In a McKinsey Global Study, some startling numbers were revealed by respondents around the globe:
The study also looked at the strategies that organizations are using to address the skill gap.
Some companies have started to address the skills gaps, and here’s what those respondents believe:
Key take-aways from the study are:
How to Decide Who to Upskill
1. Know what skills are needed.
Conduct a skills gap analysis. Chances are, the Top 3 skills identified in the McKinsey study will be on your list and if not, they should be. They are:
2. Know what factors predict success in learning and applying those skills.
The research is clear – there are individual characteristics that predict how likely someone is to have (or be able to develop) a specific skill. For example:
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Advanced data analytics: A person’s general cognitive ability also sets the upper limit on this skill. Math skills are also good predictor of technical aptitude. Some facets of personality can also help a person to succeed in an upskilling program, such as intellectual curiosity and openness to change.
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Leadership and management: People who are energetic, sociable, and assertive tend to emerge as leaders. But this does not mean that they will be effective leaders. Other personality traits, like compassion, emotional stability, conscientiousness, and openness play a role in leader effectiveness. A person’s preferred leadership style also predicts leader effectiveness. Specifically, a providing a moderate amount of structure and a high degree of consideration for people tends to be the most effective approach.
3. Gather objective data on your candidates and employees.
Use psychometrically sound tests and surveys that were designed for use in talent assessment and have strong evidence of content, construct, and predictive validity. This will give you an apples-to-apples comparison, minimize subjectivity, and help you to make better decisions. Specifically:
For the most accurate results, partner with a psychologist who can interpret the assessment battery and provide you with expert advice to help you make the right placement decisions, whether it be for hiring or skills development programs.
How this helps you to avoid these mistakes:
1. Hiring people for their skills but they don’t actually have them. For example:
2. Putting the wrong people in skill-building programs. For example:
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Relying on subjective data (e.g., performance reviews, perceptions of others) as the sole placement criteria for skill-building programs and finding a trend that indicates bias in the selection process.
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Assuming your top Individual Contributors want to become leaders, putting them through a program after promoting them, and a year later, they quit because they were underperforming.
3. Overlooking talent. For example:
THE BOTTOM LINE. To stay competitive, organizations need to take a strategic approach to filling critical skills gaps and preparing for the emergence of new skills, some of which are still unknown. Doing this requires a scientific, data-driven approach to hiring and selecting people for skill building programs who have high potential to learn, adapt, and develop critical skills in others. To find out more about how PCI can help you do just that, contact Deborah Bell, Vice President of Consulting: [email protected].