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A3 | The future of skills in the changing world of work – building skills in the age of automation to set your people apart

Chaired by Lizzie CrowleySenior Skills Policy AdvisorCIPD Skilled Work sponsor

The future of skills in the changing world of work

“As basic automation and machine learning move toward becoming commodities, uniquely human skills will become more valuable”

Devin Fidler, Research Director at the Institute for the Future

Current skills gaps and shortages

Top 10 skills lacking in job applicants

Source: Employers Skills Survey 2017, Scotland data

34%

36%

39%

40%

42%

43%

45%

48%

48%

60%

0% 10% 20% 30% 40% 50% 60% 70%

Persuading or influencing others

Solving complex problems

Team working

Knowledge of how your organisation works

Managing or motivating other staff

Managing their own feelings, or handling those of others

Customer handling skills

Ability to manage own time and prioritise own tasks

Knowledge of products and services

Specialist skills or knowledge to perform the role

Top 10 skills missing amongst existing staff

Source: Employers Skills Survey 2017, Scotland data

39%

40%

41%

44%

45%

47%

51%

51%

52%

66%

0% 10% 20% 30% 40% 50% 60% 70%

Managing or motivating other staff

Persuading or influencing others

Knowledge of how your organisation works

Solving complex problems

Managing their own feelings, or handling those of others

Knowledge of products and services

Team working

Customer handling skills

Specialist skills or knowledge needed to perform the role

Ability to manage own time and prioritise own tasks

Increased workload for other

staff (53%)

Higher operating costs (30%)

Difficulties introducing new

working practices (28%)

Difficulties meeting quality standards (25%)

Losing business to competitors (20%)

Delays in introducing new

products or services (18%)

The need to outsource work

(9%)

Skills deficits are already affecting the bottom line…

Source: Employers Skills Survey 2017, Scotland data

Growing importance of ‘human’ skills

Growing importance of ‘human’ skills

Analytical thinking and innovation

Creativity, originality and initiative

Active learning and learning strategies

Complex problem-solving

Critical thinking and analysis

Leadership and social influence

Reasoning, problem-solving and ideation

Emotional intelligence

Technology design and programming

Systems analysis and evaluation

Emerging skills 2018-2022

Source: Future of Jobs Survey 2018, Wold Economic Forum 2018

Top 10 skills for the future of work

Judgement and decision-

making

Fluency of ideas

Active learning

Learning strategies

Systems evaluation

Deductive reasoning

Complex problem solving

Systems analysis

Monitoring

Source: NESTA/Pearsons 2017

These trends are only likely to intensify ….

Physical & manual 26%

Physical & manual 22%

Social & emotional 24%

Social & emotional 27%

Higher cognitive 22%

Higher cognitive 22%

Basic cognitive 15%

Basic cognitive 12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2017 hours worked 2030 hours required (demand)

-21%

-

+16%

+32%

-14%

Projected % change in hours worked

Source: McKinsey Global Institute

The business case to action

• internal study to determine the most innovative and productive teams found that they weren’t the ones full of deep technical specialists

• The highest performing teams were interdisciplinary groups that benefited heavily from employees who brought strong soft skills to the collaborative process.

• The important predictors of success were skills like good communication, insights about others, and empathetic leadership

Source: Google, Project Aristotle

Can they be taught?

• A study from MIT Sloan found that soft skills training – even in a factory setting – can improve work productivity in an organization.

• A controlled, twelve-month trial revealed that training in problem solving, communication, and decision-making yielded a 250 percent ROI in eight months.

• Success factors included an overall boost in worker productivity, faster turnaround on complex tasks, and even improved employee attendance.

Developing ‘core’ skills

Develop a learning mindset

Encourage self-reflection

Expand knowledge &

understanding

Leverage powerful LMS

software

Provide opportunities for practice

Provide regular

feedback

What are we doing to help?

The Essential Skills task force

• CIPD

• CBI

• The Careers & Enterprise Company

• Business in the Community

• The Gatsby Foundation

• EY Foundation

• The Skills Builder Partnership

How are we doing it?

Stage 1

Desk research to test Skills Builder against data about what employers look for when recruiting and the expectations of training

Completed June 2019

Stage 2

Testing Skills Builder with employers in roundtables and interviews with employers from a range of sectors.

Completed October 2019

Stage 3

Wider consultation and piloting with trailblazer employers

January 2020-onwards

Stage 4

Publication of the universal framework of Essential Skills, and toolkits to support adoption and use

Spring/ summer 2020

Sebastian Tindall - Head of Learning & Development

March 2020

State of Flux

15% 2.5yrs

Roles to be Automated by 2030 Half Life of Skills - Engineering

“Automation will mean that we should focus

less on technical knowledge and more

on soft skills”

“Automation will mean that we need to reskill

our people”

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BETTER HEALTHHIGHLY ENGAGING, FULLY

INTEGRATED HEALTH

PROMOTION PROGRAMME

We want to make it easier

Automated Care?

Focus on service

Get into the grey

Data Crazy

3 90 59% %Years

Job Related?

Scientist vs Analyst?

DiscretionBalance

Polymath?Relationships