In today's rapidly changing job market, a robust people strategy is crucial for all organizations. As industries evolve, the demand for skilled workers is more significant than ever, but the skills needed continue to change. Companies must prioritize upskilling and reskilling to stay competitive and meet these demands.
When we talk about sustainability, we’re not just talking about natural resources; we also include our most valuable asset—our workforce. A thoughtful people strategy prepares organizations for the future while fostering employee growth.
In this article, we'll explore how businesses can adapt their workforce strategies to align with technological advancements and environmental initiatives. We'll discuss the importance of upskilling and reskilling, and how these practices can cultivate a more sustainable workforce.
The 5th Industrial Revolution
Machines. Electricity. Computers. Internet. Artificial Intelligence. Each of the five industrial revolutions has brought forth changes that decreased human effort while increasing output. Accomplishing more with less is the goal of technology, after all. Less time, less investment, and fewer people. But does this mean we, as employers, must “discard” the people we no longer need?
Of course not.
Along with today’s AI revolution, there’s a concurrent “green” revolution that’s focused on sustainability. But sustainability doesn’t stop with being more mindful with resources like power, water, or fuel. We must apply the same focus on our organization’s most complex resource—people. With the right mindset and strategy, the future can be both green and bright for all workers
The workload isn’t shrinking—it’s merely shifting. Employment is expected to grow 7.7 percent from 2020 to 2030.
Think of the next 10 years as the great "lift and shift" period, during which targeted upskilling will become a crucial concern for every entity.
Adapting is what we’ve always done as humans. And one of the best examples of this is the invention of the assembly line by Henry Ford in 1913. Previously, entire automobiles were made by one person, one at a time. Devising a system where each worker performed one task as the car moved along the line caused productivity to skyrocket, opened up many new jobs and made the automobile much more affordable to the average person. Not only that, the Ford Company immediately had to more than triple its workforce.
Today, the automotive industry is again on the cusp of another revolutionary change.
A Sustainability Leader – The Automotive Industry
The Biden administration has set an ambitious goal for the American auto industry: electric vehicles should account for 50% of all new vehicle sales by 2030.
Nearly the entire U.S. auto market has responded quickly, positioning around this aggressive goal with an equally challenging timeline.
This is no future state “maybe” or distant “wouldn’t that be nice?” This is a true industry revolution, and automakers must figure it out — or get out — as the world doubles down on environmental concerns surrounding their industry.
This wide-scale rethinking of the automotive industry is forcing major changes in workforce needs. For example, the design and manufacture of these vehicles requires knowledge of:
- Power Systems
- Control Systems
- Mechanical Systems
The massive and growing body of data (1-2 terabytes per car per day) means that tech skills are needed:
- Data analytics
- Cyber security
- Machine learning
And all those EVs on the road will fuel the demand for:
- Repair and maintenance technicians
- Charging station installers
The need for human skills on the assembly line has changed dramatically. But, as before, we can adapt. A report from the World Economic Forum finds that 95% of the most immediately at-risk workers can be reskilled into good-quality, higher-wage jobs. Without reskilling, only 2% of workers would have an optimal opportunity to transition to new jobs – and 16% would have none at all.
To meet these needs and to assist with the lightning-fast reskilling that’s needed, ManpowerGroup is hard at work creating both educational opportunities and industry partnerships to close the gap.
In Europe, we’re partnering with the InnoEnergy Skills Institute to help upskill up to 800,000 workers in the regional battery supply chain by 2025. In the U.S., we’ve teamed up with Tooling U-SME to offer an Electric Vehicle Fundamentals pathway for our associates and consultants.
While it can be easy to “spiral out” on what the world will look like in ten years, employers need to dedicate time to figuring out what immediate efforts can move the needle on a day-to-day basis.
Change Will Affect Us All
According to the World Economic Forum’s Future of Jobs report, 60% of the global workforce will need upskilling and reskilling before 2027. While upskilling has become a common practice in recent years—with employees gaining new proficiencies to add to their skillset—companies will need to focus more and more on reskilling, which involves training a worker for a completely different role.
A McKinsey report finds that reskilling will be particularly needed in operationally intensive sectors, such as manufacturing, transportation, and retail, as well as adjacent occupations, such as maintenance, claim processing, and warehouse order picking.
Why not just replace a redundant worker with someone who has the right skills? For the same reason you don’t buy a new computer every time you get an update. What you have is perfectly functional, it just needs a reset.
The problem? Only half of workers will have access to adequate training on their own, partially because they may not know exactly what skills to train for, and often due to a lack of money and time.
How to Ensure No One Is Left Behind
Recognize that, while new technology will create new jobs, there will be a catch-up period. Employers may need to sacrifice productivity in the short-term to focus on leveling the playing field for workers who may not have the ability to upskill on their own.
Here are some tips for ensuring equity and inclusion:
- Plot how technology will change the shape of your workforce. Make a roadmap. (use AI to help with this!)
- Include everyone on your map – how will their role need to change? Share it.
- Line up investments and assessments on this initiative. How will upskilling be achieved and at what cost? Remember that short-term productivity loss may translate to long-term gains in improved retention and agility.
- Recycle, don’t discard talent. Once this becomes your demonstrated policy, you’ll see improved morale and lower turnover. You’re also likely to see increased interest from candidates.
- Employ DE&I tactics to ensure workers want to stay. Here are some of our tips.
Final Thoughts
Adopting a zero-waste mindset for your current workforce makes sense ethically, logistically and financially. A study by the World Economic Forum found that closing the skills gap by upskilling employees could add $6.5 trillion to the global GDP and create 5.3 million net new jobs by 2030.
We all know the facts: a current talent shortage in virtually every industry and a harsh demographic reality (fewer people are entering the workforce as the baby boomers retire). It is easy to get “progress paralysis” and spin your wheels on creating an end-to-end plan to address reskilling your workforce.
However, a complete plan does not really exist, as technology and sustainability standards will continue to change even as we work to adapt to the current state. Guess what? This means that no one has all the answers—and it is okay that you don’t either. What IS critical is rapidly obtaining knowledge to move forward, making a plan, and taking AT LEAST the first step into putting it into action. This is the current mountain to climb, sitting squarely on the horizon of nearly every employer.
Are you ready to begin the climb to workforce sustainability? The Manpower MyPath® program helps progress our associates from one role to the next, from declining industries to growth sectors. Discover how we can help close your skills gap while engaging your workforce in the process.
