Change is the only constant. Rather than being swept away by the tides of transformation, we must learn to navigate them. To stay afloat we must adapt to rapid change, embrace future skills, and preserve our humanity in an increasingly technological world.
As the author Robert Greene once so eloquently put it, ‘The future belongs to those who learn more skills and combine them in creative ways’.
Indeed, given that 44% of core worker skills are projected to change by 2027, continuous learning is no longer optional. Nearly half of our working life is set to be upended. In fact, 6 out of 10 workers will require additional training to adapt to this rapidly evolving landscape.
This article will explain the concept of future skills, explore the forces shaping the future of work, and provide a step-by-step guide for assessing your organisation’s skill needs. We’ll also highlight some in-demand skills you should consider.
Ready? The future’s calling…
What are Future Skills?
As the world changes, so too must our skill sets. Future skills are the abilities and competencies that will be in high demand in the future workforce. These abilities empower individuals to adapt to change and seize opportunities.
We can categorise skills into two main brackets:
- Hard Skills: Hard skills are technical abilities that can be learned and measured. These skills are often industry or role-specific. For instance, to excel in your role, you may require proficiency in specialised software or machinery. As technology evolves, you’ll need to continually upgrade your hard skills.
- Soft Skills: Soft skills are interpersonal or cognitive skills that are essential for effective communication and collaboration. By nature, they are often more difficult to quantify and measure. The ever changing nature of work will necessitate a shift in the soft skills we prioritise.
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The Forces Shaping The Future of Work
We’re living in a time of unprecedented and profound transformation. Amidst this whirlwind of change, it’s essential to understand the key forces that are driving the future of work, and how they’ll affect individuals and organisations alike.
- Technological Advancements: The rapid pace of technological advancement is fundamentally reshaping our world. Billions of dollars are being poured into artificial intelligence research, processing power is increasing, and 90% of the world’s data has been generated in the last two years. Remaining competitive in the digital age requires continually adapting as technology improves.
- Economic Shifts: While the global economy is currently growing at a steady 3.2%, significant shifts have already transformed the business landscape. For example, 36% of the American workforce is now freelancing. What’s more, e-commerce is booming, with 20.1% of retail purchases now taking place online. Add to this geopolitical tensions and supply chain disruptions, and it’s clear that an adaptable skill set has become a necessity.
- Globalised Workforce: Our increasingly digital world has brought forth unprecedented levels of globalisation. In fact, today’s world trade volume is roughly 44 times the level recorded back in 1950. To thrive in this context, individuals need to cultivate intercultural competence, language skills, and the ability to collaborate with people from different backgrounds.
- Demographic Changes: Demographic trends are also reshaping the skills landscape. As older generations retire, there may be shortages of experienced workers in certain sectors. Conversely, we’re now seeing younger generations and digital natives entering the workforce. This generational divide is already evident. In fact, 47% of Gen Z employees feel that older workers slow things down through outdated working practices.
- Job Market Demands: Unfortunately, automation will displace workers. However, it will also create new opportunities. By 2027, an estimated 97 million new jobs are expected to emerge. This shift will drive demand for professionals in fields like data science, machine learning, and cyber security. As you would expect, these roles will require a new set of skills and competencies.
How to Assess Your Organisation’s Future Skill Needs
To ensure your organisation is well-equipped to navigate these changes, you’ll need to conduct a thorough assessment of your current capabilities and future skill needs. This is what’s known as a training needs analysis (TNA). Not sure where to start? Don’t worry, we’re here to help!
Step 1: External Analysis
You can’t assess your future needs without understanding the broader context in which you operate. To achieve this, you’ll need to conduct a thorough external analysis of the emerging trends that will impact your industry. In particular, you should focus on:
- Industry Analysis: First things first, you’ll need to understand the competitive landscape you’re operating within. Without the right market research data you’ll be flying blind. However, once you’re armed with the right information you’ll be well-positioned to identify opportunities and avoid potential threats.
- Technological Analysis: Next, consider the impact of emerging technologies. What sort of role will artificial intelligence (AI), automation, and the Internet of Things play in your sector? Identify the benefits and challenges of each new solution. Then consider how you’d prioritise their adoption based on your current needs.
- Economic Analysis: Economic trends have the power to make or break all your best laid plans. With this in mind, take some time to consider economic factors like inflation, interest rates, and global economic conditions. You won’t always be able to see these changes coming, but it’s good to be ready for anything.
- Regulatory Analysis: The regulatory landscape is constantly evolving, with new laws and guidelines being introduced at a rapid clip. To stay ahead, it’s essential to remain informed about any regulatory changes that could impact your industry. This proactive approach will help you to develop effective compliance strategies.
Step 2: Internal Analysis
Now you know what the world outside your window looks like, it’s time to turn inward. At this stage, you should assess your organisation’s current strengths and weaknesses. This will provide the insights needed to drive continuous improvement.
- Review Your Objectives: To anticipate future needs, you must first assess your current goals. Start by evaluating your organisation’s strategic goals, key objectives, and major initiatives. This information is crucial, as it gives your organisation a sense of purpose and a clearly defined direction.
- Determine Core Competencies: Based on your understanding of your goals and objectives, you should now be able to identify the core competencies your organisation requires. Create a list and prioritise them according to their strategic importance. Additionally, consider the skills and knowledge required to maintain these competencies.
- Conduct a Skill Inventory: With this information in mind, it’s time to establish your organisation’s current state of play. To do this, you’ll need to conduct an inventory of your employee’s skills and experience. This will require collecting data from various sources, including employee profiles, performance reviews, and surveys.
- Consider Your Values: Finally, consider how your organisation’s culture and values align with your future goals and skill requirements. Will they support or hinder your growth? By aligning your strategies with your values, you can create a more engaged, motivated, and productive workforce.
Step 3: Gap Analysis
You now have a clear understanding of your employees’ current skills and knowledge, alongside the external trends shaping future industry needs. Equipped with this information, you can effectively identify and address any skills gaps within your workforce.
A skills gap analysis will help you to pinpoint the specific areas where your team lacks the necessary competencies to achieve your strategic goals. Remember, you’re not just assessing your current situation. You also need to consider the skills that will be required for future roles or initiatives.
Next, determine which skills gaps have the greatest impact on your organisation’s strategic goals. This will help you to prioritise your development needs and allocate training budget and resources effectively.
Need more support? We’ve got a full article on skills gap analysis here.
Step 4: Development Plan
Once you know your organisational skills gaps, it’s time to take decisive action and future-proof your workforce. Here are three key strategies to address skill deficiencies and empower your team.
- Training & Development: Skills gaps can be resolved by investing in training and development programmes. Even here, there are a variety of options for you to consider. For instance, you can offer structured courses and workshops (formal learning), coaching and mentoring initiatives, or flexible online courses.
- Recruitment & Hiring: If your training efforts are unable to fully address your skills gaps, you may need to look externally to recruit and hire top talent. To attract the right candidates, develop a recruitment strategy that emphasises the future skills you need within job descriptions and interviews.
- Performance Management: The final piece of the puzzle is performance management. Implementing the right systems and processes will help you to foster a culture of continuous improvement. You’ll also need to ensure your employees are motivated to develop new skills and provide regular feedback and coaching.
And there you have it. By following this structured approach, you’ll be able to assess your organisation’s future skill needs and develop a potent strategic response. It won’t be an easy process, but by following these steps, you will succeed.
In-Demand Skills for the Future
Every organisation has unique skill needs, but certain skills are consistently in high demand. Indeed, the following set of hard and soft skills are likely to be crucial to your success for years to come.
Future Hard Skills:
- Artificial Intelligence: Understanding and applying AI and machine learning techniques will help to automate tasks and drive organisational efficiency. However, according to a recent survey, 70% of workers still need to upgrade their AI skills.
- Data Science: Back in 2020, a World Economic Forum report identified data science as the field with the largest skills gap. While things have changed since then, the fundamental need to collect, analyse, and interpret large datasets persists.
- Cybersecurity: To protect sensitive information and systems from cyber threats, organisations need skilled professionals. In fact, 70% of survey respondents agree that cybersecurity skill shortages create additional risks for their organisations.
- Cloud Computing: Cloud technologies can help organisations to develop a competitive edge in the digital age. Indeed, 85% of IT professionals agree that a lack of expertise in cloud operations has impeded their ability to achieve business goals.
- Automation: Two-thirds of knowledge workers agree that automation has helped to make them more efficient. To fully harness this productivity, your employees will need the skills and knowledge necessary to use automation systems.
Of course, we’re just scratching the surface here. Depending on your specific needs, you may also want to consider digital skills like social media marketing, UX design, and e-commerce. Additionally, skills like project management, financial analysis, and software development are essential for many organisations.
Future Soft Skills:
- Critical Thinking: 78% of business executives agree that critical thinking is the most essential skill for employees. After all, the ability to analyse complex problems and devise the appropriate solution means you’re ready to tackle any challenge.
- Creativity & Innovation: Innovation requires brave and creative thinking. Unfortunately, 85% of executives agree that fear holds back innovation efforts within their organisation. To overcome this, your employees will have to learn to take risks and think outside the box.
- Adaptability: Did you know that almost half (44%) of employees don’t recognise adaptability as a skill they possess? In today’s rapidly changing world, adaptability is a crucial skill for navigating challenges and capitalising on emerging opportunities.
- Resilience: Rapid change often leads to uncertainty, stress, and anxiety. Thankfully, resilience training can significantly mitigate these effects and reduce average depression symptoms by 33% to 44%. This helps your team to thrive in dynamic environments.
- Empathy: In our increasingly digital world, human skills like empathy will become something of a superpower. This is reflected in the fact that 76% of employees with empathetic managers report higher levels of engagement.
- Communication Skills: 72% of business leaders agree that good communication increases productivity at work. After all, communication skills help your employees to articulate their ideas clearly, both verbally and in writing.
- Digital Literacy: An estimated 90% of jobs across Europe now require basic digital knowledge and skills. And this is just the beginning. As digital transformation accelerates, your employees will need to expand their digital skill set to keep pace.
The list of beneficial soft skills doesn’t stop there. For instance, you should also consider cultivating your employees’ emotional intelligence, active listening ability, and leadership skills. Additionally, you should seek to encourage curiosity and a love of lifelong learning. This brings us neatly to our final section.
How to Encourage Lifelong Learning
Thinking about future skills is like being in constant motion. After all, it’s a continuous process. Once you’ve addressed your current skills gaps, you’ll then need to shift your focus back to anticipating future needs.
There’s two ways of looking at this. You could see it as an exhausting loop. Alternatively, you might view it as an opportunity to foster the right sort of culture within your organisation — an ethos and a focus that looks forward instead of backwards.
Indeed, high-performance learning cultures like this have been shown to be 37% more productive and 17% more likely to be a market leader. In other words, getting your learning culture right has a meaningful impact on your organisation’s bottom line.
To get there, you should focus on building learner curiosity and a growth mindset. You can do this by moving from a pedagogical (teacher-centred) approach to a heutagogical (self-directed) approach. This involves providing the right resources, guidance, and support to empower learners to take ownership of their development.
Final Words
Even if your organisation is thriving in the current digital landscape, you can’t afford to rest on your laurels. The world is moving too quickly for modern learners to sit still. With this in mind, it’s clear that investing in future skills has become a business imperative.
This raises the question: which specific skills should you prioritise? This article has detailed a variety of hard and soft skills that are important now, and will be even more important in the future. However, to truly future-proof your workforce, you’ll need to proactively identify and address your organisation’s specific skill needs.
The time to act is now. It’s better to ride the crest of a wave than be underneath it. By prioritising the development of future skills, you can unlock your team’s potential and safeguard your organisation’s long-term success.
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