Training and Development

The Skills Gap Challenge: Are Employers Stepping Up?

Bridging the skills gap by upskilling current employees.

The Need for Upskilling and Reskilling

In today’s fast-paced business world, staying competitive means keeping up with the rapid changes in technology and industry demands. Companies must take a proactive approach to address the growing skills gap and enhance employee development. A Deloitte study found that a whopping 68% of workers are ready to retrain under any circumstances, and 28% will do so “if necessary.”

Upskilling and reskilling are vital strategies. While upskilling enhances existing skills, reskilling provides employees with entirely new abilities. Both approaches are essential to maintaining a competitive edge, fostering innovation, and ensuring sustainable growth.

The Big Stay: Emphasizing Training

The COVID-19 pandemic brought about the Great Resignation, where many employees left their jobs in pursuit of better opportunities and higher salaries. However, as economic instability persists, workers are now prioritizing job stability and meaningful employment over frequent job changes. This shift has led to the “Big Stay,” where employees are more inclined to remain with their current employers. The pandemic’s Great Resignation has slowed, and the uncertain economic outlook has made the risks of changing jobs too high for many workers. Many organizations have adjusted their work environments to retain employees, ensuring they became healthier, more positive places to work. Companies strive to create people-first cultures, partly as a result of the cost of staff turnover, and the ensuing better places to work seem to be a significant factor contributing to the Big Stay.

Leveraging Interim Workers

Interim workers are becoming a crucial solution to the skills shortage in HR and finance. According to Wade Macdonald’s research, 39% of interims are hired to fill gaps in short-term skills, and 82% are focused on delivering results. Interim workers bring high-level skills to meet immediate organizational needs, supporting business changes and strengthening project teams.

Bridging the Skills Gap

The skills gap continues to widen as automation and AI reshape industries. Employers and employees often have different priorities when it comes to skill development. While employees seek business and financial skills, employers value critical thinking, creativity, and communication. Bridging this gap requires collaboration and a mutual understanding of the benefits of upskilling and reskilling. Employers must offer training opportunities that align with both organizational goals and employees’ personal responsibilities.

Demand for Continuous Learning

A recent survey by TalentLMS and Workable reveals a strong demand for continuous learning among U.S. employees. About 71% of employees want to update their skills more regularly, and 80% desire more investment in upskilling and reskilling from their employers. The primary motivator across all age groups is personal growth, followed by meeting job requirements and staying up to date with industry changes. Interestingly, 37% of employees worry about their current skills becoming obsolete, and 64% find upskilling and reskilling have supported job security.

Future-Proofing the Workforce

Addressing the labor shortage through the Big Stay and strategic reskilling is crucial for HR professionals. By focusing on employee development, leveraging interim workers, and investing in learning and development, companies can bridge the skills gap and ensure long-term success. This holistic approach not only meets immediate needs but also prepares the workforce for future challenges, driving organizational growth and resilience.

Boost Talent Retention with Career Growth Opportunities

Marisol Ciovacco

A concept image representing career growth opportunities.

The connection between career growth opportunities and employee retention is more critical than ever. Even though investing in employee growth is widely acknowledged as beneficial, many organizations still struggle to align their career development strategies with what their workforce truly needs.

The Career Development Challenge

The modern workforce is facing a significant challenge: younger employees often find themselves stuck without clear career paths or adequate educational support. Younger workers are looking to advance but encounter hurdles due to ambiguous career development opportunities. With the pace of technological change and economic shifts, many are left uncertain about their future prospects.

The impact of continual career development on talent retention cannot be overstated. Companies that invest in career growth opportunities see an increase in productivity and retention. On the other hand, companies without resources for career advancement saw a 19% turnover rate. It’s clear that high turnover is often fueled by limited advancement opportunities rather than just salary concerns.

Traditional career models are becoming obsolete. The escalating cost of higher education and the flattening of organizational hierarchies have left many employees feeling stagnant. The issue of employees feeling “stuck” and disengaged in their roles is also alarmingly common. This widespread phenomenon, where employees become disheartened and disconnected from their work, underscores the urgent need for effective career development strategies. Innovative strategies such as “just-in-time” skill acquisition and enhanced internal mobility offer promising solutions to these challenges.

Strategic Actions to Elevate Career Growth

To close these gaps and strengthen talent retention, HR professionals should consider the following dynamic strategies:
Design Targeted Learning Initiatives: Create training programs that align with both the immediate and long-term career goals of employees. These programs should focus on skills and knowledge that directly support career progression, making the path to advancement clear and attainable.
Foster Internal Mobility: Establish or enhance systems that facilitate internal job transfers and career shifts. By providing employees with opportunities to explore different roles within the organization, you can keep them engaged and reduce the likelihood of them seeking opportunities elsewhere.
Adopt On-Demand Skill Training: Implement a model where employees receive training and resources precisely when needed. This approach can include offering flexible learning options like online courses, workshops, and microlearning opportunities, ensuring employees are always prepared for evolving job demands.
Build Transparent Career Ladders: Develop and clearly communicate career progression pathways within the organization. By outlining potential career trajectories and the steps required to achieve them, you can alleviate uncertainty and enhance job satisfaction.
Encourage Regular Career Conversations: Initiate ongoing dialogues between employees and managers about career goals and aspirations. Regular check-ins can help identify and address career development needs, keeping employees motivated and aligned with organizational objectives.

Seize the Opportunity

Incorporating these strategies into your HR practices can transform your work environment, aligning educational opportunities with career growth opportunities and fostering a culture of continuous development. By tackling the intertwined issues of career growth, educational support, and internal mobility, organizations can significantly boost employee engagement, reduce turnover, and build a more resilient and capable workforce.

Beyond the Buzzword: Realizing the Promise of Career Management in the Modern Workplace

Marisol Ciovacco

In today’s fast-paced and ever-evolving job market, career management has become more than just a buzzword—it’s a crucial element in ensuring employee fulfillment and organizational success. According to the APA’s 2023 Work in America workforce survey, a staggering 91 percent of employees underscore the importance of continuous learning opportunities at work, yet less than half report their employers provide such options. This gap between employee expectations and organizational offerings has led to a concerning trend identified by Gartner in 2018, where a lack of career advancement opportunities emerged as a key driver of employee turnover. But what role do HR departments play in bridging this divide, and how can they navigate the complexities of fostering career growth and internal mobility?

The strategic role of HR departments includes an unmistakable responsibility to forge distinct career pathways within an organization. This involves meticulous analysis of the company’s roles and designing a navigable route through various positions or departments aimed at culminating in a specific role for the employee. To facilitate this journey, HR professionals are tasked with crafting and executing training and development programs specifically aligned with these envisioned future roles, thereby fostering employee growth and engagement.

Following the establishment of these professional development initiatives, it becomes crucial for HR to conduct thorough performance evaluations and feedback sessions. These interactions serve not only to steer employees along their career trajectories but also to validate the efficacy of the training provided. Modern HR software emerges as a valuable tool in this process, offering the capability to monitor and assess the career progression of employees through detailed analytics and surveys. Such technology facilitates a thorough assessment of the effectiveness of career development initiatives.

Internal mobility, which encompasses both lateral and vertical movements within an organization, plays a pivotal role in enhancing employee retention. Studies have shown that 62 percent of employees are more inclined to remain with their current employer after making a lateral move. Additionally, embracing internal mobility can lead to significant cost savings, with the cost of replacing an employee averaging around 85 percent of the outgoing employee’s salary.

To foster a culture of internal mobility, HR departments can adopt several effective strategies. Initiating an internal job posting system can motivate existing employees to apply for new roles within the organization, thereby harnessing the talent within. Moreover, the implementation of mentorship and shadowing programs can equip employees with the necessary skills and knowledge for various positions. Ensuring transparency throughout the internal recruitment process is essential to cultivating trust among employees and reinforcing the organization’s commitment to their career development.

However, promoting internal mobility is not without its challenges. Departmental silos, for instance, can impede the seamless exchange of information, limit cross-departmental collaboration, and restrict the opportunities available for employees to advance or transition within the organization. To navigate this obstacle, it’s crucial for leaders to identify and encourage individuals who can bridge these silos, facilitating better communication and cooperation across departments.

Moreover, HR professionals must navigate the delicate balance of managing employee expectations regarding promotions and role transitions. This involves guiding employees in setting realistic career goals and providing clear pathways for advancement. By addressing these challenges head-on and implementing strategic solutions, organizations can create an environment where internal mobility thrives, ultimately leading to increased employee satisfaction, retention, and overall organizational success.

Navigating the intricate landscape of career management and internal mobility requires a delicate balance, strategic foresight, and a commitment to fostering an environment where employees can thrive. As organizations strive to close the gap between the aspirations of their workforce and the opportunities available, the role of HR departments becomes increasingly pivotal. By designing clear career pathways, supporting continuous learning, and embracing the potential of internal mobility, HR professionals can significantly enhance employee satisfaction and retention.

A Culture of Compassion: Can We Teach Leaders Empathy?

Marisol Ciovacco

The benefits of promoting an empathetic workplace are too significant for HR professionals to ignore. Companies where leaders are perceived as empathetic see a reduction in employee turnover partnered with a rise in productivity. On top of a boost in creativity, innovation, and efficiency among employees, a 2021 survey found that the presence of mutual empathy can also lead to an increase in company revenue. At the other end of the spectrum, companies that neglect fostering empathy will find themselves dealing with the resulting challenges. A recent survey found that about half of employees left their jobs because they didn’t feel a sense of belonging, and 42% of employees said they resigned due to an inability to connect with their colleagues (a 5% increase from 2021). With these consequences in mind, HR professionals need to foster a workplace culture that will ultimately lead to company success rather than a never-ending recruiting process caused by low employee retention.

At first glance, some statistics show promise for the state of empathy in the office. A 2023 report determined that 67% of CEOs believe themselves to be more empathetic today than they were before the pandemic. However, the truth is revealed not only among leaders but their employees. To contrast CEOs reported perceptions of themselves, the same report found only 59% of employees actually think their CEOs are more empathetic. To further expose the actual state of empathy in the workplace, only 66% of employees believe they work in an empathetic workplace, which is a 12% drop from 2018. If workplace empathy can bring so much success to a company, then why is its presence in the office suffering? More importantly, is there a way to teach leadership to be more empathetic?

The short answer is yes, but it will require consistent work from leaders and dedication to the cause. HR professionals looking to build an empathetic work culture must make an effort to train management in identifying and responding to emotions within the company. While there are many ways to go about this successfully, there are two major components that are absolutely necessary for cultivating an empathetic workplace:

Self-Awareness: When conducting empathy training, managers must first build a foundation of emotional intelligence within themselves. If a leader doesn’t understand their own emotions, they cannot be expected to begin to understand their employees’ emotions. Encourages managers to acknowledge when they are feeling any type of negative emotion and take a short break from work to determine the root cause. HR professionals can also provide managers with a toolkit for them to reference while they are still learning to address their emotions properly once they are identified. Once managers grow more comfortable recognizing and responding to their own feelings, they will become better equipped to guide employees through their own emotions.
Active Listening: Managers who learn active listening skills foster trust with their employees and allow them to feel seen, heard, and respected. HR professionals can hold workshops for managers to practice having open conversations with employees. Management may naturally jump to offering advice when employees open up to them, and that comes with good intentions as they are looking to be supportive in their own way. However, when training managers on active listening, emphasize the importance of patience and allowing employees to lead the conversation. Instead of offering unsolicited advice, encourage managers to ask employees what they need to successfully move forward. Managers who practice these skills will see a positive effect on their relationship with their employees, including a noticeable rise in mutual respect.

Empathy training is something that can be covered in a singular session. It will take time and effort to learn and execute properly. However, if management is consistent, the company will soon start reaping the benefits of a loyal workforce that feels empowered by its dedicated and compassionate leaders.

Inside the World of L&D: Surprising Trends and Insights Revealed

Marisol Ciovacco

An image of a business report representing Training Industry, Inc.'s L&D Career and Salary Survey.

As the demand for learning and development (L&D) professionals soars, driven by technological advancements and the strategic importance of L&D in tackling business challenges, HR professionals must stay ahead of the curve. The journey through this career can be complex and ever-changing. Training Industry, Inc.’s L&D Career and Salary Survey sheds light on this dynamic landscape, offering valuable insights that every HR professional should know.

Current Roles and Structures in L&D

This survey of over 370 learning professionals uncovers the key roles, organizational structures, and work arrangements defining today’s L&D landscape. Predominantly, job titles like training managers, directors of training, content developers, and instructional designers anchor these teams. Notably, there’s been a 14% increase in fully in-person roles over the past year. L&D professionals usually work between 40 to 50 hours weekly, with larger organizations (10,000+ employees) boasting more extensive training teams.

Job Satisfaction and Compensation

Higher salaries often come with longer hours and a sense of being overwhelmed, so job satisfaction is less about the paycheck and more about professional growth opportunities. Those with access to personal professional development budgets report significantly higher satisfaction, underscoring the value of continuous learning and development.

Career Development and Aspirations

Advancing in an L&D career often involves mastering strategic competencies, engaging in continuous professional development, and earning advanced degrees or certifications. Many aspire to become directors of training or chief learning officers (CLOs), focusing on skills such as strategic alignment, change management, and business acumen. Yet, nearly 20% feel they lack the necessary skills to reach their goals, highlighting the need for robust development programs.

Key Takeaways for HR Professionals

Work Arrangement Trends: The shift towards in-person roles impacts how L&D professionals connect with their teams and learners, requiring adaptive strategies.
Professional Development: Investing in personal professional development budgets boosts job satisfaction and retention, making it a smart move for any organization.
Skill Development: Fostering strategic alignment, business acumen, and leadership skills equips L&D professionals to achieve their career aspirations and drives organizational success.

By understanding these trends and providing the right support, HR professionals can empower L&D teams to unlock their full potential, driving both personal and organizational growth.

Access the full report here.

Feedback Frenzy: How Employee Feedback Sparks Success

Marisol Ciovacco

Employee feedback creating a positive work culture.

Employee engagement is one of the most valuable traits a business can have. With engaged employees comes a positive work culture and low turnover rates. While there are many tools to enhance engagement, employee feedback is a strong contender. One Gallup study found that 80% of employees who had received “meaningful feedback” over the last seven days were fully engaged at work.

However, even meaningful feedback can lose its impact over time.

The Power of Continuous Feedback

Annual feedback systems have been the trusted method for most businesses for decades, but they have recently experienced a downward trend. Workhuman’s 2022 The State of the Annual Review revealed that only 31% of the workforce receives annual reviews, whereas 38% receive reviews on a quarterly or monthly basis.

While annual reviews can have a place in the workforce, employers have begun realizing it should not be the sole feedback strategy. A Betterworks study found that companies implanting continuous feedback systems saw better results across the board than those that only completed annual reviews. Continuous feedback systems increased productivity in 66% of companies, compared to annual reviews, which only affected 35%. Companies with continuous feedback also experienced a higher increase in performance, motivated and engaged workforces, and employee retention.

Continuous feedback systems aren’t just for employees. They’re for HR professionals to benefit from as well. HR teams who implement continuous feedback systems are 50% more satisfied with the performance process and are 24% more likely to recommend this approach to performance reviews.

By integrating these strategies, HR professionals can build a system that enhances employee performance while fostering a culture of continuous growth and engagement.

Empowerment Through Open Communication

Designing a strong culture of feedback begins at the top. When leaders seek and implement employee feedback, they lay the foundation for an environment of trust. Leaders should also learn how employees prefer to give and receive feedback to ensure this is a collaborative process rather than top-down. Some employees may prefer giving anonymous feedback while receiving one-on-one reviews, or they might prefer one-on-one reviews in all cases. By opening the floor to employee preferences, the general anxiety associated with employee reviews can be soothed with more comfortable settings.

Additionally, fostering peer-to-peer feedback channels not only empowers employees but also promotes skill development and mutual support across the team. Leaders can allow employees to review their peers’ work or train team members in relevant skills where more development is needed. By creating multiple avenues for feedback, leaders can cultivate a culture of continuous growth and improvement.

From Feedback to Tangible Results

Employee feedback systems are nothing without including a way to measure employee progress. With the right key performance indicators (KPIs), leaders can have a clear view of just how effective their feedback system is.

On an individual scale, their employees’ productivity, morale, job satisfaction, and overall engagement with the company. However, HR should acknowledge that if asked these questions, responses may be skewed as employees may want to seem positive. To counteract this, encourage anonymous surveys where possible.

On a broader scale, HR teams can assess the effectiveness of the feedback system by tracking company-wide metrics such as retention and turnover rates across different teams. Leaders can also evaluate employee development and promotions as metrics for success, as employees who receive continuous productive feedback can grow within their careers.

Success Through Feedback Mastery

A well-implemented employee feedback system is essential for employee engagement, a positive work culture, and reduced turnover. Ultimately, a culture of open communication and thoughtful measurement of feedback effectiveness will empower both employees and HR professionals to achieve sustained success.

Top HR Investments for 2024: Gartner’s Key Takeaways

Marisol Ciovacco

HR leaders highlight the leading areas for HR investments.

As businesses strive to stay competitive and adapt to the ever-evolving landscape, HR leaders are placing a renewed emphasis on strategic HR investments for 2024. According to a recent survey by Gartner, focal points for HR investments include HR technology, learning and development (L&D), total rewards, and talent management. Here are three key takeaways from the survey that HR professionals should keep in mind:

1. HR Technology Remains a Top Priority

For the third year in a row, HR technology tops the list of investment priorities. Nearly half (48%) of HR leaders plan to increase their HR technology budgets in 2024. However, it’s crucial to manage expectations, as many technology implementations are complex and long-term.

Key Points:

Investment in Automation and AI: Driving better business outcomes through advanced technology.

Managing Expectations: Ensuring realistic goals are set for technology transformations.

Employee Engagement: Installing feedback loops and dedicating resources to change management to accelerate user adoption.

2. Increasing Focus on Learning and Development

With the continuous evolution of business and technology, the demand for new skills is rising. Gartner’s survey highlights that one-third of HR leaders plan to boost L&D spending in 2024.

Key Points:

Agile Learning: Embracing flexible and responsive learning strategies.

Technology Integration: Utilizing generative AI, immersive simulations, and AI-enabled skills management tools.

Skill Development: Prioritizing upskilling to address skills shortages and drive organizational growth.

3. Emphasis on Total Rewards and Talent Management

Compensation remains a critical factor for employee retention and attraction. Gartner’s survey found that employees consistently cite pay as a primary reason for job decisions. Additionally, talent management has climbed in importance, with investments planned for performance management, employee experience, and leadership development.

Key Points:

Pay Transparency: Preparing for upcoming legislation and ensuring equitable compensation.

Employee Well-being: Investing in comprehensive well-being support embedded in daily work.

Talent Management: Focusing on career paths, internal mobility, and leadership development.

Maximizing HR Investments

The insights from Gartner’s survey underscore the importance of strategic HR investments in technology, learning and development, total rewards, and talent management. By focusing on these areas, HR leaders can better position their organizations for future growth and resilience, ensuring they remain competitive in an ever-changing business environment.