Covid-19 had slowed the pace of development and job creation. With a huge shift in the way things function, it was only expected that the approach adopted by employers would be disrupted. Due to the pandemic, everything from educational institutions to supply chains have faced interruptions. LinkedIn has seen a rise in the number of new hires that are advertising their current skills instead of their past qualifications. Additionally, statistics indicate that the number of jobs requiring a degree has reduced by 40% in the US in 2020 as compared to 2019. This makes it evident that hiring trends are gradually but surely shifting to a skill-based approach. It firmly puts the focus on the abilities of individuals over and above degrees or academic qualifications. While the latter is still important, the increasing relevance of practical knowledge and capabilities is undeniable in the job market.
New concepts and emerging businesses are already driving demand for new skills. Industries like tourism and hospitality are also seeing a greater requirement for multiskilled workers. This helps improve efficiency and output along with serving a variety of customer needs in changing times. The emphasis that employers are laying on skill sets is on the rise. In fact, they are now paying attention to the accreditation and certification of such skills to differentiate workers and hire the best from the talent pool.
Skill-based hiring and training also ensures that workers are prepared for their roles in the organisation or industry appropriately. This also has advantages for employee retention. Organisations that recognise the critical importance of skills and invest in skill development programs, can showcase more value for their team members. Employees are not only promoted on the basis of the skills they are hired for, but are encouraged to acquire new skills and keep improving their value-add to the organisation. This means more incentive to grow within an organisation than to move in search of opportunities outside. Employers are now allocating more resources for training and development programs to combat attrition and retain good talent. Education is now being linked with Embedded Apprenticeship model where students while studying get the chance to work hands-on in an industry. The result of Embedded Apprenticeship is benefits to all stakeholders. Students adopt an “Earn while you Learn” approach & establishments get trained manpower after their final course completion in universities /institutions.
As trends and technology are changing, the value of acquiring new skills is being considered more valuable among employees among other needs such as job security, workplace environment, recognition, transparency etc. According to a LinkedIn survey, 94% of workers would choose to stay at an organisation if they believe that the organisation is helping them learn new skills. Technology is also evolving the mindsets of both employers and employees and breaking traditional patterns. The workforce, across industries, now requires more comfort with tools which are digitally and technologically enabled.
According to the economic survey 21-22, government is also promoting and supporting skill-based learning. The Skill India Mission launched in 2015, focuses on re-skilling and up-skilling in prominent trades. Under the Mission government implements Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Shikshan Sansthan (JSS) Scheme and National Apprenticeship Promotion Scheme (NAPS), for providing short term Skill Development training and Craftsman Training Scheme (CTS), for long term training, for the youth.
A skill-based approach can also help in removing obstacles for employees that are not in possession of a formal degree or are without access to a professional network. It can even the playing field in terms of pursuing merit-based opportunities. Over time, skills should be acquired, presented, and showcased in ways that are verifiable and measurable. This is why, not only encouraging skill acquisition but also the certification and authentication of such capabilities should be the way forward.
Overall, skills are going to be essential in response to the changing dynamics of an evolving economy. Now is the time for employers to invest in the right hiring frameworks that prioritise skill mapping and development and for employees to build the fundamentals of their potential in the workforce. India with its large and diverse population has immense potential as a talent hub. Our workforce needs the right opportunities and direction to rise to the next level and take our economy, our society ahead by leaps and bounds.
