Business Intelligence: Mind the Global Skills Gap

A global talent imbalance is producing a skills gap that threatens economic growth around the world. In response, business leaders are investing to develop their existing talent.

Global unemployment could hit 202 million this year as debt-driven austerity measures hammer job markets, according to the International Labour Organization’s “World of Work Report 2012.” Even so, many employers are finding it harder than ever to find workers with the right skills. This imbalance is producing a skills gap that threatens economic growth around the world.

Realizing they cannot hire their way out of the problem, business leaders understand that they must develop their existing talent. Based on Bersin & Associates’ “The Corporate Learning Factbook 2012: Benchmarks, Trends and Analysis of the U.S. Training Market,” last year many organizations tried to combat skills gaps in the labor market (Editor’s note: The author works for Bersin & Associates). After two years of spending cuts and a slight uptick in 2010, U.S. spending on employee development rose 9.5 percent last year to an average of $800 per learner (Figure 1). This increase is reflected in the number of hours spent on employee development in 2011, with learners averaging 15.3 hours — up from 12.8 hours in 2010.

Considering this growth, Bersin & Associates estimates U.S. corporate training groups spent $67 billion in 2011. These investments reflect corporations’ commitment to fill workfrorce skills gaps. The study found that U.S. training organizations are working to increase their programs’ value and reach. Across the board, from industry to industry, learning organizations are seeking ways to scale their training efforts and deliver more efficient and far-reaching results for every dollar spent.

Companies Invest in Social Tools and Headcount
According to the Bersin & Associates study, large business investment in social learning tools nearly doubled in 2011 to $40,000. Social learning is no longer an experiment. Companies increasingly use it to drive innovation in their learning organizations. By allowing employees to collaborate, share ideas and exchange information, organizations are empowering users to teach one another and are supporting conversations that naturally foster creativity and problem solving.