Current or future skills development: Where should you invest your training budget?
Given the World Economic Forum 2018 Report has verified fears of a major skills shortage which is only set to increase in terms of impact, there is little question that the availability of skilled employees is a major challenge for organisations both now and moving forward. Yet there appears to be a discrepancy between the objectives of the current training being delivered and the future skill requirements of the business. According to the findings from our recent research ‘Training for the future’, organisations are prioritising investment on developing the skills of employees for current roles (37%) rather than the broader issue of the skills they will require in the future to ensure their continued success (24%).
Even more concerning, organisations appear to be aware of the potential problems, highlighting ‘developing highly skilled employees’ and ‘keeping up with the ever-changing skills requirement’ as the two most popular drivers for training and development programmes. So the recognition is there, but less than half of them have increased budgets in order to tackle this inevitable challenge.
Indeed, over the last two years, 52% of skills development budgets have stagnated or reduced and looking ahead the picture is not any more positive – as many as 48% of those questioned expect to see their training budgets stay the same or decrease during the next two years. This clearly suggests that investment levels in future skills development will not meet the demands or ambitions of businesses.
TACK Managing Director, Nick Washington-Jones comments: “As evidenced there is a worrying lack of alignment between what organisations acknowledge as the biggest threats and what they are choosing to do about it. It is clear that attitudes must change. Organisations need to understand the importance of looking ahead and identifying potential skills gaps based on future world of work trends. They must ultimately establish how training can overcome the skills gap by helping individuals continually reinvent themselves to meet the needs of the business.”