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Just How Much Is the Skills Gap Truly Costing Companies?

  • On 22nd Feb 2020
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Story by Learnerus Lifelong

Too many times within companies, the leadership just tries to make do with the skills their employees have to offer. Instead of following this path, it would be much more cost-effective if those in charge would put their belief in lifelong learning opportunities for the people that are working day in and day out for them. It is much easier to train a current loyal employee and introduce new skills to their repertoire rather than having to hunt down a brand new hire to the company that may or may not have the same amount of devotion from within.

Taking a Look at the Numbers

According to a New Career Builder survey, it is estimated that companies lose nearly one million dollars annually on average as they have positions open that cannot be filled because of a widening skills gap. Their employees currently do not have the abilities needed and the company’s owners can’t find qualified individuals outside the company quick enough to come in and get hired without it affecting their bottom line. According to the survey, about 60 percent of U.S. employers have job openings that stay open for up to 12 weeks or even longer.

With the Economy Maintaining Growth, Expect More of the Same

The economy in the United States has not looked this good for decades. In fact, the economy has seldom looked better in the last 50 years.

According to the Labor Department, the U.S. has more jobs currently open than unemployed people needing a job. Economists have a term for this rare type of situation. It is called “full employment” as those that are really searching for full-time employment should have no trouble finding it.

Matthew Luzzetti, chief U.S. economist at Deutsche Bank, realizes these numbers are one for the record books. “The job market looks good on about any measure,” he said. “While the unemployment rate is the lowest since 1969,” said Luzzetti, “a better measure is to look at the unemployment rate that includes people working part-time because they can’t find a full-time job. That is low, but it’s only the lowest since 2000.”

Whichever way you look at it, the unemployment rate is the best the U.S. has had for quite a while. In fact, as companies look harder and harder for employees, hourly earnings continue to rise as businesses do not want to lose their workers and want to offer a wage to new employees that will entice them to jump on board.

Employers Aren’t the Only Ones Noticing

Employees are quickly recognizing their need to improve upon the skills they currently have. ResearchNow conducted a survey about the Udemy Skills Gap Index. This survey was about how employees are noticing they need new skills to make themselves more valuable in the workplace. As you can see from the graph above, there is common thinking between people that work for a variety of industries.

How to Battle the Skills Gap Problem

Instead of looking for outside help, companies are investing in training their workers to combat against the skills gap problem. Basically, the solution is to develop lifelong learners that want to improve upon their skills year after year, and at the same time, these employees are becoming indispensable to their companies.

How Can You Develop Better Job Skills to Keep Yourself Relevant in Today’s Workforce?

Perhaps you have seen this firsthand at the company you work for. Different skills are in need and it appears that nobody is able to step up and contribute appropriately. If you have noticed this, now is your chance to make a game-changing move.

You could be the one to land that next big position with the higher salary and climb up the company ladder. How can you do it? There are a couple of ways you should look into. Approach the owners and chief executives at your current company and let it be known that you are willing to develop the needed skills they are searching for to benefit their company. They may be able to offer you up some ideas and will definitely take note of your ambition and appreciate it.

We at LearnerOn.Net can definitely help in these situations. We provide easy access to more than 17 thousand courses that are specially created to further current skills and promote a love for lifelong learning. Whether you take the initiative to choose and take these courses on your own or with the blessing (and financial help) of your bosses, either way, you are benefiting in the long run and making yourself more desirable to other employers at the same time. Through a quick search, you can find a number of courses that will correspond with the skills you are looking to acquire.

Too many adults have a tendency to settle in the workforce. Years go by and they become complacent. Don’t let this happen to you. Develop a love for lifelong learning and you will soon have more career options than ever before. In addition, if you work in Human Resources, now would be the perfect time to initiate a training program for those interested in broadening their horizons and ensuring they do not become obsolete in the workforce. After all, building from within is much easier than adding on from the outside.

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Originally posted on Medium

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