Graig Paglieri is the CEO of Randstad Technologies Group and Managing Director of Global Professionals.
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Although the nation’s traditional economy continues to experience uncertainty and record inflation brought on, in part, by the Covid-19 pandemic, the digital economy is officially in overdrive with no indication of slowing down anytime soon. Many Americans have become far more comfortable ordering groceries or goods from the comfort of their homes than venturing out to brick-and-mortar stores. Businesses of all sizes have adapted, devoting more of their energy and resources to digital platforms than ever before—a lifeline helping some to survive and even thrive.
The rapid growth of the digital economy has led to an increased demand for skilled digital employees. Unfortunately, the skills gap that preceded the pandemic has only grown, making that demand difficult for employers to meet. Companies across economic sectors are scrambling to fill highly skilled jobs such as data scientists and website developers. The surge in online shopping during the last two years has retailers looking to fulfill their digital needs. The impact of this critical skills gap can reverberate throughout a company, leading to consequences it can ill-afford—increased cybersecurity risks, delayed initiatives or product launches, and poor customer service.
Businesses must take steps today to close the gap if they hope to take full advantage of the strong digital economy tomorrow. As education technology company Skillsoft’s general manager of technology and developers Michael Yoo warns: “Gaps in skills don’t just disappear, they only grow wider if not properly addressed.”
Over the past two years, the pandemic has caused companies to adapt and rethink their business models, often in creative ways. Companies must also reconsider their previous past hiring assumptions if they hope to fulfill those key digital openings. Employees have likewise adapted and adjusted to remote work, which offers new levels of flexibility. Organizations understand that prospective employees have come to value this flexibility and ability to work from home and have high expectations that their next position will allow some degree of both.
The same holds true for restrictions companies had previously imposed on new employees, such as requiring them to be near a physical location or to relocate at their own expense. Some talent in highly sought-after fields may not want to move their families, especially for jobs in which working remotely has proven to be a success for both companies and their employees. The digital labor market has far more demand than supply, putting workers in the driver’s seat and allowing them to be more selective in choosing their next position. Workers have new priorities and expectations that companies must understand—and meet—in order to attract the skilled digital talent that’s needed.
The Covid-19 pandemic has caused many Americans to examine their current job satisfaction and rethink career goals. Their career introspection provides an opportunity for companies to close the skills gap by simply looking within and reskilling existing employees.
Simply put, reskilling is training and equipping a current employee with the necessary skills to take on a new role within the company. And according to the findings of a PwC study, workers are overwhelmingly open to the idea, with 77% prepared to learn new skills or even retrain completely.
It’s an all-around win-win for the employee and the company. The employee benefits by learning new job skills and moving into a higher salaried position. The company benefits by demonstrating that it values its employees and by not having to launch a time-consuming and costly job search. Even more significantly, the company is now in a much stronger position moving forward with a digital workforce secured and that talent gap in its rearview mirror.
Reskilling can also help advance workplace equity and diversity. The National Fund for Workforce Solutions, a Washington, D.C., nonprofit, notes that “in a workforce that’s growing more diverse, workers of color continue to face barriers to good jobs and career pathways.” The lost earning power of those workers trapped in low-paying jobs costs the nation’s economy over $2 trillion per year. Training lower-wage workers in new skills could open the door to more career mobility and higher-paying jobs.
The traditional economic landscape looks to remain rocky for the near future as the pandemic refuses to release its hold on the nation. The digital economy, on the other hand, should prove smooth and steady—but only if we take action now.
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