Upskilling for the digital world has to be part of an organisation’s ecosystem, says Claudine Attard.

The world is going through a technological revolution and this is leading to increasing disparity, disrupting jobs and businesses, and threatening the stability of our institutions.

Automation, primarily in the form of robotics and artificial intelligence, brings with it the promise of improved productivity and higher profits – but at what cost to employment and, by extension, to society? What responsibility do organisations have to upskill employees who otherwise would be displaced by technology? And what value does upskilling offer an organisation?

PwC’s research shows that one in three jobs is likely to be severely disrupted or to disappear in the next decade because of technological change. This could affect almost half of all low-skilled jobs and a third of semi-skilled jobs.

The World Economic Forum estimates that it will cost $24,000 per head to upskill displaced US workers, but when set against the alternatives – severance payments for workers who are let go and the cost of finding new workers with in-demand skills, amongst other things – upskilling is the more attractive option.

Skills mismatches have a direct impact on a nation’s GDP, tax revenues and social safety net bill. Organisations are less productive, and trade generates less tax. This is why upskilling programmes are being explored by governments as well as corporations.

The Luxembourg Digital Skills Bridge, which provides technical and financial assistance to upskill employees in companies facing disruption, is a good example of a highly targeted approach. Similarly, a handful of corporations have made significant investments in educational initiatives in their communities. For instance, PwC network has just embarked on its new programme ‘New world. New skills’ whereby over the next four years it is upskilling each of its 276,000 people, but the commitment is much broader – reaching other workers, those currently excluded from the workforce, and the next generation. This will be done by investing $3bn in upskilling – primarily in training employees, and also in developing and sharing technologies to support clients and communities. So far, these are isolated examples. Any sustainable approach to upskilling will need broader engagement and collaboration between the private and public sectors.

One in three jobs is likely to be severely disrupted or to disappear in the next decade because of technological change

Business strategies must not only focus on the implications of digital transformations on their operations, but must also have a rigorous people strategy. This is to ensure that upskilling is embedded in the corporate culture throughout this new era of work. Business leaders must work closely with HR leaders to ensure that the organisation’s people are well positioned to cope with what lies ahead.

Upskilling for the digital world does not start and end with training – it has to be part of an ecosystem which incorporates the following activities.

PwC’s Future of the Workforce framework

First, an organisation needs to set its business strategy which defines what it’s going to look like in the future and what technological advancements it will adopt. It then needs to identify what is the impact of business strategy on its organisational capabilities and skills required. It needs to break down jobs into tasks, and assess which tasks can be automated, which existing tasks will remain delivered by people and which new tasks will need to be carried out by people. Those activities that will need to be delivered by people will then need to be regrouped together into new jobs. This will influence the workforce strategy which defines what type of and how many employees organisations will need and with what skills.

It’s also important to consider the workforce experience and performance to be able to unleash greater employee productivity and increase employee attraction and engagement, and ultimately drive better performance.

The physical and digital workplace also need to be aligned to the strategy so that organisations can optimise worker performance through physical and virtual working and optimise the use of digital technologies to aid collaboration and reduce costs.

A key component will then be action planning and development of a roadmap to determine how to deliver on the workforce plan, work environment, and talent strategy. This should determine what upskilling people need and the learning journeys they need to embark on. The roadmap should also determine what change management is required as this will be key to changing the mindset within the organisation.

Next will be the implementation of the upskilling strategy which needs to be specific to the organisation and its people. It’s not just on upskilling on technology, but also on human skills. This will also require support for employees through real-time coaching and feedback. Upskilling isn’t just about completing courses or adding new tools; it’s also about giving people opportunities to explore new mind-sets, behaviours, relationships, and ways of working.

An essential component of the upskilling journey needs to be measurement and monitoring so organisations can determine whether its workforce strategy is effective.

Organisations that understand and act on these workforce changes now will not only have the skills but also the organisational motivation, innovation and adaptability to thrive. The strategic agenda must include significant investment in the potential of the organisation’s people to secure its future in the 21st century. Organisations can’t protect jobs that are made redundant by technology – but they do have a responsibility to their people to prepare them for the future. These are business issues that demand vision and leadership from the top. HR has a critical role to play here and therefore needs to transform to take on this challenge.

Claudine Attard is senior manager, People and Organisation Consulting, PwC Malta and is a board member of the Foundation for Human Resources Development (FHRD).