Fresh strategies for optimizing workforce development are revealed in this must-read analysis of system gaps and opportunities by experts O’Leary, Overley and Datar. Determine how to apply discussed coordination of career pathways, competency development and personalized assistance to upskill your workforce.
The authors provide a compelling case that today’s fragmented training landscape hinders talent and economic growth. By mapping systems’ deficiencies, roadblocks to opportunity become clear – along with solutions.
Readers gain insight into better engaging employers, coordinating funding streams and valuing competencies over credentials. Case studies demonstrate enhanced career pathways and customized support can boost skills, wages and productivity.
Change seems daunting but the report highlights bright spots of cross-sector partnerships innovating job placement, work-based learning and customized training. Its research and visioning empower leaders to strengthen workforce chains in their own communities.
This analysis inspires new economic thinking – and actions to close societal gaps. With willingness to re-examine traditional models, our talent ecosystem’s full potential can emerge.
Table of Contents
- Genres
- Recommendation
- Take-Aways
- Summary
- Enhancing collaboration within the workforce development ecosystem is essential to address skill gaps and foster economic growth.
- An effective workforce development ecosystem has three main characteristics.
- Foster a thriving workforce development ecosystem with five strategies.
- About the Authors
Genres
Business, management, organizational development, human resources, talent development, vocational education, skills training, leadership, economics, public policy
Recommendation
Programs aimed at helping individual workers upskill can’t, in and of themselves, bridge America’s yawning skills gap. A collaborative workforce development ecosystem is necessary to meet employer and worker needs. Deloitte researchers John O’Leary, Nicole Overley and Amrita Datar unpack how, by working in sync, critical players in workforce development – from educators to employers – can reshape the labor market and boost the economy. They lay out the “ABCs” or central characteristics of a healthy workforce development ecosystem, then offer five strategies for fostering this ecosystem.
Take-Aways
- Enhancing collaboration within the workforce development ecosystem is essential to address skill gaps and foster economic growth.
- An effective workforce development ecosystem has three main characteristics.
- Foster a thriving workforce development ecosystem with five strategies.
Summary
Enhancing collaboration within the workforce development ecosystem is essential to address skill gaps and foster economic growth.
Today, nearly 75% of employers report having trouble finding the skilled workforce they need to accomplish their goals and succeed. Workers aren’t doing much better: 46% of American employees are grappling with underemployment or a mismatch between their skills and roles.
Focusing primarily on individual upskilling programs will not solve these dilemmas. Policymakers should work to enhance collaboration between the various players within the dynamic workforce development ecosystem: educational institutions, employers, policy-makers, training providers and job seekers.
An effective workforce development ecosystem has three main characteristics.
People sometimes consider workforce development a “process”: a planned-out, repeatable system wherein all participants work together to achieve a shared, predetermined goal. True workforce development is more like an ecosystem: Diverse participants with a variety of goals engage in an ever-evolving “set of related activities” that can lead to a host of possible outcomes for those involved.
“The workforce development ecosystem can play a pivotal role in strengthening the skilled worker pipeline.”
A healthy workforce ecosystem has three main characteristics:
- “Adaptation” – The ecosystem must innovate and evolve in response to changing circumstances.
- “Biodiversity” – A diverse range of participants, including those with and without college degrees, should play various roles and be able to access what they need to thrive.
- “Connectedness” – Different participants in the ecosystem must interact and benefit from one another.
Foster a thriving workforce development ecosystem with five strategies.
Siloing is the prime factor hindering today’s workforce development ecosystem. Divides between educators, employers and policymakers lead to skill underutilization and a mismatch in labor needs, impeding economic growth. Breaking down divides within this ecosystem is crucial for building a skilled workforce but requires a shift in approach.
“It is important to align, if necessary, the incentives of participants to naturally promote more desired behaviors.”
To address the current workforce skill gap, decision-makers should employ these five strategies:
- “Connect ecosystem participants” – Enhance collaboration among employers, government programs, education and training providers, and communities. South Carolina’s Apprenticeship Carolina program incentivizes employers with tax credits to establish apprenticeships, thereby fostering collaboration between businesses, education providers and the government.
- “Focus on vulnerable populations” – Tailor workforce development programs to meet the unique needs of disadvantaged groups, recognizing diversity in career journeys and goals. Rhode Island’s Back to Work program provides targeted skills training and support to displaced workers, guiding them into growing sectors like health care and IT.
- “Model behavior as an employer” – State and local governments can lead by example, investing in training, offering flexible schedules and making hiring practices more inclusive. Pennsylvania has eliminated degree requirements for many state jobs, opening employment opportunities to a broader range of candidates.
- “Adopt policies that promote workforce development” – Implement policy tools, like certification and credential programs, that encourage participation from traditionally overlooked populations in the workforce. The Universal License Recognition (ULR) across various states simplifies occupational licensing, enabling skilled workers to transfer their qualifications between states easily.
- “Measure, monitor and anticipate ecosystem gaps” – Continuously gather data on the evolving workforce ecosystem to anticipate future skill gaps and challenges, using AI and data systems to inform decisions. The Markle Foundation’s Skillful initiatives in Colorado and Indiana collaborate with businesses and governments to inform job seekers about in-demand skills and connect them to relevant training.
About the Authors
John O’Leary is a senior manager with Deloitte Services LP, Nicole Overley is a senior manager with Deloitte Consulting’s Human Capital practice and Amrita Datar is a research manager at the Center for Government Insights.
Read the full article here: Rethinking the workforce development ecosystem: Grow the economy by bridging the skills gap