When we talk about the future of work, the discussion often dissolves into which jobs are coming, and which are going.
Jobs do come and go. But for most people, jobs change. So do the skills required to perform them, even if the job title remains the same.
Consider this: the number of skills needed for a single position is increasing by 10% year over year. By 2025, over half of all employees will require significant re-skilling and upskilling.
This reality has led to a growing skills shortage — an urgent challenge where the gap between employee capabilities and future job requirements is widening. For forward-thinking organizations, filling these skill gaps is becoming a business necessity.
In this article, we’ll discuss why skill development is critical for organizational well-being and how to future-proof your workforce with the right skill development.
Leveraging Skill Development to Prepare Tomorrow’s Workforce
From the C-Suite down, the pressure to develop new skills is felt at every level. Yet, 59% of workers report having received little to no formal workplace training, with many of their skills being self-taught.
Organizations play a critical role in preparing their people for future roles, providing them with the right conditions to learn and the opportunities to develop. Those that prioritize skill development are better positioned to:
Attract and Retain Top Talent
Hungry for development opportunities, employees are increasingly drawn to organizations with strong learning cultures.
According to a new report, 32% of employees who changed jobs within the past year did so to learn new skills, while another 26% did so for more or better training opportunities. The same study also found that employees in fields like IT and HR are more likely to leave their jobs out of a desire to learn new skills.
When organizations deliver opportunities for skill development, they can reduce unnecessary turnovers, further strengthening their talent pool.
Build a Well-Rounded Workforce
If you think the skills shortage is exclusive to technical skills, think again.
In one survey by McKinsey Global Institute, executives in Europe and the United States expressed a need not only for technological skills but also social and emotional ones like critical thinking and creativity. Another study by Boston Consulting Group found that tech-centric jobs now demand a balance of soft skills, including leadership, effective communication, and the ability to build relationships.
Developing strong soft skills is especially critical for leaders. After all, leaders are influential drivers for team success, and provide organizations with a strategic edge in the talent marketplace. For instance, when leaders possess strong soft skills, they can increase their team’s engagement and performance by up to 30%.
The Right Approach to Leadership Skill Development
Today’s leaders are working against a backdrop of constant change — from technological advances to volatile market shifts. It’s not enough for leaders to have business acumen; they also need critical relationship skills to support their teams through these changes.
Traditional skills training is one of the most widely used methods for leadership skill development. Yet, according to a Harvard Business Review report, it ranks at the bottom for effectiveness, with 55% of leaders calling it just “somewhat effective.”
Conversely, relationship-based leadership development – like coaching and mentoring — was found to be more effective. 87% of leaders ranked coaching, in particular, as “very to extremely effective.”
When managers engage with coaching, their direct reports also learn new skills. For instance, 67% of direct reports say they are more likely to seek out opportunities to develop new skills after their manager received coaching. On top of that, 47% experienced improvements in their communication skills, while 41% improved their strategic skills, like decision-making and innovative thinking.
On an organizational level, coaching is shown to have far-reaching effects on business outcomes like employee engagement and retention. In fact, 40% of organizations that use coaching or mentoring report better retention of desired talent, compared to 24% of those that do not.
Back to You
Investing in skill development is critical for organizations to remain competitive, innovative, and adaptable. While traditional training is often used to teach skills, coaching enables leaders to put those skills into practice.
To learn more about coaching and its role in skill development, check out our report, Leveraging Coaching and Mentoring to Create More Effective Leaders.
