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Talent Development Leader

Tackle the Global Skills Crisis Head-On

The skills shortage may not be a crisis—but rather an opportunity.

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Tue Jan 21 2025

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Most companies, according to McKinsey & Company, report that they already have a skills gap or expect to have one during the next few years. Organizations simply can’t find and keep enough skilled talent to meet business needs. Rapid advances in technologies such as artificial intelligence and blockchain are outpacing capabilities. The pandemic disrupted labor markets and accelerated the need for new digital skills. Meanwhile, many traditional education systems lag behind, unable to keep up with industry demands.

According to Korn Ferry, World Economic Forum, and others, the biggest industry skill shortfalls will be in:

The problem amounts to a total shortfall of 85 million skilled workers by 2030, leaving millions of jobs vacant and trillions of dollars on the table. In fact, the skills shortage could spark more than $11.5 trillion in lost economic opportunities globally. It will have a direct impact on productivity, innovation, and growth. Companies are already feeling the pinch, with 45 percent of CEOs in a 2024 PwC study saying their company will not be viable in 10 years in its current state.

Imagine a world, however, where the skills shortage is not a daunting challenge but an opportunity to transform education, workforce development, and economic growth. Rather than examining the issue as a lack of people, consider it as a skills and work mismatch. There is no shortage of people. The problem stems from a lack of skills businesses need to complete work.

Which skills are critical?

Skills exist in three big buckets: technical and digital skills; human (or power) skills; and higher cognitive skills.

Within those categories are critical skills that will be a priority for everyone. I recommend the following skills as a focus—for both organizations and individuals—between now and the end of 2035.

Technical and digital skills. These help companies keep pace with technology.

  • Digital fluency (includes mobile and digital technology, AI fluency and prompt engineering, cybersecurity awareness, social media savvy, programming concepts, and basic coding)

  • Data and analytics

  • Business and financial acumen

Human (power) skills. Also known as social and emotional skills, these help individuals understand and relate to others.

  • Empathy

  • Resilience

  • Communication

  • Collaboration

  • Leadership

Higher-cognitive skills. These enable people to synthesize, evaluate, and apply information in complex situations.

  • Critical thinking

  • Creativity

  • Innovation

  • Problem solving

Take a strategic approach

To seize the moment, talent development professionals must develop a comprehensive strategy that prioritizes critical skills through a balance of upskilling, reskilling, and preskilling. Leverage strong partnerships across employers, education, and government to help organizations be clear on current and emerging needs, prepare students for the workforce, and enable employees to stay ahead of the curve.

In addition, encourage employees to spend 70 percent of their learning time building skills that help them stay current in an existing role or field (upskilling and reskilling). Note that specific companies or industries will typically determine skill priorities.

The final 30 percent of learning time should focus on preparing for the future. Individuals can set themselves apart by preskilling to build targeted technical, human, and higher cognitive skills. Don’t discount quick bursts of learning—people stoke their curiosity all the time. Motivate staff to pursue topics of interest, continuously learn, and improve.

Staying current

Upskilling is about enhancing existing skills and building new ones to stay current in an existing job or field.

In 2021, Amazon committed $1.2 billion to help 300,000 employees upgrade their skills as part of the Upskilling 2025 pledge. As a result, the technology company has successfully upskilled thousands of employees, helping them adapt to new digital tools and expectations.

As another example, when I was chief learning officer at BMO Financial Group, my team launched an upskilling program focused on digital transformation. The Level Up! digital skills program targeted 4,000 technology professionals to equip them to develop, manage, and evolve the tech stack that was critical for customer and business success. The program drove learning, hands-on practice, and meaningful credentials in AI, cloud computing, data analytics, Agile methodology, and IT operations. It wasn’t just about training; it was about creating a culture of continuous learning and adaptability.

A path to new opportunities

Reskilling involves acquiring entirely new skills to transition into different jobs or fields. The approach is especially important when certain roles become obsolete such as manufacturing workers who have transitioned to technology roles through targeted reskilling programs. As another example, Accenture has invested nearly $1 billion since 2021 to provide millions of hours of learning to reskill its workforce from basic skills to industry-specific content.

At BMO, headquartered in Canada, my team prioritized a range of reskilling programs. One such project was when we offered a virtual reskilling program for Indigenous talent. Twenty-two students from remote Canadian communities completed a 12-week cloud computing boot camp followed by a six-month internship, providing them with entry-level technology roles and practical digital skills.

On another occasion, BMO launched the Financial Crimes Unit Academy to build best-in-class skills in cybersecurity, fraud management, physical security, and global crisis management. FCU Academy included unique learning experiences such as immersive boot camps, hacking demonstrations, and gamified virtual escape rooms, which drew enthusiastic participation from employees and customers alike. The innovative program helped us address critical skills gaps while keeping teams engaged and motivated.

Preparing for the future

Preskilling focuses on building skills now that will be critical in the future.

Organizations of all sizes are investing to build the skills of tomorrow. For example, the National Growth Fund provided Quantum Delta NL with 615 million euros (approximately $634.4 million) in 2021 to implement a multiyear plan to scale and accelerate quantum technology. Actions focus on four pillars: skilled talent development, research and development, market creation, and the impact on society. The investment will create 30,000 high-tech jobs and generate between 5 billion and7 billion euros ($5.2 billion to $7.2 billion).

In April 2024, Microsoft committed to equipping 2.5 million people in member states of the Association of Southeast Asian Nations with AI skill-building opportunities by 2025.

At BMO, the L&D team developed a Leading Digital First program to equip leaders with the skills for digital strategies and transformation. We began by rolling out the initiative to the top 500 senior leaders, then expanded to more than 50,000 employees worldwide. The goals were to foster a common language and understanding around digital transformation as well as to align tangible skills and credentials to the organization’s digital transformation strategy and ambitions.

Putting it all together

As talent and learning leaders, we have a unique opportunity to advocate for and engage in skills development initiatives within our organizations and across schools and communities.

The global skills shortage is a pressing challenge. However, by leveraging our influence and expertise, we can turn the crisis into our greatest opportunity. By taking a more integrated, strategic approach to upskilling, reskilling, and preskilling, the TD industry can fill the gaps, drive innovation, spur economic growth, and create a more equitable workforce.

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