Bridging the Skills Gap – Why Upskilling is the Biggest Challenge Facing Today’s Workforce

Sai Kumar Chandran

In today’s rapidly evolving world, skilling has emerged as a critical challenge for organisations across public and private sectors. The need for continuous upskilling and reskilling is driven by technological advancements, changing market demands and the evolving nature of work. Despite the increasing recognition of the importance of skilling, several challenges persist, making it difficult for organisations to effectively develop the workforce capabilities needed to stay competitive. What also complicates these skill issues are the range of problems faced by the junior, middle and senior levels.

Let’s look at the major triggers that are leading to the challenges of skilling across sectors, examining the unique hurdles faced by different levels of the workforce, and highlights the broader implications for businesses and economies.

Rapid Technological Advancements and the Skills Gap
One of the most significant challenges in skilling today is the rapid pace of technological change. Technologies such as artificial intelligence, automation, machine learning and big data are transforming industries, leading to a skills gap that is difficult to bridge. As new technologies emerge, the half-life of skills is shrinking, and skills acquired today can quickly become obsolete. This creates an urgent need for continuous learning and adaptation, but many organisations struggle to keep up.

For the workforce, this pace of change is daunting. Junior employees often lack foundational skills in emerging technologies, while mid-level professionals face the challenge of staying relevant in their roles. Senior leaders, on the other hand, are pressured to develop strategic capabilities to navigate digital transformations. Across all levels, there is a struggle to identify which skills are most crucial for future success and traditional education and training systems are often too slow to respond to these needs.

Mismatch Between Education and Industry Needs
A persistent challenge in skilling is the disconnect between what educational institutions provide and what industries require. Graduates often enter the workforce lacking the practical skills needed to perform effectively, leading to a growing concern among employers about the readiness of new hires. This mismatch creates additional pressure on organisations to invest in training and development, as they cannot rely solely on the education system to prepare workers adequately.

The issue is not just limited to technical skills; soft skills such as critical thinking, problem-solving, communication and collaboration are increasingly valued, yet often underdeveloped in traditional education. As a result, organisations are compelled to address these gaps internally, which can be resource-intensive and challenging, particularly in sectors facing tight budgets or regulatory constraints.

Evolving Nature of Work and Job Roles
The nature of work itself is changing, driven by trends such as remote work, the gig economy and the increasing use of digital platforms. Job roles are becoming more fluid, with boundaries between functions blurring, requiring employees to possess a broader range of skills. This shift makes traditional role-based training approaches less effective, as employees need to be prepared for dynamic work environments where they may be required to perform multiple roles.

For junior employees, this means acquiring a diverse skill set early in their careers, often without clear guidance on what skills will be most valuable. Mid-level employees are expected to adapt quickly, taking on new responsibilities and learning on the job, while senior leaders must navigate the complexities of leading teams in hybrid or fully remote settings. The evolving nature of work demands agility, but many organisations lack the infrastructure and culture to support continuous learning.

Resistance to Change & Cultural Barriers
Resistance to change is a significant barrier to effective skilling. Many organisations, (and surprisingly not just in the public sector) are characterised by deeply entrenched cultures and bureaucratic processes that hinder the adoption of new skills. Employees may be resistant to upskilling due to fear of failure, discomfort with change or a lack of perceived relevance of the training offered.

For mid-level managers, resistance is often compounded by organisational silos that inhibit cross-functional learning and collaboration. Senior leaders, who are expected to champion change, may also struggle to shift organisational mindsets, particularly when existing processes and structures are seen as safe or successful. This resistance can stifle innovation and slow down the pace at which new skills are adopted.

Financial Constraints and Resource Limitations
Budget constraints are a universal challenge in skilling, particularly for small businesses, non-profits and public sector organisations. Training programmes, especially those that are high-quality and relevant, can be costly, and the return on investment is not always immediately visible. Many organisations face the dilemma of balancing the need to invest in skilling with other pressing financial priorities.

For junior employees, limited training budgets often mean access to only basic or generic skills development, which may not be sufficient for career progression. Mid-level and senior employees may find it difficult to access advanced training opportunities that are critical for leadership development. This financial constraint can result in a workforce that is inadequately prepared to meet current and future challenges, impacting organisational performance.

Lack of Access to Quality Training and Learning Resources
Access to quality training resources is another critical challenge. While digital learning platforms have made skilling more accessible, the quality and relevance of these resources vary widely. Many employees find it difficult to navigate the limited or generic array of available training options, leading to inconsistent learning outcomes. Additionally, not all workers have the digital literacy or access needed to take full advantage of online learning in sectors where field and blue collared workers are present in larger numbers.

For public sector employees, access to updated training can be limited by bureaucratic red tape and outdated training methodologies. In the private sector, the emphasis on on-the-job learning means that structured training often takes a back seat, leaving employees to learn through trial and error, which is not always effective. The lack of standardised, high-quality training pathways creates disparities in skill levels and limits the overall impact of skilling initiatives.

Measurement and Evaluation Challenges
Finally, measuring the effectiveness of skilling initiatives remains a complex challenge. Organisations often struggle to quantify the impact of training on performance, making it difficult to justify continued investment in skilling. Traditional metrics such as completion rates or test scores do not capture the real-world application of skills, and there is a lack of robust frameworks for assessing the long-term impact of skilling on employee growth and organisational outcomes.

Without clear measurement, it becomes challenging to tailor skilling programmes to meet the specific needs of different levels within the organisation. This can lead to a one-size-fits-all approach that fails to address the unique challenges faced by junior, mid and senior employees, ultimately limiting the effectiveness of skilling efforts.

Intent, and even support, but no quality time for self
This is the reality of life, today. For the average working professional, between demanding work, punishing commute and essential family requirements, the individual may be left with hardly any quality time. This is not just a daily story, but weekly and even over a month for some of us. This is where most people tend to focus on learning on the fly and tricks of the trade. This approach does help for a bit, but is really not the solution; hence doesn’t yield lasting and quality impact.

Some people do claim that they are able to make time to read and do courses, but more often than not, there is a catch in the story of why the person has that kind of time in today’s life. Not everyone has that luxury. And if there was that little time and luxury – there are competing personal needs: health, learning, social time and maybe even unstructured leisure time.

Overcoming these challenges requires a strategic, tailored approach that considers the unique needs of employees at different levels, addresses resistance to change, and leverages innovative learning solutions. As organisations navigate these challenges, a commitment to continuous learning and adaptability will be crucial in building a skilled workforce that can thrive in today’s dynamic world.

Overall, there are several initiatives which require budgets and sustained efforts. Everything from a Learning Academy, to tie-ups with institutions and consultants, to e-learning, to simulations, the world offers several avenues as possible solutions.

However, organisations can undertake several initiatives to enhance skilling and achieve quality learning outcomes without significant financial investment. These initiatives leverage existing resources, foster internal collaboration and emphasise learning through experience and community. Here are some impactful approaches:

1. Peer-to-Peer Learning Networks

  • Create informal learning groups or networks where employees can share knowledge, discuss best practices and solve problems together.
  • How to Implement: Encourage teams to hold regular knowledge-sharing sessions, lunch-and-learns, or ‘teach-back’ sessions where employees present on topics they are proficient in.
  • Learning Outcome: Builds a culture of continuous learning and reinforces skills through teaching, which deepens understanding.

2. Internal Mentoring Programmes

  • Establish mentoring relationships within the organisation where experienced employees guide less experienced ones in skill development.
  • How to Implement: Match mentors and mentees based on areas of expertise and learning goals, setting up regular meetings to track progress.
  • Learning Outcome: Provides personalised learning support and accelerates development through knowledge transfer and feedback. Such programmes also deepen the expertise of the mentors.

3. Cross-Functional Teams and Job Rotation

  • Enable employees to work in cross-functional teams or rotate roles within the organisation to gain broader skills and perspectives.
  • How to Implement: Create short-term cross-departmental projects or job shadowing opportunities where employees can learn about other areas of the business.
  • Learning Outcome: Fosters adaptability, broadens skill sets and enhances understanding of the organisation’s overall operations.

4. Knowledge Repositories and Resource Libraries

  • Build and maintain a digital repository of resources, such as recorded webinars, articles, guides and best practices that employees can access for self-paced learning.
  • How to Implement: Use existing company intranets or shared drives to curate and regularly update learning materials accessible to all employees.
  • Learning Outcome: Empowers employees to take control of their learning journey by accessing relevant resources as needed.

5. Feedback-Driven Development

  • Incorporate structured feedback loops into everyday work, allowing employees to learn from their successes and mistakes in real time.
  • How to Implement: Conduct regular one-on-one feedback sessions, 360-degree reviews, and after-action reviews to reflect on performance and identify learning opportunities.
  • Learning Outcome: Continuous feedback helps employees refine their skills quickly and understand areas for improvement.

6. Internal Hackathons or Innovation Challenges

  • Host internal hackathons or challenges where employees work in teams to solve real business problems or develop new ideas within a set timeframe.
  • How to Implement: Identify a specific challenge or goal, form diverse teams and set a timeline for presenting solutions or prototypes.
  • Learning Outcome: Encourages creativity, problem-solving, collaboration and quick learning in a competitive yet fun environment.

7. Self-Directed Learning Time

  • Allocate dedicated time for employees to learn new skills, explore new tools, or work on side projects that contribute to their development.
  • How to Implement: Designate a few hours per month or week for self-directed learning and encourage employees to pursue topics relevant to their role or interests.
  • Learning Outcome: Promotes autonomy in learning and allows employees to pursue skills that are most relevant to their personal and professional growth.

8. Internal Webinars and Expert Talks

  • Organise internal webinars or invite guest speakers from within the organization to share insights on specific skills, industry trends or successful projects.
  • How to Implement: Identify knowledgeable employees or teams and schedule short, interactive sessions that others can join virtually.
  • Learning Outcome: Provides exposure to diverse perspectives and specialised knowledge that can be immediately applicable.

9. Recognition for Learning and Knowledge Sharing

  • Recognise and reward employees who actively participate in learning activities, share knowledge or apply new skills in their roles.
  • How to Implement: Implement recognition programmes such as ‘Learner of the Month’, shout-outs in meetings, or feature stories in internal communications.
  • Learning Outcome: Encourages a culture where learning and development are valued and celebrated, motivating more employees to engage in upskilling.

These initiatives focus on creating a learning culture that leverages internal resources, expertise and peer networks. They not only enhance skills without requiring significant financial investment but also build a stronger, more connected workforce that learns and grows together, as an organisation.

Like conducting business, monitoring revenue and profitability and keeping customers satisfied is a priority, skill development needs to be made a broader priority than where it is today. Possibly, what is also required is industry wide recognition of this challenge and even regulations as required. Sub-optimal skills are not only a concern for the viability and profitability of a business, but also a big threat to the individuals’ well-being. The positivity in an organisation’s culture and engagement are also deeply impacted when people are not able to perform as well as they should.

It is time senior leaders took ownership of this issue and stopped leaving it to employees to do what they can to stay relevant and productive. Like machinery requires maintenance, employees require skilling to stay at peek performance. If not this, then how? An important question for every business leader to ask! And if this is important, then how are you going to stay on top of this game?

Sai Kumar Chandran is the founder of OrbitShift. He is a coaching and consulting practitioner and an entrepreneur at heart. He can be reached at saikumarchandran@orbitshift.com.

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