The field of Human Resource Management (HRM) is constantly evolving and therefore identifying key skills for the future workforce has become crucial. In recent years, the (r)evolution of entire industries has taken place, supported by disruptive technological advances such as automation, artificial intelligence, COVID-19 and increasing globalisation. As a result, companies and professionals must consider what the essential and most effective skills of the future will be. Answering this question is highly important, especially considering that it is directly linked to the success of organisations.
With the rise of the digital age in the late 20th century, technology evolved rapidly. Compact computers enabled the ownership of portable devices, while the Internet's emergence impacted both businesses and individuals. This revolution necessitated a substantial skill shift, especially in technical and digital competencies, for success in this new environment.
The early 2000s were a crucial moment when globalisation and rapid technological advances reshaped the business landscape. Borders blurred, creating a more interconnected world where international connections became a critical success factor, increasing the importance of language & intercultural skills. In the meantime, the digital revolution has led to an increase in the need for more complex technical skills. Programming, networking and software skills became essential as organisations sought to adapt to the evolving digital environment.
Then, about ten years later, advanced data analytics became the key driver for success and the development of big data and analytics revolutionised industries. This change also led to a greater emphasis on data security for both legal and natural persons, leading to an increased demand for even more advanced technical knowledge and experts in data security.
Since 2020, COVID-19 and increasing automation have profoundly changed our lives, especially with the widespread adoption of remote working across all industries. This change emphasises the importance of digital collaboration tools and platforms for the coordination of remote teams, which require appropriate skills. As automation reshapes the labour market, human skills such as emotional intelligence and interpersonal skills are becoming increasingly important, especially in remote work. This was visible at the beginning of the pandemic when the importance of empathy, adaptability and effective communication to get through uncertain times became clear.
In line with socio-cultural, socio-economic and technological changes, the skills required will continue to change in the future. You can find out how the required skills are currently forecast in the course of the article.
The data indicates the urgent need for proactive actions, not just in offering employees opportunities but also in guiding them through the changes and ensuring they perceive them as opportunities rather than threats.
As a result of globalisation, demographic shifts and technology, the workplace has been reshaped, and individuals and organisations must adapt to remain competitive in an uncertain and challenging environment. These skill gaps are already visible, following a study from McKinsey, 87% of companies worldwide are experiencing already skill gaps or expect them within the next 5 years.
The following chart shows which skills will become more relevant and which will be less relevant in the future.
As visible in the graph, physical & manual skills as well as basic cognitive skills will become less relevant by 2030 whereas higher cognitive, social & emotional and technological skills will become more important.
The reduction in hours spent on physical, manual, and basic cognitive tasks will necessitate workers to deepen their existing knowledge or acquire new skill sets. While the demand for certain professions won’t decline, the shift will occur due to the increasing automation of work activities that can be automated. Consequently, the need for both basic and advanced technological skills will rise. Individuals who grasp current and future technologies, coupled with the ability to innovate and develop, will be highly valued. Although this won’t apply to the majority, the importance of everyone acquiring at least basic digital and technological skills will become increasingly evident by 2030 and beyond.
As machines advance, it’s evident that they cannot fully replace humans in every aspect. Specifically, social and emotional skills—such as empathy, effective communication, and leadership—will play a crucial role in fostering positive international collaborations, maintaining healthy company cultures, and achieving success in the future. Additionally, there will be a shift from basic cognitive skills (which can be automated) to higher-order cognitive abilities like critical thinking, creativity, and decision-making.
Curiosity and Continuous Learning: Maintaining curiosity and a commitment to continuous learning not only keeps employees adaptable and open to change but also sharpens their ability to navigate today's ever-evolving landscape. With all mentioned above, it's necessary to have this open and positive mindset towards what's yet to come.
How to successfully bridge the skills gap?
As discussed earlier, the skills needed today may not suffice for the future. Companies must invest in developing and empowering their workforce with the necessary skills or hiring individuals who already possess them. By engaging in development initiatives, employees have the opportunity to bridge any skill gaps they may have. This can involve acquiring new skills, known as reskilling, or enhancing existing ones and gaining additional knowledge relevant to their current role, referred to as upskilling.
The graphic below explains the difference between Reskilling & Upskilling, the purpose and the advantages. Depending on the job, the company and the future need either one of the other is the appropriate solution.
Sources: Agrawal et al. (2020), beyondbots, Bughin et al. (2018), Bruggs et al. (2023), McKinsey (2023), Mouddene et al.(2018) Whiting (2020)