, or re-skill them for a new one, and in doing so, increase their chances of remaining with the company rather than resigning or retiring.

That’s reinforced by our research, which revealed that those who said they received learning or development opportunities to further their career are 2x as likely to be committed to the company. 

That’s further confirmed by the LinkedIn Learning report, which found that 94% of employees would stay at a company longer if it invested in their learning and development.

But training isn’t only effective at retaining employees, but also in attracting them. With an already small pool of suitably skilled workers to fish in – forecast to only get smaller – the promise of receiving effective training is a selling point for prospective employees, especially amongst younger workers.

A Deloitte survey of Gen Z and Millennial employees suggested that when it comes to attracting staff, one of the top three reasons they take a job is because of the learning opportunities.

Three ways to reinforce your learning

Purpose + Meaning = Engagement.

With the skills gap growing, engagement in learning and development will be vital to the long-term sustainability of organizations. From our research, we know the key to engagement is helping employees, distributors, or channel reps find purpose and meaning in their work. Therefore, your learning and development strategy also needs to support this mission.

Three ways you can do this are by focusing your strategy on Motivation, Location and Personalization.

Click here to read more on how to integrate these elements into your strategy and elevate learning and personal development within your organization.