Multiethnic group of women learning computer programming

Why companies must sharpen the focus on skills development

Authors

  • Samir Bedi

    Singapore Government & Public Sector Leader, Ernst & Young Advisory Pte. Ltd.; EY Asean People Consulting Leader

  • Jia Yong Goh

    Partner, People Consulting, Ernst & Young Advisory Pte. Ltd.

4 minute read 09 Feb 2022
Related topics
Workforce
CEO agenda
CHRO agenda

As digitalization continues to change jobs, employee skilling is more crucial than ever to build a sustainable talent pool for the future.

In brief

  • The pandemic has accelerated key trends such as digitalization, which is driving lasting changes across sectors and jobs.
  • This has heightened the need for employers to build a sustainable talent pool by reskilling and upskilling employees as a business imperative.
  • By doing so, companies can build capabilities for growth, support talent retention efforts and alleviate the labor crunch.

As the business landscape transforms — driven by digitalization and technological shifts — skills that were once highly relevant and well-regarded may soon be obsolete. This risk has not gone unnoticed by employees and employers. The 2021 EY Work Reimagined Employee Survey found that employees ranked online or virtual learning as their top learning and development focus. Concurrently, almost two-thirds (64%) of employers are looking to strengthen virtual learning.

Perhaps the pandemic has heightened concerns on long-term job security. To mitigate unemployment risks, individuals value the opportunity to continually upskill and reskill — and employers also see the need to address such learning demands.

The focus on skills is not new. Workforce upskilling and reskilling has been a national imperative in Singapore long before the pandemic. Back in 2008, the Continuing Education and Training Masterplan was launched to prepare Singaporean workers for the future and develop a source of competitive advantage for the nation. It was refreshed in 2014 to better ensure a competitive and career-resilient workforce.1

In 2015, lifelong learning was further underscored with the launch of SkillsFuture, a national movement that seeks to encourage Singaporeans to develop skills and maximize their potential. About 540,000 individuals and 14,000 enterprises benefited from SkillsFuture-supported initiatives in 2020. More than 188,000 Singaporeans also utilized their SkillsFuture credit in 2020, up from about 156,000 in 2019.2

Job transformation maps for various sectors’ professions — from financial services and logistics to the recent one for finance and accounting — have also been developed to help employers understand the impact of technology and automation on their industries and workforce as well as how workers must acquire new requisite skills given that existing job roles are evolving.

There has been consistent progress on this long-term journey of workforce transformation. What more can be done? 

How EY can help

Investing in employee experiences

Employer commitment to driving skills development as a business imperative is arguably needed more than ever. The pandemic has resulted in the acceleration of several trends, notably that of digitalization, which is driving lasting changes across many sectors. As the faces of industries and businesses morph, so will jobs and how jobs are done productively. Organizations looking to seize growth opportunities in the new normal will need a talent pool fit for the future and building capabilities through skilling will be key.

 

Understandably, there may be some employers that are hesitant to support employees in reskilling and upskilling. Beyond having to invest time and resources to provide employees with opportunities for training, some may be concerned that the new capabilities will enhance the employability of their people — and potentially make them attractive to competitors as well. When that happens, it’s a double-whammy blow to the organization.

 

However, what if employers reframe such a risk as an opportunity to win the hearts of their talent instead? By investing in the skilling of employees, companies not only build the needed capabilities for growth, but also foster better employee experiences with the organization. In the current volatile labor market characterized by the “great resignation” phenomenon, positive employee experiences can support talent retention efforts. Supporting employees in their skilling needs may well be the differentiating approach for employers to win the talent challenge.

 

In other cases, reskilling and upskilling employees could be a pragmatic approach to building a sustainable talent pool and alleviate the labor crunch caused by inbound talent scarcity given ongoing border restrictions.

Investing in employee skilling is not just a matter of building the needed capabilities for
growth. It also fosters better employee experiences with the company that can support
talent retention efforts.

Further empowering individuals

While employers have a key role to play, individuals also need to take charge of their skills development and employability. Enhancements to current programs that enable them to do so will be useful. For example, a national skills index can strengthen and complement the SkillsFuture program.

Citizens can visit myskillsfuture.gov.sg and mycareersfuture.gov.sg to search for courses relevant to upskilling and find and apply for appropriate open job roles respectively. The LifeSG app can be enhanced with a national skills index to allow individuals to log and take stock of their skills inventory, view their skills development and career pathways as well as identify suitable training opportunities that match their desired upskilling areas. This will allow them to better assess their skills needs and plan their learning.

Such data can be further harnessed for better planning within the national skills ecosystem — namely the government, employers, trade unions and training providers — to support the upskilling efforts of all citizens. After all, multiple stakeholders need to work hand in hand to meet Singapore’s workforce agenda and having such insights will be vital to sharpening the nation’s skills-based approach. 

This article was first published in The Business Times on 8 February 2022.


Summary

Changes in the business environment driven by digitalization and other key trends will transform jobs. Employers must therefore commit to driving employees’ skills development as a business imperative to not only build capabilities for growth, but also support talent retention efforts and alleviate the labor crunch.  

About this article

Authors

  • Samir Bedi
    Singapore Government & Public Sector Leader, Ernst & Young Advisory Pte. Ltd.; EY Asean People Consulting Leader
  • Jia Yong Goh
    Partner, People Consulting, Ernst & Young Advisory Pte. Ltd.
Related topics
Workforce
CEO agenda
CHRO agenda

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