Workforce development cycle
In a fast-moving technological age, investment in staff training pays off for the firm and the individual
Adaptability of the workforce is critical. That is the view of the World Economic Forum, which believes it “pays to enable the workforce to contribute to the technology revolution and to be able to cope with its disruptions”.
Advent of artificial intelligence (AI) and the fourth industrial revolution are bringing changes to the economy and the future of jobs, while employees simultaneously face extended working lives.
“There is a perennial need for businesses to address skills and productivity issues, and the government’s post-Brexit ambitions for a globally competitive and balanced economy, requiring a highly skilled, innovative and entrepreneurial workforce,” explains Professor Chris Rowley, expert in human resource management at Cass Business School, City University of London and Kellogg College, University of Oxford.
He points out that lifelong learning is “even more vital with changes such as AI”, adding the 2019 Centenary Commission on Adult Education report argues for a national adult education and lifelong learning strategy in the light of a 45 per cent dip in funding over the past decade.
Incremental skills acquisition
As the nature of jobs evolves, incremental acquisition of skills over a person's career is likely to be fundamental to ensuring job security, business productivity and growth.
Dan Lucy, principal research fellow at the Institute for Employment Studies, believes there has been “a resurgence of workforce planning because of the technological change taking place and the perceived disruption”.
“Mapping the type of work and skills needed, along with having an extensive learning programme and mentorship programme, is very powerful for employees and organisations, which can fill their skills shortages internally,” he says.
The talent continuum is a holistic approach for unlocking human potential in a perfect storm of technology
There are many ways businesses can support workforce development. While this can include external or online training courses and help with study, it can also involve less formal upskilling, through shadowing more experienced staff, temporary moves to different parts of the organisation to learn new skills, or provision of a mentor or coaching sessions.
In Randstad Sourceright’s 2020 Talent Trends Report, the global human resources consultancy highlights the need to focus on the talent continuum, defined as the unending process of evolving the competencies of employees to complement technological innovation.
The company’s chief people officer Cindy Keaveney explains: “The talent continuum is a holistic approach for unlocking human potential in a perfect storm of technology.”
Investment in upskilling
At Amazon, the business recognised the urgent need to help its workers upskill in announcing a $700-million (£541-million) training investment last July.
As part of Upskilling 2025, Amazon launched training opportunities for 100,000 of its US employees whether they work in an office, warehouse or are out on the road making deliveries.
Among initiatives are its new academy to equip non-technical Amazon employees with skills to transition into software engineering careers, while a Machine Learning University will train thousands of employees in those higher skills.
And it’s not just global corporations leading the way. At construction business Willmott Dixon, ranked fourth in the 2020 Sunday Times Best Companies to Work For list, the concept of lifelong learning and upskilling is embedded in its culture.
The business spends more than £2.5 million each year on training its 1,700 staff, where each employee with five years’ service is eligible for a £750 personal learning fund to acquire any new skill they wish.
Kate Jansen, director for organisational development and learning at Willmott Dixon, reveals its employee turnover is below 6 per cent, a figure she puts down to a “learning ethos deep rooted in our core”.
“Many of the jobs of the future haven’t been defined yet and one strategy we adopt is to prepare our people for exactly that: the unpredictability,” she explains.
“This means ensuring there is a readiness for change in the business. We have teams investigating [future business needs] and preparing us. They are feeding into the learning function just how we need to adapt.”
There is no age limit on learning, with one 72-year-old employee recently completing an NVQ qualification, she says.
‘Mid-life MoT’
The Institute for Employment Studies’ Lucy adds that interventions, such as a “mid-life MoT”, can be “a proactive way of addressing some of the risks that might emerge now retirement age has increased and employees face extended working lives”.
Such upskilling within an organisation makes sound business sense, says Rowley, particularly when considering the cost of recruitment over retaining existing staff.
“There are benefits of retaining staff and developing their functional flexibility via skills investment, rather than simply poaching those with ‘oven-ready’ skills from a fixed pool, which is not sustainable,” he says.
Willmott Dixon’s Jansen agrees. “Learning and development gives a competitive advantage, and makes people happy and motivates them. It is about creating an environment where people aren’t afraid of anything new and embrace the changes that are ahead,” she concludes.