Transforming work: are you up for the challenge?

Even putting the current, chronic labour shortages to one side, CBI research has found that nine in ten people will need to gain new skills by 2030. And, contrary to fears that investment in training doesn’t pay off if employees then leave, three quarters of firms who do so achieve a positive ROI.  

“Firms need to believe in the value and importance of reskilling,” said CBI Director-General Tony Danker. “Most employers are doing it because it’s the cheapest and more effective way to gain new skills.” 

“You can’t get the shiny new skills off the shelf that you might want to – the numbers and requirements just don’t match,” said Leonardo’s Director of Skills and Capability Linda McVay. “You’re best off sorting out your own employee base,” she agreed. 

Hybrid working has brought a sea change in digital learning opportunities which also makes upskilling easier, said Catherine Foot, Director at Pheonix Group. Nevertheless, it puts a lot of focus on company culture, as workloads need to be managed to give employees the space to develop. “It needs the right kind of line management and support to make it work,” she added.    

We’re not just talking about flexible working patterns here (although the importance of offering that is here to stay). “There’s not so much a talent pool as a talent puddle at the moment,” said Director of Permanent Appointments at Hays, Gaelle Blake, so when you are going out to market for new talent, you need to be flexible in what you’re looking for. “What you may want is different to what you need,” she added.  

Focusing on transferable skills, or skills-based hiring, has other advantages – as discussed on the D&I webinar. It’s one very practical way of opening up your search to a more diverse range of candidates.

With the rise of remote working – and with more people willing to travel further for fewer days in the office under hybrid working arrangements – companies are losing their location as a selling point.  

What’s more, labour shortages have given rise to wage inflation that, for many firms, is simply not sustainable.  

One answer is to look at your company's complete benefits package – not just wages – with a particular focus on health and wellbeing. How can your organisation help people in their careers? How can you go out of your way to make them feel at home?  

It’s increasingly well understood that younger generations care about what their employer (or prospective employer) stands for in terms of sustainability and ED&I too. So are you walking the walk, not just talking the talk? 

While we’re on the topic of young people, it’s worth spending some time thinking about what they want out of work. They’re the workforce of the future and a key element of the long-term solution to ongoing skills shortages.  

This became the focus of a discussion about labour shortages, with a seeming disconnect between current recruitment challenges and the number of young people still out of work.  

The experience of the past 18 months means more students are asking about self-employment. There’s anecdotal evidence some are choosing careers because of remote working benefits – which risks widening gaps in the labour market.  

Yet other surveys suggest it’s younger employees that want to get back to the office to benefit from development opportunities.  

Although government needs to help forge closer connections between skills provision and skills requirements, businesses need to be more proactive in working with careers advisors in schools, colleges and universities. They are the only people that can really help young people understand what to expect from the world of work, while ensuring they don’t make wrong choices based on a lack of available information.  

Cross-sector and cross-industry collaboration also has a big part to play in tackling skills shortages – whether it’s better positioning a sector to attract talent and make young people want to learn the required skills, or in taking a hands-on approach to developing the training that will help fill the vacancies.  

“Competition is never far from the debate. But when you’re talking about basic skills, we’re better together than apart,” said Leonardo's McVay. Wanting to act in the best interest of the sector, not just the company, Leonardo’s skills initiative involves SMEs and other businesses in its supply chain.   

According to CBI research, 76% of firms expect the use of hybrid working to increase compared to working pre-pandemic, 40% expect full time remote working to increase, and 58% expect informal flexibility to increase in their organisation. But as many firms start stepping up their hybrid working arrangements, it’s another shift into the unknown.  

This means organisations need to work particularly hard to engage their people, balance their interests with those of the organisation, and prioritise communication.  

A key takeaway from the Transforming Work Week discussions was the importance of being open to making changes as new ways of working bed in. And, whether you’re trying to make the best of hybrid working, struggling to attract new talent, or planning what skills you need to grow – learning from what other firms are doing will give you the best chance of success.