In the wake of The Great Resignation and Quiet Quitting craze, organisations are grappling with a massive talent shortage. The scarcity of skilled workers is a pressing issue that hampers growth, productivity and innovation across industries. Unfortunately, the forecast isn’t exactly bright: the talent shortage will become even more severe due to emerging mega trends, shifting demographics and advancements in AI and automation. A recent report indicates that by 2030, there will be a global human talent shortage of more than 85 million people.

To address this challenge, organisations must focus on improving the employee experience and implementing targeted training programs that enable upskilling and reskilling. By doing so, companies can cultivate a highly skilled workforce, retain talent and gain a competitive advantage in the market.

 

What is Employee Experience and why is it so important?

Employee Experience (often shortened to EX) is a worker's overall impression—how they see, think and feel—about their journey at a particular company. An organisation’s physical workspace, company culture and technology tools are all crucial to this. An Employee Experience Program (EXP) is the new core of HR technology. It has emerged as one of the key factors in successfully adapting to changing priorities and workplace challenges driven by the pandemic.

Simply put, happy employees are more productive, engaged and committed employees. A positive employee experience supports a deeper dedication to the organisation—people are more likely to promote their company as a great place to work, leading to increased referrals, fill rates and profitability.

 

Taking on the current skills gap and impending talent shortage

The skills gap, characterised by the mismatch between the skills possessed by the workforce and those required by employers, has created a significant barrier to growth and development. As technology continues to advance at an unprecedented pace, the demand for new and specialised skills is soaring —but traditional education systems and talent acquisition methods are struggling to keep up, resulting in a lack of qualified candidates for critical positions.

Mega trends, such as digital transformation, globalisation and the rise of AI and automation, further exacerbate the talent shortage. These trends reshape job requirements and demand a more agile and adaptable workforce. Additionally, shifting demographics, including the retirement of the baby boomer generation, place an additional strain on the availability of skilled talent.

 

What are the benefits of upskilling and reskilling programs?

According to Microsoft’s 2022 Work Index Report, 76% of employees say they'd stay longer at a company if they could benefit from learning and development support. Additionally, a global Deloitte study finds that 89% of executives say skills are becoming important for the way organisations are defining work, deploying talent, managing careers and valuing employees. Implementing upskilling and reskilling programs offers a multitude of benefits that go beyond filling immediate talent gaps:

• Improved employee experience: These programs demonstrate a commitment to employee growth and development. By investing in their employees' skills, organisations create a culture of learning and empowerment, fostering greater engagement and loyalty.
• Enhanced DEI support: Upskilling and reskilling facilitates diversity, equity and inclusion efforts by providing minorities and underrepresented groups with the necessary resources and support to thrive in the workplace. By ensuring equal access to training opportunities, organisations can build a more diverse and inclusive workforce that reflects the broader population.
• Stronger talent acquisition: Rather than relying solely on external hiring, organisations can develop internal talent pipelines to fill critical positions. By investing in their employees' growth and enabling them to acquire new skills, organisations ensure a sustainable talent pool from within their ranks.

 

The bottom line

The talent shortage is a critical challenge that organisations must address to ensure growth and competitiveness. By prioritising employee experience and implementing targeted training programs, companies can cultivate a highly skilled workforce and retain talent. Employee experience plays a crucial role in creating a positive work environment, increasing productivity and promoting employee loyalty.

Upskilling and reskilling programs not only fill immediate talent gaps but also demonstrate a commitment to employee growth, leading to improved engagement and loyalty. As mega trends and shifting demographics continue to reshape the job market, organisations must invest in their employees' skills to navigate the future successfully. By doing so, they can overcome the talent shortage and thrive in a rapidly evolving landscape.

Essentially, when employees feel supported, valued and empowered in their career development, their engagement and productivity soar. The connection between learning and career growth serves as a powerful motivator for both employees and managers, driving performance and fostering a culture of continuous improvement.

 

Candace Stephens 

Content and Communication Manager at LMS365