Our Workforce 2020 data shows that executives across industries are facing similar challenges when it comes to finding the talent they need. Like executives in financial services, consumer goods, healthcare, and other industries, retail executives are having difficulty recruiting employees with the right mix of skills—and are feeling limited by it.
Retailers should consider developing employees from the inside rather than looking outside for the right candidates. Employees today are dissatisfied with the training and tools available to them, and many say that more development opportunities would increase their loyalty and engagement with their current job.
Well-trained employees with up-to-date skills are essential to building stronger companies. By providing more opportunities for training and skills development, offering more opportunities to pursue educational opportunities, and creating a culture of learning, companies will be able to better-equipped to engage and retain their best employees—and build a leadership pipeline for the future.
For employees—Millennials and non-Millennials alike—obsolescence is a bigger concern than layoffs. But as the chart below shows, only 19% say economic uncertainty is a concern, meaning their worries are likely skills-related.
Employees are not confident in their current skill sets, especially in the Americas, where fewer than 40% say the skills they have today will be what is needed in their jobs in three years.
Technology skills in particular will continue to lag. The need for skills like analytics, cloud, and programming/development will grow sizably over the next three years, but less than half of employees expect to be proficient with most of these key technologies.
Better training and education opportunities would benefit employees and businesses alike. Today, less than a quarter of executives say they offer education as a benefit, and incentives for pursuing educational opportunities are also uncommon. With more incentives to pursue education and participate in supplemental training programs, employees would expand their skill sets and likely inspire peers to do the same—with the added bonus of making employees happier and more engaged.
Our Workforce 2020 surveys show that, around the world, employees are unsatisfied with the learning culture at their companies. Fewer than half say their company retains, updates, and shares knowledge, and even fewer say their company offers incentives for pursuing further education.
Executives may not think their employees value learning and development opportunities, but our data shows otherwise. In fact, employees rank supplemental training programs as the top benefit after cash-based incentives like compensation, bonuses, and retirement plans. What’s more, companies’ youngest workers are concerned about their futures—36% of global Millennials say a lack of opportunities for advancement is a top job concern, and just 39% say their company has outlined a clear career path.
What is the way forward for businesses looking to build strong learning cultures? To start, companies can provide more opportunities (even informal ones) for training and skills development, offer incentives to employees for pursuing relevant educational opportunities outside the office, and create an environment in which information-sharing is encouraged and rewarded. The companies that get this right will have better-trained, more engaged employees—and a better shot at success.
People are afraid that their jobs are going to leave them behind. Obsolescence is a serious concern for employees everywhere—even for Millennials just starting out in their careers. 40% of Millennials say this is a top job concern, and fewer than half say the skills they have today will be what’s needed in their jobs in three years.
Millennials are no more likely than non-Millennials to say they will have advanced skills in key technical areas like cloud, analytics, and programming and development—but they are looking to improve their performance through feedback and other development opportunities. In fact, Millennials expect feedback 50% more often than other workers, and many say development-related benefits would increase their loyalty.
Skills development for Millennials is a key part of planning for the workforce of tomorrow, closely tied to leadership and succession planning. For more on the wants and need of Millennials—and how companies are preparing to meet them—register for Wednesday’s webinar on the Millennial Misunderstanding.
Companies are having a hard time finding skilled employees. In fact, nearly half of the firms we surveyed have trouble recruiting employees with even base-level skills. These challenges in the talent marketplace suggest that companies should focus more on identifying and developing talent from within—yet most of them are not doing so.
Fewer than one-quarter of executives say their companies widely offer education as a benefit to keep employees loyal and engaged, and less than half say their companies have a culture of continuous learning. What’s more, employees may not be motivated to develop skills on their own time, as most companies are not sending the message that there is room for advancement: only 31% of executives say when a person with key skills leaves, they fill the role from within the company.
As globalization makes the task of managing a workforce increasingly complex, businesses need to create broad, sustainable learning cultures. This may start with incentives for pursuing education, continuous training opportunities, or stronger mentoring programs (but beware tedious, impersonal, and mandatory development programs). Providing employees with a clear career path and allowing them to develop key skills will increase loyalty among employees and build a stronger workforce that can take the company forward.
Companies everywhere are struggling to develop leadership and learning cultures—this is even more true in certain regions. We surveyed executives across North America, Latin America, Europe, and the Middle East and Africa and found that workforce strategies are different around the world—as are the outcomes. For example, in the Middle East and Africa, companies are more likely to struggle with leadership and learning.
As the chart above shows, leadership is lackluster everywhere; just over one-third of companies say leadership talent is sufficient to drive global growth. But the situation is even worse in the Middle East and Africa, where just one quarter say so. Lackluster leadership often points to a lack of learning, as companies that are not motivating employees to learn and develop skills are not preparing them to be the leaders of tomorrow.
It makes sense, then, that the Middle East and Africa also are behind when it comes to learning and development. While the region is ahead in mentoring, it lags in retaining, updating, and sharing institutional knowledge; in creating a culture of continuous learning; and in offering incentives for pursuing further education. Meanwhile, executives in North America are ahead—though even those numbers are not as high as they should be. 56% say their company has a culture of continuous learning, and 47% say their company offers incentives for pursuing further education.
Workforce strategies vary by region, but everyone could use improvement. To better meet workforce goals, companies need to focus on learning and development. Finding better leaders who can drive global growth and manage an increasingly diverse workforce starts with developing talent.
Our survey results show that firms are not doing enough to identify and develop talent. Although nearly half say finding employees with base-level skills has an impact on their workforce strategy, fewer than one-quarter say their company offers education widely to employees.
Yet training and development initiatives would not just improve employee skills—they would also make the company a more attractive place to work. When asked what their ideal, but realistic, goal for their career in five years is, many employees focused on learning and development, both for personal satisfaction and advancement opportunities.
As the workforce becomes increasingly global, diverse, and flexible, companies will need to focus on developing, rather than recruiting, talent to be competitive—in the process, they’ll likely find their employees are more engaged and loyal, too.