As National Apprenticeship Week comes to an end, Nichola examines the importance of skills and how a greater focus on skills than predefined roles creates a dynamic and flexible workforce.
As highlighted in the World Economic Forum’s recent Future of Jobs report, the current economic environment presents significant challenges to both businesses and workers. The report identifies the five main factors that are reshaping global employment, each with its own set of opportunities and challenges. Interplay between these factors creates complex patterns for job creation and displacement with different impacts across industries.
The digital and tech revolution is expected to create 10 million jobs, while the green shift will generate five million jobs due to the urgent need to combat climate change. These transformations have prompted policymakers to place greater emphasis on the importance of skills for navigating a constantly changing economy.
The pace of change in the workplace is increasing at an unprecedented level. Last month, for example, the UK government released the AI Opportunity Action Plan which outlined the UK’s plan to become a leader in AI. The plan aims at training “tens and thousands” of AI specialists by 2030.
Skills England’s Index of Occupations In Demand provides further evidence that skills are a challenge. It shows that 7.8% in the UK working-age population is employed in occupations in high demand, and an additional 38.5% of them in roles with heightened demand.
In the meantime, industries like finance, technology and sustainability struggle to fill vacancies. This highlights the need for an urgent new approach.
Skills are becoming increasingly important
The value of skills in the context of recruiting, reskilling and upskilling is more important than ever. Skills are becoming more important to businesses as they strive to succeed. This has led to a change in the way skills are perceived within organizations. Companies are now prioritising key abilities and competencies instead of solely focusing on job roles.
We are seeing a growing trend towards the creation of skills-based organizations (SBOs), who place a greater emphasis on skill development than pre-defined roles. This approach aligns workforce management, attraction, recruitment and professional development with the skill requirements of an organisation.
The shift towards a model based on skills
To become an SBO, you must move beyond rigid job descriptions and adopt a flexible and dynamic workforce strategy. This change allows organisations to react quickly to changes in the market, to deploy talent more effectively, and to create clearer career development pathways for their employees. Prioritising skills allows businesses to improve resource utilization, increase internal mobility and build resilience in the face of new challenges.
A business model based on skills allows employees to move between roles with greater ease, to leverage different skill sets and to foster a culture that encourages continuous learning. Organisations can maximise their development investments by adopting a structure based on a clear understanding the required skills. This also allows them to provide employees with clearly defined career paths. It can lead to improved operational performance and reduced skill gaps.
The strategic value of apprenticeships
National Apprenticeship Week is an opportunity for organizations to rethink their approach to developing structured programmes that can help bridge skills gaps. Apprenticeships are a great way to acquire new talent as companies move towards skills-based business models.
Businesses can maximize their investment in skill development by integrating apprenticeships within their talent strategies. They will also contribute to the broader transformation of the economy. This structured approach is aligned with national and international initiatives and ensures organisations remain agile and competitive.
