Skill Gap – 87 percent of companies say they either are experiencing gaps now or expect them within a few years

The findings from our survey suggest that companies lack the talent they will need in the future: 44 percent of respondents say their organizations will face skill gaps within the next five years, and another 43 percent report existing skill gaps (Exhibit 1). In other words, 87 percent say they either are experiencing gaps now or expect them within a few years.

Exhibit 1

Respondents expect market and technology trends to play a big part in these shifts. Three in ten say at least one-quarter of their organization’s roles are at risk of disruption in the next five years by these trends. Looking at respondents by industry, those in financial services and in high tech and telecom are the most likely to expect this level of disruption, while those in healthcare services and pharmaceutical and medical products are the least likely. (Explore the results by industry in “An interactive look at skill gaps and reskilling efforts.”)

Respondents see a need for their organizations to address potential skill gaps in a wide range of business areas. When asked where the greatest need exists, they most often say data analytics, followed by IT management and executive management (Exhibit 2). Similarly, when looking at the specific skills with the greatest mismatch between current supply and what will be necessary in the next five years, respondents expecting skill gaps to open during that time most often identify advanced data-analysis and mathematical skills.

Exhibit 2

Nearly all respondents classify closing potential skill gaps as a priority for their organizations, and about one-third say it is among the top three priorities. However, relatively few indicate that their organizations are ready to respond. One-third say their organizations are prepared to address potential role disruptions, and a smaller share—28 percent—say their organizations make effective decisions on how to close skill gaps. A potential hurdle to effective decision making is a lack of visibility into the skills of the existing workforce and the effects that the disruptions will have on workers’ roles. Fewer than half of respondents say their organizations have a clear sense of their current skills, and just 41 percent report that organizations have a clear understanding of the roles that are likely to be disrupted.

Nevertheless, most organizations are taking steps to address their talent needs, often through a mix of actions such as hiring contract or freelance workers and redeploying employees into new roles. The survey suggests that the most common tactic for addressing skill gaps over the past five years has been hiring, cited by two-thirds of respondents. The second-most common tactic, cited by 56 percent of respondents, is skill building, as accomplished through reskilling programs and other efforts. On average, respondents say their organizations take at least two actions to close potential gaps.

Chosen excerpts by Job Market Monitor. Read the whole story @ How companies are reskilling to address skill gaps | McKinsey