Skills strategies for a sustainable world of work: A guide for Chief Human Resources Officers - The Future of ...
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Contents Foreword Part 1 Part 2 Context - The rapidly Skills development evolving world of - Key to a sustainable work world of work Part 3 Appendix References The skills journey in a Case studies changing world of work Skills strategies for a sustainable world of work 2
Foreword Work is the engine at the center of our increasingly complex and the effectiveness of It shares best practices and aims to provide economies and skills are its most important business-as-usual workforce strategies is business decision makers – in particular Chief ingredient. Work and skills to fuel it, lie at the progressively being challenged by Human Resources Officers (CHROs) – with heart of the World Business Council for these new realities. guidance and inspiration to strengthen their Sustainable Development’s Vision 2050 where This brings Human Resources (HR) executives companies by empowering people through over 9 billion people live well, within the limits of into the ‘eye of the storm’, reinforcing their relevant skills and increasing decent the planet, and is essential for the achievement strategic role in ensuring business continuity, employment opportunities. of the Sustainable Development Goals (SDGs). resilience and growth while contributing to a By doing so, they can contribute to “inclusive and Without the right skills, workers, in particular future where both business and society don’t just equitable quality education and promote lifelong those from disadvantaged groups (women, react and adapt to disruption, but thrive. A future learning opportunities” as well as “promoting full young, ethnic minorities, low-skilled workers), will with inclusive workforces that are secure, and productive employment and decent work for find it more and more difficult to find the work motivated, skilled and prepared for any challenge all” as outlined respectively in SDG Goals 4 and 8. they need to live well. that comes next. And where people are This is an immense opportunity for business to New technologies, socio-economic empowered and prosper from equal access to reinforce social cohesion, reduce inequalities developments and critical events like COVID-19, new opportunities. and have a significant positive impact on society. are placing the world of work in a state of Based on real-life experiences from a range constant flux, creating opportunities but also of organizations, this guide brings to life the Nazrene Mannie exacerbating inequalities. importance of designing and implementing Executive Director As we begin to recover from the pandemic, many comprehensive skills development strategies for GAN Global businesses will lack the relevant skills needed to creating future-proof businesses and a more Filippo Veglio be successful in the future. Even before COVID- sustainable future of work. It helps business Managing Director People & Society 19, business leaders were concerned about leaders better understand how a strong skills and Senior Management Team, finding, keeping, and developing the talent development strategy creates business value WBCSD required for the modern world. In this context, while it simultaneously generates positive value recruiting people with the right skills for current for people and society. and future business needs has become Skills strategies for a sustainable world of work 3
About this guide This report is the product of discussions from Drawing upon these rich discussions, WBCSD and Part 3 explores in detail five crucial steps to WBCSD’s Future of Work project – a forum that GAN are pleased to present this report that aims develop a forward-looking skills strategy. brings together businesses to shape a sustainable to inform and inspire CHROs and HR decision The guide is further complemented by 16 case world of work. Our Future of Work project makers that are setting out upon the skills studies from organizations, each covering the envisions a people-centered world of work where development journey. It presents a wide range of business need for action, the target audience, key people prosper personally, professionally and as effective and appropriate skills strategies and activities and how impact was measured. active members of their community. It promotes pipelines, leveraging interviews with senior HR an inclusive workforce, where people feel safe, professionals and showcasing solutions from motivated, empowered, and prepared for 16 leading organizations. Questions this guide aims to address: whatever challenge they are facing or will have to Overview of the Guide: • Why is corporate skills development face next. Part 1 provides the big-picture context describing important? What are the benefits for Effective skills development plays a fundamental business, for its workers and for society? the main factors driving changes in the world of role in achieving this vision. With this is mind work. • Which types of corporate skills WBCSD’s Future of Work project has established a dedicated working group for businesses to share Part 2 presents the skills mismatch as a key development strategies and programs experiences, distil best practices, develop challenge for business and society and highlights exist? collaborative solutions and address key issues the risks of not addressing it. It also introduces • How can you assess which type of skills around skills development. In this regard WBCSD’s skills development as a key to a sustainable world development program best corresponds members worked closely with the Global of work. It then outlines specific actions CHROs to your company’s organizational needs? Apprenticeship Network (GAN Global) a leading can take to kick-start their companies’ skills organization in the promotion of work-based strategies for the new world of work based on learning to empower people and businesses. real-life business experiences. Skills strategies for a sustainable world of work 4
Acknowledgements and disclaimer This guide is the result of collaborative efforts by the WBCSD secretariat and executives from member companies and the Global Apprenticeship Network (GAN). A wide range of members reviewed drafts, thereby ensuring that the document broadly represents the perspective of the WBCSD membership. This does not mean, however, that every member company agrees with every word. We would like to thank PwC UK for coordinating this effort and enabling the development of this guide. On this page, we have listed the project team and the organizations that contributed to the guide. They have generously given their time, contributed their professional perspectives and skillfully pulled together this report. To all contributors – named as well as unnamed – we express our sincere thanks. GAN Global Nazrene Mannie, Executive Director Lucy Kitson, Head of Operations PwC UK Juliet Stuttard, Director, People & Organization Monique Malcolm-Hay, Program Manager, People & Organization Lucy Hall, Associate, People & Organization WBCSD James Gomme, Director, People & Society Davide Fiedler, Manager, People & Society Natalie Zryd, Associate, People & Society Skills strategies for a sustainable world of work 5
Context - The rapidly evolving world of work Part 1 provides the big-picture context, describing the main factors impacting the world of work. It briefly sketches how these factors impact different demographic groups and then dives deeper into challenges related to young people as the future workforce generations. Skills strategies for a sustainable world of work 6
Factors impacting the world of work Work is facing complex disruption at the hand of three inter-connected forces: 30% of jobs are at high Global socio-economic Shifting expectations Rapid technology evolution risk of trends of workers displacement by automation by 2030* 9 85m roles will be in decline by 2025 8 97m New technologies are being Climate change, rising Income security, transparency, developed and adopted at an inequality, shifting inclusion and equity are now unprecedented pace. A range of demographics, migration fundamental expectations of new roles will technologies, including robotics, pressures as well as COVID-19 workers, while the ability for emerge by 20258 artificial intelligence, video have all had an impact on the companies to provide meaning, conferencing and online global labor market and look set flexibility and opportunity are collaboration applications, the to continue to do so throughout becoming critical differentiators Internet of Things, platform the decade ahead.11 for attracting and retaining technologies and blockchain are talent.11 deeply changing tasks and work * percentage of job activities that will be transformed patterns and are challenging how or disappear within the next 15 years companies function.11 Skills strategies for a sustainable world of work 7
Impacts on different demographic groups Disruptions to the world of work will affect specific groups of people at different stages in their careers differently. COVID-19 has posed additional challenges, especially for younger generations, raising concerns that the workforce of the future will not have the skills required to find employment or may see their employment opportunities curtailed as the global economy falls into recession. Early years and Secondary, college and Workers close to Early and mid-career workers school children university students retirement age UNICEF asserts that for every USD$1 Education plays a critical role in Early and mid-career workers face Workers close to retirement age spent on early childhood preparing youth and young adults a series of challenges. COVID-19 may not have adequate savings or development, the return on for the world of work. However, a has also impacted the prospects of sufficiently robust pensions and investment can be as high as 2016 report by the International a large number of early career may therefore need to continue USD $13, boosting prosperity, Commission on Financing Global workers, especially in sectors hit working beyond their planned time inclusive growth and equality. 14 Education Opportunity estimated hard by the pandemic.5 Meanwhile, of retirement. Additionally, many However, the development of millions that 30% of young adults would not mid-career workers are facing older, long established employees of young people around the world graduate from secondary school financial pressures and job are discovering their jobs and skills remains susceptible to disruption. with the skills they need to hold insecurity as the economy are becoming obsolete, making it One in three young people – 463 most jobs. struggles, while also feeling ill- difficult for them to maintain their million – could not access remote prepared to adapt to the speed of employment and income.5 Due to the economic recession learning when schools shut down due technological change.7 driven by COVID-19, those leaving to COVID-19, highlighting the need college during the pandemic now for enhanced investment in robust see their usual job prospects in and resilient development programs.5 doubt.7 Skills strategies for a sustainable world of work 8
Impacts on the workforce of the future Hundreds of millions of young people around the expect to complete their studies at all. The same world are coming of age and finding themselves survey found one in six youth surveyed have 5 7 unemployed and unemployable. Organizations stopped working since the onset of the pandemic. cannot ignore the impact this will have on their According to the ILO, nearly 77% of employed future workforce and on society more broadly. youth around the world were in the informal The International Labour Organization’s (ILO) Global economy, making them particularly vulnerable 15 Employment Trends for Youth 2020 report stated to business closures or shifts to online work. that out of 1.3 billion young people (aged 15-24) in Neglecting these challenges can result in young the world, one fifth was not in employment, people becoming disenfranchised, feeling education or training.12 disillusioned about their prospects on the labor The COVID-19 pandemic has exposed structural market, and can contribute to social unrest, creating weaknesses in local, national, and international a more volatile operating environment for business. institutions and economies, exacerbated inequalities, and worsened the situation for young people. When the world moved online, vulnerable By equipping young people with relevant skills, businesses can support their access to 1 in 3 employment opportunities and enable them to young people communities ‒ including youth who live without thrive personally, professionally and as active could not consistent, reliable access to the internet or members of society. access remote technology, or who lack the skills and acumen to navigate a digital world ‒ were hit particularly hard, Skills development is equally essential to other learning when and they risk long-term or permanent social demographic groups. Hence, the following schools shut disenfranchisement as more facets of everyday life chapters of this guide support HR executives in down5 go or stay online.5 strengthening their skills development strategies and supporting current and future workers across 50% of young people surveyed in an ILO survey in all demographics to prepare for the new world 2020 reported that they were likely to complete of work. their studies late, and 10% stated that they did not Skills strategies for a sustainable world of work 9
Skills development - Key to a sustainable world of work Building on the context analysis in the previous chapter, part 2 presents the skills mismatch as a key challenge for business and society and highlights the risks of not addressing it. Skills development is then emphasized as key to a sustainable world of work. Addressing CHROs as the top executive responsible for driving workforce and skills strategies within an organization, part 2 closes by outlining specific actions CHROs can take to kick-start their companies’ skills strategies for the new world of work. Skills strategies for a sustainable world of work 10
Understanding the skills mismatch In a series of surveys, PwC asked CEOs about their perspectives and to share challenges In recent years, the labor market has faced The rapid move to a predominantly virtual world their companies were facing due to skills mounting problems related to the supply and occasioned by the COVID-19 pandemic has mismatches: demand of skills: too many people are finding that further exposed gaps in the capabilities of 4 they do not have the skills to take up the jobs companies and their people. Companies have available today, much less those that will be needed in a highly digitalized world. Meanwhile, had to ask workers to quickly acquire and master digital skills, as well as a range of auxiliary skills 52% of CEOs said that a many companies are also struggling to hire the such as collaboration, creative problem-solving 2 lack of skills were talent they require. and openness to new ideas. pushing up their This fundamental difference between the skills In a time of extreme uncertainty and rapid digital people costs faster required by employers and the skills possessed by an organization's current or prospective adoption, designing and implementing a strategy to address the skills mismatch and ensure that than expected13 55% workforce is often referred to as the skills employees have the right skills required to of CEOs said skills mismatch. perform well and thrive into the future, is more gaps meant they important yet also more challenging than ever were failing to PwC's recent 'Upskilling for Shared Prosperity' before. innovate13 report in collaboration with the World Economic Forum highlights that half of all employees will need to develop new skills by 2025 to remain 1 72% employable. of CEOs are worried about the availability of key skills10 Skills strategies for a sustainable world of work 11
Risks of Inaction Not taking any action to address skills mismatches and implement new skill strategies bears significant risks for business and society. Unsustainable workforce Inability to drive business A decline in diversity and Widening skills gaps development priorities inclusion Organizations which do not take Companies that do not take action If employees do not have the Minority groups face unequal access action to implement new skills to proactively develop fit-for skillset needed to drive business to education and in workplace strategies risk allowing their purpose upskilling programs risk priorities, then this will prevent a training. Companies not ensuring employees to be left behind in the having to fall back on unsustainable company's ability to compete in the inclusive skills development miss out new world of work. short-term solutions that will drive market. on the value that talent from diverse up costs and deliver significantly backgrounds and perspectives The longer companies leave skills reduced long-term benefits. brings in developing new products, gaps unaddressed, the harder it will Furthermore, companies without services and business models. be to upskill staff and close the gap. skills development opportunities At the same time, they contribute to run risk of losing attractiveness to perpetuating social inequalities, current and future talent. breeding discontent, eroding social cohesion and ultimately contributing to a more volatile political and business environment. Skills strategies for a sustainable world of work 12
Buy, borrow, or build approach There are typically three overarching approaches to drive the creation of new skills within an Buy Borrow Build Hiring resource directly Sourcing resource from Investing in building the organization. They are known as – ‘buy, borrow or build’. from outside the outside for a short period skills and competences organization through of time (including part- required for a particular Building the skills and competences recruitment (permanent) time, freelance, contract, role required is the most sustainable and temporary workers) choice. It makes good use of company or secondments resources as employees are retained and developed, boosting employee morale and sense of belonging to the organization. By investing in building + Enables organizations to + Fulfils short-term needs in + Reduces competition over the skills and competences, respond quickly to a new skills specialized skills sets specialized professionals as companies directly tackle the skills need + Avoids long-term costs they are developed in-house mismatch, as education and training + Introduces new experiences - Can lead to a growing skills + Meets continuously evolving curricula are informed by and geared and ideas to the organization deficit skills requirements towards responding to a concrete - Can lead to a growing skills + Retains talent and boosts skills demand. - Can negatively impact employee deficit and contractor engagement employee morale - Expensive to hire new - Requires investment employees - Can require time before yielding results Skills strategies for a sustainable world of work 13
Skills development: key to a sustainable world of work Choosing the ‘build’ approach described earlier Benefits to business What is sustainable skills development means an organization embarks on developing A key business benefit of sustainable skills skills for their workers and for future talent, Sustainable skills development can be described development is that it empowers individuals to thereby creating positive value for society and as the process of building the necessary skills for grow and contribute to the success of the strengthening their business. an organization in a way that enables the company by helping them to transform their workforce to constantly adapt to the shifting Benefits to society skillset as the company and its demand for skills nature of work over a long period of time. Upskilling programs and continuous learning help transforms. For the purposes of this guide, upskilling is society more broadly by reducing the number of In 2020, 93% of CEOs who had introduced defined as an organization’s clear intent to people that struggle to find work due to lack of upskilling programs said these programs develop the employability and capabilities of its relevant skills. Increasing employability of people increased productivity, helped attract and retain employees’ or potential future talent, and to and enabling them to access opportunities can talent, and helped deliver a resilient workforce. advance and progress their technical, soft and contribute significantly to the livelihoods and However, only 18% of CEOs surveyed stated they digital skills. wellbeing of people. had invested in upskilling; the opportunity for those This is particularly important considering who haven’t yet made the investment is 93% stakeholders increasingly expect companies to put significant.4 people and society at the heart of their business. Of course, ‘upskilling’ can mean different things in Those watching are not simply shareholders; the different territories or industries. For sustainable new corporate stakeholder includes consumers, skills development to be as effective as possible of CEOs who influencers, policymakers, and more.3 over the long term, businesses need to engage introduced upskilling with other public and private organizations programs said these including education providers, policymakers and programs increased other businesses – in their own industry as well in productivity4 those with adjacent skills needs. Among others, this engagement can facilitate defining skills demands more clearly and at a relevant scale, pooling resources and developing fit-for-purpose programs. Skills strategies for a sustainable world of work 14
Action points for CHROs There are a number of actions you, as CHROs, can take to get started on developing your impactful skills strategies for the new world of work. 1 Think long-term about your skills development strategies 2 Analyze your company’s situation and choose the best suited solution(s) 3 Empower and engage your employee base The world of work will continue to adapt and Organizations have different needs and therefore Empower your employees to own and change at a much faster pace going forward, an approach taken by one employer, business unit continuously drive their learning. Utilize new therefore building an agile workforce and a culture or country office may not be suitable for another. technologies and tools such as VR to engage your of lifelong learning will be crucial. Think long-term It's important to analyze your company's needs in workforce and supercharge their learning. about your skills development strategies to a specific context and use this to determine the Effectively empowering and engaging your enable your organization to be proactive rather best course of action for the business. employees can in turn help boost retention in your than reactive to future changes in the market. company. 4 Build partnerships and collaborate 5 Develop programs that promote diversity, inclusion, and access Work with leading players to support the Proactively design programs which are inclusive implementation of your strategy. Partnerships and can be accessed by everyone. Ensure that and collaboration are essential to align supply participants include a mixture of employees, e.g. and demand of skills, ensuring that education different genders, races, ages, religions, sexual and training respond to real needs. This also orientations and locations. enable stakeholders to develop systemic solutions to skills mismatches. Skills strategies for a sustainable world of work 15
How does a skills strategy fit into the wider workforce strategy? An organization’s skills strategy is a key part of its overall workforce strategy. The diagram below illustrates the key components of a workforce strategy including how upskilling fits into the wider strategy. Workforce Strategy & Transformation How do I align workforce capabilities to achieve External Factors the business strategy? What is the business How do I know my Social workforce strategy going to look like in the future? is effective? Technology Physical + Upskilling Digital Workplace Demographic How do I solve skills How do I optimize Action Business Organizational Measurement gaps and mismatches Planning & Strategy Capabilities worker performance & Monitoring Tax / Legal / and prepare for the Roadmap through physical and Regulatory future? virtual working? Government support How will we deliver on for skills building What is the impact workforce plan, work of business strategy HR Transformation environment, and talent Global crisis on organizational strategy? capabilities and How do I get strategic business value from skills required? the HR function? Skills strategies for a sustainable world of work 16
The skills journey in a changing world of work This chapter explores five crucial steps to develop a forward-looking skills strategy. For each step you will find a description, key questions to consider and short case studies from different organizational realities, bringing these steps to life. Skills strategies for a sustainable world of work 17
The skills strategy journey in a changing world of work These are the five steps Step 1 Step 2 Step 3 Step 4 Step 5 organizations typically take to develop their skills strategy, with approaches adapting to Assessing the Laying the Defining and Developing and Measuring the the specific context of an business need cultural sending the new implementing an success of an organization. foundation demand signals upskilling program upskilling program Clearly identify the key Evaluate and adjust Effectively Ensure the initiative is Assess the success in business priorities and policies, processes, communicate the developed and terms of upskilling how skills and incentives to company’s skills implemented in the people and delivering development feeds reinforce and demand to relevant most efficient way. on the initiative's into them. encourage a culture stakeholders. intended objectives. that supports the organization’s upskilling efforts. Skills strategies for a sustainable world of work 18
Step 1: Assessing the business need Clearly identify the key business priorities and how skills development feeds into them. Overview Key questions to consider Many organizations focus on upskilling that Before companies can articulate how the skills of • What are key business objectives and delivers business strategy. This is carried out by their people need to change, they must know the priorities? aligning a skills plan with the wider business and results they expect employees to deliver. • What skills currently exist within the business? people strategy, and aiming to support learning While there may be many skills strategies and How does this compare to skills that will be and development across the organization in a way programs a company wishes to deliver, it can be needed to achieve the business objectives? that drives key business priorities. beneficial to focus on one or two. With that clarity • Does the business need to fill the current skills To ensure both, business and upskilling strategies and focus established, businesses can drive gap? are aligned, organizations can conduct a skills workforce transformation in key business areas.6 audit to identify the most essential capabilities • When will new skills be required to support the needed by their people to achieve the business new roles? In 1-3 years, 3-5 years or later? strategy. Skills strategies for a sustainable world of work 19
Selecting a stage in the learning journey Once a skills audit has been conducted, organizations will be tasked with deciding which part of the learning journey to target their upskilling efforts. When it comes to upskilling, companies need to prioritize who they will start with and where they can deliver the most business value. The below diagram conveys the various learning journey stages which can be targeted and includes links to relevant case studies. See Espace Entreprise case study Early career – apprentices See NCS case study See C.P. case study School Management Mid-career – incl. return to Early years work and career shifters Leadership See PwC case study See Zurich Insurance See KPMG case study University Early career – graduates case study See iPeople & See Nestlé case study Firmenich case study Skills strategies for a sustainable world of work 20
Real-life examples bringing to life Step 1. Facing rapid tech developments, The automotive industry is facing PwC recognized huge societal changes shifting worker expectations and profound technology-driven taking place, meaning that the skills embarking on a new growth strategy, disruptions, most prominently electrification of they had within the organization were OCP Group identified gaps between its vehicles, connected and autonomous not necessarily the skills the firm needed for current skills set and those needed to vehicles and Mobility-as-a-Service. This the future. Clients expected PwC to continue remain competitive in the market. scenario presented opportunities for Italian delivering value and the firm’s employees saw Through strategic workforce planning tire-producer Pirelli in terms of product the need to have new skills to remain relevant (SWP), OCP Group mapped roles based on innovation and development of new to clients. Striving to become a digital business the impact they would face from these applications, while reducing the time-to-market PwC recognized that upskilling employees was developments and identified Upskilling & of new products. To stay ahead in this new not only going to drive business benefits to Reskilling as the most appropriate strategy scenario, Pirelli has been investing in digital clients, but it was also going to drive a much to respond to the Group’s business needs. tools and focusing on developing new skills better employee experience. They also knew and capabilities that will enable Pirelli to that they needed their teams across the world develop more innovative and sustainable to be more comfortable with emerging products in the most agile way. technology, especially considering that the pace of technology wasn’t slowing down. That required PwC to start a journey of lifelong learning. Click here for a more detailed case study >> Click here for a more detailed case study >> Click here for a more detailed case study >> Skills strategies for a sustainable world of work 21
Step 2: Laying the cultural foundation Evaluate and adjust policies, processes, and incentives to reinforce and encourage a culture that supports the organization’s upskilling efforts. Overview Key questions to consider Upskilling efforts can benefit significantly from a Vice versa, it is evident that upskilling can have • What policies need to be put in place to corporate culture that encourages and rewards a lasting positive impact on corporate culture. encourage learning and development? continuous learning. In order to lay this new In 2020, in a survey conducted with more than • Can early enthusiasts be deployed to spark cultural foundation centered on upskilling, C-suite 2,000 CEOs, of those who said their companies interest and emotional impact? executives need to clarify how much of a had made significant progress in upskilling, 60% commitment they are making by discussing the reported that it had strengthened their corporate • Has a consistent message been developed investment in terms of money and senior culture, compared with 22% among those who to reinforce the company's commitment to management time. They must be visible role said their companies had made little progress on upskilling? models of a learning culture in building their own upskilling. 4 skills and knowledge. Having common language • Are company leaders sharing their own skills built around a consistent message on the firm's journeys? upskilling approach and plans can also help facilitate a learning environment and help employees internalize the message and make it part of their ‘self-guide’. Skills strategies for a sustainable world of work 22
2 3 Real-life examples bringing to life Step 2. Upskilling is vital to National Citizens To achieve its business priorities Service (NCS), a UK government Moroccan phosphate company funded youth program which bases OCP Group fosters a culture of continuous, its organizational culture on employees being lifelong learning. Having identified ‘Upskilling eager to share and gain knowledge. & Reskilling’ as the most appropriate strategy to achieve its business strategy and growth, Continuously enabling employees to support OCP promotes the ability to continuously the organization’s mission, NCS provides its learn and develop as the most important skill staff with ample upskilling opportunities and for the future among its talent, and links it to access to great learning pathways through career progress. formal training, internal knowledge sharing and strategic partnerships with like-minded organizations. This mix of a good culture combined with access to skills development and career growth opportunities has resulted in low attrition, highly positive employee experiences and strong talent attraction. Click here for a more detailed case study >> Click here for a more detailed case study >> Skills strategies for a sustainable world of work 23
Step 3: Defining and sending new demand signals Between the moment of knowing which skills are needed in a business and developing talent, it is critical to effectively communicate the company’s skills demand to relevant stakeholders. Overview Key questions to consider A ‘demand signal’ in relation to skills can be seen Key audiences of a new demand signal within the Defining the demand signal: as a message issued from a business to their organization include a company's own workforce • What new and different skills are required? workforce or the talent market which helps clarify such as at-risk or underqualified workers, but also the demand for particular skills. Demand signaling executives and team managers who can relay the • How can the skills requirement be articulated is an important consideration because often information and ensure needed skills are in a clear way? people may have market-relevant skills but may developed. Outside the organization the demand lack awareness or knowledge about the skills that signal can be targeted at business leaders from Sending the demand signal: employers are looking for. other organizations, career advisors, educators or • Who are the key audiences to take into individuals who are still at school or university or consideration when sending a skills demand Organizations will first need to define the new looking for work. signal? demand signal and then assess the best way of sending it. Defining a new demand starts with Sending a demand signal can also be a • What are the key messages to the having a clear and consistent way of describing complementary way of addressing the skills stakeholders involved? roles and skills across the talent marketplace. mismatch beyond developing upskilling programs. It helps businesses to clearly define • Which channels, mechanisms or tools can you and communicate what they are looking for and in use to ensure an effective communication of turn helps potential future recruits develop in the your skills demand? right direction with their career paths. Skills strategies for a sustainable world of work 24
When planning to send a demand signal, a number of factors must be considered, such as which are the channels and mechanisms best suited to reach target audiences. The below (non-exhaustive) diagram illustrates channels that could be used. Global business center Channels Business leaders Career advisors Educators Key audiences (internal and external) (external) (external) Main target groups Unemployed graduates, at-risk employees, underqualified, school age children Skills strategies for a sustainable world of work 25
Real-life examples bringing to life Step 3. ABB is a leading global technology Pfizer’s Scientific Institute Pfizer company. In 2012, the company’s Colombia (ICPC for its acronym subsidiary in Colombia launched its in Spanish) is a program primarily Sharing Knowledge Program (SKP), aimed at strengthening the technical skills of offering free courses on technical knowledge future health professionals, and the quantity of for existing and new products, processes and high-quality medical research in the country. technology advancements. The ICPC targets young doctors and health To communicate this opportunity to its target professionals via three cornerstones: audiences – including engineers, programmers, • Knowing Pfizer, focused on showcasing technicians and technologists, maintenance Pfizer as option for internships and and operations personnel and university residencies for professionals and students - ABB Colombia publishes a call for students. interest on social media and networks. • Promoting education and medical research through events and programs in alliance with government and academia. • Recognizing excellence, which supports outstanding professionals and seeks to retain great talents in Colombia. Click here for a more detailed case study >> Click here for a more detailed case study >> Skills strategies for a sustainable world of work 26
Step 4: Developing and implementing an upskilling program Most learning programs require significant financial investment, time and resources to organize. Therefore, ensuring the initiative is developed and implemented in the most efficient way is essential. Overview Key questions to consider The quality, value, and efficiency of the learning This integration of work and learning means • How can the program be implemented in the experience affects every aspect of the upskilling deemphasizing carrot-and-stick incentives such most cost-efficient way? initiative, from its costs (which rise dramatically if as bonuses for those who excel and poor • Which skills provider should be used? employees can’t meet their new job requirements) performance reviews for those who don’t to employee outlook and motivation.7 participate. Those incentives may be effective in • Is mentoring and coaching required to support getting people to take part, but they rarely the implementation of the program? An effective model is continual learning: learning generate interest or commitment. Many corporate that is happening regularly, integrated with the • Will the program be delivered virtually or in- learning and training efforts fall short because rest of a person’s professional life, and oriented person? they stop at delivering knowledge ‒ giving toward his or her own long-term aspirations. employees new information about digital trends • Can employees be engaged early on in the When learning takes place through day-to-day and tools, for example ‒ but no opportunities for design phase to test the approach? experiences, it is far more relevant; employees using them. Companies can consider can see the connection to the work they are • What are the quick wins? Can early progress implementing various techniques to support already doing and the goals they (and their be demonstrated to build confidence with learners including the use of technology tools enterprise) already have. leaders and the workforce? such as virtual reality (VR), social learning environments and role models. Skills strategies for a sustainable world of work 27
Below, we outline some elements that have the potential to boost employee engagement in upskilling programs. Blending learning combines online Learning in the flow of work Diversity and inclusion Social learning fosters learning opportunities with refers to the sequencing of Integrating diversity and inclusion collaborative experimentation, traditional place-based classroom learning opportunities in a way that considerations when setting up mutual support, and collective methods. strengthens the right cognitive upskilling programs ensures intelligence.6 Furthermore, Post COVID-19, organizations will circuits and builds new habits and everyone can have access to coaching and mentoring can be need to consider whether they will capabilities.6 This can make these opportunities. used to be embedded in social move back to in person learning or learning become seamless rather learning. if they adopt blended models. than a separate, formal activity. Employee-led innovation gives Data and AI allows a much faster Technology tools and platforms Early enthusiasts - of a new skill, employees the ability to choose turnaround of real-time data such as apps, chatrooms and upskilling opportunity, technology, the skills, activities and means of collection and analysis for both virtual reality can be used to or strategy - can be deployed to learning that will make a difference employees and the organization engage employees. COVID-19 spark interest and emotional to them and their work.6 itself. This enables employees to accelerated the online delivery of impact within the organization’s pursue a more personalized learning, however there is a culture.6 learning pathway. difference between moving learning online and embracing digital learning. Skills strategies for a sustainable world of work 28
Real-life examples bringing to life Step 4. The Adecco Group (TAG) is Through its Future Leaders Program, Espace Entreprise (EE) is a Swiss the world’s second largest Thai conglomerate C.P. Group Government company which trains Human Resources provider. Following the enables young leaders to switch from and develops apprentices and vertical integration of the company in 2017, their day-to-day work to a 6-month upskilling connects them with local businesses TAG identified and defined new critical skills for program where they can take part in to work on various projects from marketing, their business leaders. They included: real business projects, work with team social media, and website creation to other digital skills, building a business case, pricing, members from various companies and commercial activities. The program lasts three agile working, Lean 6 Sigma, PMO skills. TAG functions, and can be guided by CEOs and years and EE works with various clients to established International Future Leaders (IFL) – other top executives as coaches. Assessment engage apprentices in real life working a program designed to build these skills with a of their leadership, business management, and scenarios. global lens and facilitate participants in building people management skills are conducted along EE adapted their programs in response to a network at the global level. the way, as well as their understanding of the COVID-19 by incorporating future of Group’s values. After finishing the program, The IFL runs for 18 months, with each intake work elements into their curriculum such as AI, participants experience greater opportunities comprising approximately 30 delegates drawn gaming, virtual reality and video apps, allowing to pursue their career across different from Adecco businesses from across the apprentices to develop skills with these business units. world. Applicants are nominated and selected technologies. on the basis of their experience at TAG, demonstrated management and performance criteria. The program is based on face to face training, delivered in partnerships with internal & external SME’s, with participants receiving relevant qualifications (e.g. Design Thinking, Agile Change Management). Click here for a more detailed case study >> Click here for a more detailed case study >> Click here for a more detailed case study >> Skills strategies for a sustainable world of work 29
Step 5: Measuring the success of an upskilling program Measuring the success of an upskilling program is imperative to assess its success in terms of upskilling people and delivering on the initiative's intended objectives. Overview Key questions to consider The success of learning and development Measuring Impact • What types of skills and competencies are programs can be assessed through measuring a Measuring the longer-term impact will help an now evident in the work of trained staff? variety of metrics such as inputs, outputs and organization to understand if the upskilling impact. Metrics depend on specific context, but • How do employees feel about the initiative? program has helped to drive business priorities. for a measurement system to provide useful Examples of the impact that some learning and • How assured do employees feel about their insights, it should include different elements development programs can have include boosting career opportunities? Measuring Inputs productivity (e.g., savings in contractor spending) • Have the business priorities been achieved? Measuring inputs includes assessing metrics such and driving employee progression (e.g., internal as the number of staff who participated in the promotion rate). program and the number of sessions that have Metrics on 'brand health' or social media been run. commentary can indicate whether employees’ Measuring Outputs skills translate into better quality and influence customers’ perceptions of a brand. To gain a deeper understanding of how successful the program has been, organizations should go Last but not least, companies can adopt a skills beyond measuring inputs. Indicators can include audit that helps continually track and analyse measuring outputs such as what skills participants progress. PwC studies indicate that just one-third have built as a result of attending the program and of companies today use analytics to predict and what knowledge has been gained. These monitor skills, there is scope for more businesses measurements can be discovered through survey to take advantage of this.6 results, online learning community activity and the number of downloads of materials which have been shared. Skills strategies for a sustainable world of work 30
Real-life examples bringing to life Step 5. One of the most important obstacles iPeople is an education At Zurich Insurance, the number of in upskilling is measuring the success business based in the employees engaging with re-skilling, of these programs. Philippines. Its Professional upskilling and redeployment According to KPMG – a professional services Employment Program (PEP) aims to improve opportunities indicates how successful the network and one of the Big Four accounting the readiness of learners for the labor market. organization is in developing new skills firms - one way to KPIs to measure PEP’s success include: internally rather than recruiting externally. measure success is by looking at the wider • How many learners are employed and how Success is further measured in a number of macro-objectives of the organization rather soon after graduation ways, for example by analyzing how than the performance of individuals. Upskilling • The wage of jobs secured compared automation augments staff members’ ability programs are designed to meet a business against the average monthly wage to deliver services to customers. need, be it increased customer satisfaction or (minimum) of non-PEP participants; even increased revenue. Therefore, when education is an investment into someone’s measuring the success of a program, it should future – the higher the wage, the faster the be these metrics which are measured as they return for the student. show whether the initiative achieved its desired • Acceptance rate of BPO (business process outcome. outsourcing) for PEP graduates. Click here for a more detailed case study >> Click here for a more detailed case study >> Click here for a more detailed case study >> Skills strategies for a sustainable world of Skills strategies for a sustainable world of work 31 work 31
Appendix: Case studies The following case studies from 16 organizations share additional and more detailed insights aimed at informing and inspiring your thinking and action. Each case study is structured along a set of key questions. Additionally, using the color coding of the skills strategy journey described in Part 3 of the guide and featured below, we mapped which steps are addressed by the information provided. Five steps of the skills strategy journey Skills strategies for a sustainable world of work 32
Location Size of organization Industry Learning stage journey Colombia 100 – 500 employees Industrial Products University ABB Colombia is a subsidiary of the Swedish-Swiss leader in industrial automation company ABB. Step 1 Step 3 Step 4 Step 5 What was the In 2012, ABB Colombia started its Sharing Knowledge Program (SKP) – a free courses program - because it is committed to the education of Colombians and the business need? transfer of knowledge, resulting from more than 100 years of the company’s global research. SKP’s main objective is to bring industry knowledge to different Colombian universities, complementing their current educational offers to promote technical skills needs relevant to the company. Its courses provide current technical knowledge for existing and new products, processes and technology advancements. They can be delivered at ABB facilities, at universities or online and are taught by experts from ABB. The initiative is part of ABB Colombia’s corporate responsibility program that establishes promoting and participating in community activities that encourage economic, environmental, social and educational growth as part of the commitment of the organization with the communities where it operates. What was the target ABB Colombia regards knowledge as engine of productivity and continued market growth in a global environment. Its comprehensive training courses offered through group / audience? SKP are aimed at engineers, programmers, technicians and technologists, maintenance and operations personnel. Courses of 2 to 3 hours are given on site and virtually by company experts to university students and the general public, and attendees can earn certificates of attendance issued by ABB. What were the key To register, ABB Colombia sends a call for expression of interest through social networks. Participation is free and the first ones who sign up have the opportunity to activities? join the training. The courses facilitate understanding of concepts such as energy efficiency, the electrical industry, automation and how it can be applied through equipment to the industry, helping to increase the productivity of processes and therefore, considerably reduce costs. The participants have learned about the latest technological advances in the electrical and automation industries. Technology trends addressed in the courses include: Selection of electrical motors, speed control in electrical motors, electromagnetic conversion, power electronics, robotics, energy efficiency, automation applications, infrastructure for electric vehicles, machine design and power transmission. How has the impact In 2018, 6 courses were taught in 4 universities, reaching more than 200 attendees. 6,000 people were reached through posts in social networks. of the program been measured? Skills strategies for a sustainable world of work 33
Location Size of organization Industry Learning stage journey Switzerland 10,000+ employees Human Capital Services Management The Adecco Group (TAG), based in Zurich, Switzerland, is the world's second largest Human Resources provider and temporary staffing firm. Step 1 Step 3 Step 4 Step 5 What was the Prior to 2017, TAG was the holding company for different country level entities, with each country having their own HR program. As the company embarked upon a business need? transformation to a vertically integrated multinational, it became clear that for company-wide training and development programs were required. One of the primary gaps was a leadership program to accelerate talent through the organization – the company was missing a pipeline of talent with the skills needed at leadership levels. In response, TAG conducted an exercise to identify and define the critical skills for leaders in the new organization, resulting in: digital skills, building a business case, pricing, agile working, Lean 6 Sigma, PMO skills. What program was The International Future Leaders Program (IFL) was established to build these skills amongst the potential leaders in the TAG organization. It is designed to develop skills implemented? with a global lens and facilitate participants in building a network at the global level. The IFL runs for 18 months, with each intake comprising approximately 30 delegates drawn from Adecco businesses from across the world. Applicants are nominated and selected on the basis of their experience at TAG, demonstrated management and performance criteria. The program is based on face-to-face training, delivered in partnerships with Internal & external SME’s, with participants receiving relevant qualifications (e.g., Design Thinking, Agile Change management). Additionally, there are two project elements: (1) groups of 4-5 delegates are allocated a real business problems or potential business ideas by the Executive Committee (ExCo) for which they develop a solution using the skills that they have learnt on the program. Following a selection panel and a presentation to the ExCo, the final winner is presented at the group-wide Global Leader Conference and the idea is subsequently implemented; (2) an in-market project where the delegates independently deliver a project with the objective of creating business improvement in their own area of work. With the global restrictions due to the pandemic the program continues to operate virtually. Did the The IFL program coordinators quickly realized that it is important to involve the delegate's manager and their local HR director in the process so as to ensure that they organization face understand the nature of the programmer, its benefits, and the commitment that it entails on the part pf the participant. To this effect, there is a kick-off call any challenges? with the manager and the local HR staff, and invitations to events and training are shared with managers so that they know the time commitment and can adjust workload. The development of the IFL was internally driven. This reflects the philosophy that while inspiration can be drawn from other training and development programs, a business has its own needs, circumstances and objectives, which are best met by making specific programs. How has the The IFL incorporates an extensive feedback process, which allows the organization to capture delegate's experience of the program and to identify gaps and potential impact of the for improvement. Participant engagement is captured as part of this, and scores are generally high. The delegate's manager and the local HR business are also surveyed program been at the mid-point and the end of the program and asked for their experience of the IFL and whether they see the delegate bringing new skills to their job. Based on this measured? feedback, there is a constant cycle of adjustment reflecting the feedback received. Key indicators collected include internal promotions (since the program aims at progressing talent) and cross-country moves (since the program also aims at talent rotation within the group). Additionally, the retention rate of participants is also monitored, and this is higher than the company average. Skills strategies for a sustainable world of work 34
Location Size of organization Industry Learning stage journey Philippines 10,000+ employees Education Early career iPeople is an education business created as partnership between Ayala, founded in the Philippines and the country's oldest and largest conglomerate, and Yuchengco Group of Companies (YGC), one of the oldest Step 1 Step 3 Step 4 Step 5 and largest conglomerates in Southeast Asia. How does iPeople Predicting future demands is a challenge, as simply asking employers does not work and the future is usually just viewed in short time frames of a few months, making it identify the extremely difficult for academia and education providers to react. Therefore, iPeople meets regularly with employers to learn about their emerging challenges and business needs of forecast future skills requirements. For instance, a skill employers in the Philippines constantly look for is English speaking skills, particularly for high paying jobs in the employers? finance, banking and accounting sector. Additionally, company and industry or sector information is captured, enabling the organization to understand evolution and emergence of business needs and to prioritize high demand capabilities in their learning and development programs. As a result, iPeople can clearly identify gaps and adjust programs to the skills needs of employers. What program iPeople has five higher education schools and two basic education schools which offer a range of employability bridging programs, one of which is the Professional was Employment Program (PEP), which acts as bridge between academia and industry. The goal of the program is to increase the labor market participation readiness and implemented? thus employment speed and average wage accomplished. In an oversupplied labor market, one key objective of PEP is to help graduates stand out. PEP graduates undergo five months of rigorous training focused on both getting a job and retaining that job. Also, iPeople’s classrooms are tech-enabled and designed to emulate the workplace. Consequently, there are no lectures, homework or tests and the professors act as employers. Students are put into real work situations where they are given work-related projects to complete and problems to solve. iPeople then evaluates their students’ outcomes against work standards and if they do not reach industry standard, they are asked to attempt the task again. Teachers are partners in each learner’s journey and work alongside them to achieve their goals. Importantly, the students are not driven by a grade, but by the potential of being offered a job. Did the Moreover, the COVID-19 pandemic required adjustments in iPeople's way of working. Following the upgrade and acceleration of its systems through technology, the organization face organization recognized the need to pay more attention to the different contexts of students, for example by simply identifying if all had access to the internet and a any challenges? computer. The goal was hence to enable all students enrolled in the program to benefit from all learning opportunities. How has the iPeople uses the following KPIs to measure the success of its program: impact of the • How many learners are employed and how soon after graduation; the standard for PEP is 90% employment in 90 days. program been measured? • Wage of the jobs secured compared against average monthly wages (minimum) of non-PEP graduates; education is an investment into someone’s future – the higher the wage, the faster the return on investment for the student. • Given the high demand for strong English language skills, BPO (business process outsourcing) acceptance rate for PEP graduates is used as proxy measurement to evaluate the strength of these skills. Even if other companies prefer strong English-speaking skills, they usually don’t employ the same stringent language tests as that of BPO firms. Skills strategies for a sustainable world of work 35
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