Skills England can transform workforce development

The government has identified a “fractured skills landscape”, with the UK’s skills shortage doubling between 2017 and 2022 and now representing more than a third (36%) of vacant jobs. However, in the UK, nearly one in 10 (more than 2.5 million) roles have critical demandbut over 90% of these jobs require either relevant work experience or formal education such as degrees. This highlights a critical mismatch between the skills people have and what employers need. We need to create fairer requirements and urge companies and governments to invest significantly in learning and development programs.

However, for workers looking to improve their skills, pathways to skilled careers are often unclear. In addition, the rapid pace of innovation and the short shelf life of technical skills mean that our training system and employer investment often fail to equip learners with the essential skills needed for success. The launch of Skills England, which aims to identify gaps and tackle the fragmented and outdated skills landscape by creating a unified framework bringing together businesses, education institutions and local authorities, is a welcome step in the right direction.

Identifying the skills gap

The UK economy relies heavily on the skills of its workforce, with studies showing that approx a third of the country’s productivity growth between 2001 and 2019 was driven by an expansion of available skills. However, despite the efforts of over 300 higher education providers and their £265 billion contribution to the UK economy from 2021 to 2022, significant skills gaps remain, particularly in key industries.

Construction and healthcare are two sectors the government has singled out in particular as needing urgent improvement. Both face labor shortages and evolving demands that require new technical skills. For construction, the focus is on adapting to advanced technologies and modernizing construction practices, while healthcare faces the need for digital health tools and patient care innovations. Improving skills in these areas is essential to meet the growing demands of industry and to ensure that these sectors remain productive and resilient.

However, the skills gap extends beyond technical competence. Conformable Udemy’s Q2 2024 Global Workplace Learning Indexthe demand for soft skills has seen a significant increase, highlighting a shift in the types of skills that employers value. Skills such as problem solving (up 51 percent), teamwork (up 27 percent) and change management (up 24 percent) are increasingly in demand. This reflects a growing need for employees who can navigate complex workplace dynamics, lead with adaptability and effectively manage transitions during times of change. Organizations recognize that strong change management skills are critical to fostering resilience and innovation in an evolving work environment.

Artificial intelligence can address many skills gaps by automating mundane, time-consuming tasks, allowing employees to focus on developing new technical skills needed to keep pace with innovation. As a result, unsurprisingly, we are seeing a 37% increase in consumption of Gen AI courses, with ChatGPT courses up 40%, reflecting the growing interest in leveraging AI technologies to improve workplace capabilities and productivity. However, this change also highlights the growing importance of soft skills, particularly in change management.

Finally, we also saw a 12% increase in the consumption of diversity and inclusion courses, particularly in the manufacturing sector (31%). This growth comes as many organizations are reassessing their EDI policies, highlighting the continued importance of promoting inclusive workplaces for increased productivity and innovation.

In addition, Research Udemy found that as companies transition to skills-based practices, 67% of employees believe these practices will significantly improve fairness in the workplace, and 66% say they will promote a more diverse and inclusive work environment . In particular, AI will play a crucial role in this transformation, helping to identify and mitigate bias in hiring and promotion processes, ensuring that all employees have an equal opportunity based on their skills and contributions. This integration of artificial intelligence into EDI efforts is a welcome change that many employees want, reinforcing the commitment to a fair and equitable workplace.

How organizations can drive the success of Skills England

To effectively support Skills England, organizations can take a proactive approach in a number of key areas.

Invest in workplace learning programs

According to us Global Learning and Skills Trends Report77% of workers worldwide are keen to learn new skills or retrain. Companies that focus on employee development can increase flexibility, improve employee readiness, and help close talent gaps.

Take advantage of online learning

In a hybrid work environment, organizations can use online learning platforms. By working with local areas and tailoring training initiatives to meet specific regional needs, organizations can ensure that no part of the country is left behind in the pursuit of skills development.

Prioritize leadership training around Gen AI

Addressing the Gen AI skills gap is critical. Our research indicates that only 48% of employees believe their executives are prepared to lead Gen AI initiatives and 44% lack confidence in their leadership’s ability to mitigate the associated risks. To bridge this gap, organizations need to prioritize leadership training around Gen AI, and leaders should immerse themselves in understanding these technologies.

Nurture and manage innovation

Once leaders have a solid understanding of Gen AI, they should focus on cultivating and managing innovation. This includes developing a comprehensive company-wide strategy to integrate Gen AI, along with establishing policies and practices that support this integration. Finally, effective communication is vital; Leaders must drive and inspire change across the organization to ensure all employees are aligned and engaged in the evolving skills and technology landscape.

Tackling the UK’s growing skills gap requires a co-ordinated effort between government, business and education. The Government’s launch of Skills England is a crucial step in tackling this challenge, creating a unified approach to bridging the gap between the skills workers have and what employers need.

However, for this initiative to succeed, organizations must take an active role by investing in employee learning and development, prioritizing technical and soft skills, and embracing emerging technologies such as Gen AI. By doing so, companies can not only close their own gaps, but also support a more resilient and competitive workforce in the UK, ensuring long-term economic growth and regional development.

Bill O’Shea is VP EMEA at Udemy