
Today’s growing talent shortages means it’s crucial that companies understand the skills and abilities of their employees.
by Jillian Klein
March 8, 2023
Call it a tale of two labor markets. Recent headlines have been dominated by tech companies laying-off highly compensated, white-collar professionals as they grapple with the effects of inflation. At the same time, other industries have numerous job vacancies.
Throughout the COVID-19 pandemic, employers experienced a mass exodus from the workforce, whose repercussions continue to present them with many challenges. In fact, the U.S. Bureau of Labor Statistics reports that 4.5 million workers voluntarily quit their jobs in March of 2022 alone. This Great Resignation has made it challenging for some companies to find qualified employees, and according to the U.S. Bureau of Labor Statistics, the unemployment rate in December 2022 was 3.5 percent, which may make recruitment more difficult. Talent gaps also exist internally within companies, and only 27 percent of employees worldwide feel very equipped with resources to learn the digital skills needed in today’s workplace.
Companies are being affected by a “training treadmill,” in which an increased focus on hiring and training for positions vacated due to turnover is reducing the amount of time and energy available for focusing on productivity. Meanwhile, many companies are worrying about a potential recession, as their executives brace for scrutiny of all budgets, including their learning and development budgets.
It’s arguably more important than ever that internal L&D initiatives produce hard data to show a demonstrable return on investment — that proves, in other words, that skills can be measured in terms of what new employees bring with them and then what they learn on the job. But how can organizations be certain that skills-based education and training in the workplace is effective today and over the long haul?
Corporate trainers might be able to draw inspiration from the world of postsecondary education, where instructors and administrators have been working to perfect competency-based education. This data-driven learning practice offers multiple lessons for corporate trainers seeking a roadmap for successful skills-based practices.
CBE uses professionally aligned assessments — which can take a variety of forms — to measure the learner’s skill set. Once learners demonstrate via testing their competence in a verified skill or curriculum standard, they can progress through course material at a pace that makes sense for them. Through the painstaking process of mapping professionally relevant competencies to course content, colleges can use these assessments to gather data that gives them an understanding of how well learners are mastering specific topics.
When companies and organizations recognize and build upon the current skill sets of their employees, they can offer L&D opportunities that are more efficient and more relevant. They can help their employees develop new skills rather than review lessons learned long ago. Companies don’t have time to waste and neither do their employees.
Corporate trainers are leveraging their own short-form assessments to measure skills and track how quickly employees are learning new ones. Indeed, a growing number of companies are looking beyond traditional hiring and development methods, and turning to pre-hire and on-the-job assessments to better understand their employees. Companies like Catalyte are using online tools to assess individual skills to identify, train and develop non-traditional talent to tech careers.
A 2021 American Institutes for Research report highlighted case studies of 10 employers, including IBM, Comcast and the U.S. Office of Management and Budget, that had integrated skills-based practices into employee development. Companies that had succeeded in this space had followed the same basic blueprint: They identified and defined necessary skills, measured skills, incorporated skills validation and tracking into existing HR infrastructure, and identified the benefits and outcomes of this work. The data collected allowed these organizations to gain an accurate picture of the current capabilities and future readiness of their workforces.
While implementing flexible CBE programs over the years, we have learned they can provide another side benefit: It helps us understand where learners need support. By combining CBE’s personalized learning programs with success coaching, academic advising and competency mapping, students can track their progress and understand how their learning aligns with career fields they’re seeking to break into.
Corporate trainers should consider supplementing skills-based practices with digital tools to track learning progress, provide internal road maps for career advancement and conduct 360 reviews where employees are assessed by their managers, peers and direct reports. By making these resources easily accessible, organizations can help employees prepare for their next project and their next company role.
Finally, a shift to measuring skills and competencies has helped to break down barriers to diversity, equity and inclusion in higher education. Because CBE offers flexible pathways to educational advancement, it has been one tool to improve access for nontraditional learners.
With greater transparency around skills and competencies in the workplace, career opportunities may increase for a broader range of students and workers. Adult learners, veterans, career changers and those from historically excluded backgrounds who might have unfairly been overlooked in the past now have the means to demonstrate to potential employers what they know and can do.
When it comes to using data to assess skills, the competency-based learning models developed in postsecondary education offer numerous insights for companies that seek to better understand the impact of their training investments. Today’s growing talent shortages means it’s crucial that companies understand the skills and abilities of their employees. Lessons learned from CBE can provide corporate L&D leaders a much-needed framework for what works.