Understanding the Skills Gap
The skills gap refers to the disparity between the skills that employers need and the skills that job seekers possess. In the Fall 2024 Job Insights survey by The Harris Poll commissioned by Express, 32% of companies in the U.S. and Canada have open positions they can’t fill. Among the reasons for the unfilled openings, the lack of hard skills (38% U.S./44% Canada) and a lack soft skills (33% U.S./ 32% Canada) topped the list.
How Businesses Are Addressing the Skills Gap
To bridge the skills gap, businesses are adopting various strategies to attract and retain qualified candidates. Here are some of the key approaches:
1. Skills-Based Hiring
Many companies are shifting their focus from traditional degree requirements to skills-based hiring. This approach allows businesses to tap into a broader talent pool and find candidates who possess the necessary skills, even if they lack formal education.
2. On-the-Job Training
Recognizing the importance of continuous learning, businesses are investing in on-the-job training programs to help new hires develop the skills they need. While some companies prefer to wait for candidates who meet all the requirements, others are willing to provide training to close any skills gaps. Express Employment Professionals offers associates the opportunity to upskill at no cost through programs like ExpressLearn and Workplace Pro.
3. Leveraging Technology
Generative AI and automation are playing a crucial role in addressing the skills gap. Many companies are adopting AI to enhance their hiring processes, from analyzing resumes to identifying potential candidates. This technology helps streamline recruitment efforts and ensures that businesses can find the right talent more efficiently.
4. Flexible Hiring Practices
To attract a diverse range of candidates, businesses are offering more flexible hiring practices. This includes considering candidates with non-traditional backgrounds, such as vocational/career tech graduates and legal immigrant workers. By broadening their hiring criteria, companies can find candidates who bring unique skills and perspectives to the table. This strategy can include incorporating hiring for micro credentials or micro degrees to shorten the time and investment required for building work-ready skills.
5. Emphasizing Soft Skills
Given the importance of soft skills, businesses are placing greater emphasis on these attributes during the hiring process. Traits such as work ethic, communication, and teamwork are highly valued, and companies are willing to invest in training to develop these skills in their employees.