Labor Shortages and Skills Gaps

Executive Summary

Back in 2015, we were already noting in our blog posts that there was a widening “skills gap,” and that it was making business owners and executives nervous. Today, that skills gap has only gotten wider and deeper. This has created a set of unique challenges for organizations, and particularly for HR, as they struggle to fill positions and reorganize in the face of a changing work landscape.

Fortunately, there is a solution so simple and obvious we almost hesitated to write a paper on it: Provide more and better training for existing employees. The organization that does that will outlast the competition in the face of labor shortages, skills gaps, and innovations in technology like automation and AI.

How exactly does this work?

What has been less obvious is how exactly this is all supposed to work. What kinds of training are needed, and how do they fit into an overall strategy for attracting and retaining talent? Or building a change-proof succession plan? What will an increasingly technology-driven future demand in terms of new employee skills? For their part, what will employees themselves want?

Answers to these questions are not as simple nor well known... but we can provide insights into to them for you.