“Well, in our country,” said Alice, still panting a little, “you’d generally get to somewhere else—if you run very fast for a long time, as we’ve been doing.”
“A slow sort of country!” said the Queen. “Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!”
In Lewis Carroll’s “Through the Looking-Glass,” the Red Queen makes a poignant observation: “Now, here, you see, it takes all the running you can do, to keep in the same place.” This metaphor, aptly named the Red Queen’s Race, may be the most accurate way to describe the challenge facing organizations in their effort to close the global skills gap. Companies have been running very fast, for a long time, to stay in the same place. Maybe they’re not running quite fast enough?
Technology is outpacing efforts to address the global skills gap. The World Economic Forum estimates that new technologies will have replaced 85 million jobs between 2020 and 2025, while simultaneously creating 97 million new ones. By 2028, 44 percent of worker skills will be disrupted. Research suggests the half-life of professional skills has dropped from 10 years to five, and the half-life for many technical skills is now below 2.5 years. Over a billion people will need to be reskilled by 2030, prompting the World Economic Forum to declare a “reskilling emergency.”
Digital disruption is making many technical skills obsolete, and rapidly creating new skills gaps. By the time a new technical skill is identified, learned and disseminated across a workforce, there’s already a new technology or tool requiring a new and expanded skill set. This perpetual cycle makes it impossible for organizations to “close” the skills gap. Instead, it becomes a constant game of catch-up.
What’s more, the modern business landscape is becoming increasingly volatile and unpredictable. To remain competitive, organizations are becoming more agile, pivoting their business strategies based on market conditions, competitors and consumer demands. As their business needs change, so do the skills required to execute those strategies. The globalization of the workforce and the shift to hybrid work means companies are no longer just competing with local businesses for talent but with firms worldwide. As businesses expand their search for talent globally, the skills required become more varied, and the definition of what constitutes a “skills gap” shifts. HR leaders are therefore always in a reactive mode, trying to predict and prepare for skills that may soon be in demand.
Even the definition of skills is evolving. The word “skills” predominantly referred to technical abilities or knowledge in a specific domain. However, the definition expanded over time to include “soft skills” such as decision-making, communication and complex problem-solving. Now, as artificial intelligence is transforming all sectors of the economy, companies are defining “human-centered skills” to include leadership, teamwork and emotional intelligence—skills that are becoming critical as more work is automated, augmented and decentralized. As the definition of skills expands, the “gap” remains a moving target, constantly changing.
That’s not to suggest there’s not a significant, persistent skills gap in the workforce. According to research from McKinsey & Company, 87 percent of companies are either experiencing skills gaps now or expect it within a few years. Nearly seven in 10 HR professionals believe their organization has a skills gap, up from 55 percent in a similar survey in 2021. A large majority of employers (88 percent) feel confident they can develop their employees to close the gap, but workers are skeptical—41 percent of employees don’t believe they have what they need to develop their skills. The majority are looking for more coaching, mentoring and career guidance.
Research from Boston Consulting Group confirms that 68 percent of workers are aware of coming disruptions in their fields and are willing to reskill. More than half believe they need to develop new skills to prepare for artificial intelligence, but most (88 percent) don’t trust their employers to support them in understanding AI.
The skills gap represents a direct threat to an organization’s competitiveness today and in the future. There are simply not enough workers to fill an ever-increasing number of high-skill jobs. Failure to address the skills gap has a direct, negative impact on the business, resulting in less productivity, less innovation and increased risk. To remain competitive, organizations must embrace learning and development as a strategic priority. Unfortunately, less than 15 percent of leaders believe learning is a core part of their overall business strategy. For most, skill-building is viewed as an HR initiative, not a critical business imperative. This will need to change if companies hope to remain competitive.
Organizations should also change how they think about “closing the skills gap.” It’s impossible to close the skills gap. It’s not realistic, nor is it a particularly helpful way to frame this monumental challenge. “Closing the skills gap” suggests a future state where companies will have satisfied all of their talent needs. In this fairytale, there’s no technology, innovation or digital disruption driving new skills. There’s no shift in business strategy. That’s a fictional wonderland, not reality.
The skills gap will always exist, so business leaders should focus on creating a dynamic, adaptable organization where the emphasis is on continual learning, coaching and adaptability. They should foster a culture that encourages curiosity, knowledge sharing and a growth mindset. It may take “all the running they can manage to stay in the same place,” so organizations must also prioritize employee wellbeing and resilience to avoid burnout. After all, this isn’t a sprint or a marathon. This is the Red Queen’s Race and there is no finish-line.
