Shifting Skill Sets and Evolving Workforce Needs

It’s challenging to keep up with the frantic pace of change in the workplace, with so many new technologies, AI tools, and automation coming onto the scene. It seems like every day, there is a new start-up offering a solution to a problem you didn’t even realize you had. 

McKinsey reports that 90% of workplaces are undergoing digital transformation. It’s hard to imagine how the other 10% can be unaffected! 

Staying up to date with new tech is complicated enough without considering the human impact of constant change. Do employees have the skills required to flourish in this new age of work, and how are their needs being met?  

Here, we discuss shifting skill sets and evolving workforce needs in the context of technological change.

 

The Growing Skills Gap 

The most pressing challenge for all businesses, and more importantly for recruiters, is the widening skills gap. By 2030, it is predicted that over 85 million jobs may go unfilled due to a lack of qualified workers. This is not a distant problem, but a looming crisis that is particularly evident in sectors like technology, finance, and telecommunications. 

Rob Green, CEO of Rectec, highlights this dilemma, “There’s a massive skills gap right now. We’re seeing huge demand for technology roles, but not enough people with the right training or qualifications to fill them.” 

Everywhere you look, there is a significant shortage of hard skills, particularly in technology, data science, and cybersecurity. As industries embrace digital transformation, the demand for roles such as software developers, data analysts, and AI specialists has skyrocketed. 

Insufficient tech training and the speed at which tech tools and platforms are evolving have compounded the skills shortage. Fields like automation, machine learning (ML), and Artificial Intelligence (AI) require continuous upskilling, yet many workers struggle to keep pace. It is now imperative that companies retrain staff and grow their people’s roles and capabilities. 

Employees who are tech-savvy, fast learners, and curious (like Gen Zedders) will upskill faster, but companies must ensure that other valuable team members, perhaps those with less technical skills but more developed soft skills, don’t get left behind. 

 

The Importance of Soft Skills 

Businesses are not just missing hard skills. Soft skills such as communication, leadership, and emotional intelligence are increasingly critical. Kendra Cato argued, “We’re at a turning point where soft skills are just as vital as technical expertise in many roles.” 

Hard skills can be learned as technology evolves, while soft skills are more complex to teach. Soft skills are also often overlooked, but they are crucial for maintaining resilience and can be just as useful in fostering innovation in any industry. 

Communication, teamwork, problem-solving, critical thinking, creativity, adaptability, and conflict resolution all rely on soft skills. 

Evaluating soft skills helps recruiters identify candidates who can grow with a company, especially in a rapidly changing workplace where adaptability and teamwork are key.

 

The Role of AI and Automation in Recruitment 

Leveraging recruitment technology, such as applicant tracking systems (ATS), especially those that include video interviewing capabilities, can help recruiters more efficiently identify candidates with the right blend of technical and soft skills, speeding up the hiring process and improving the quality of hires. 

However, despite its benefits, AI should not replace the human element of recruitment. According to Kendra Cato, “We need to combine technology with personal engagement to differentiate ourselves and build strong connections with candidates and clients.” AI is a tool that enhances productivity, but recruiters still need to apply empathy, listening skills, and personal insight when engaging with candidates and matching them to roles. 

Tracker’s CEO, Andy Jones, also warns of complacency around AI and that with faith in automation high, there’s a risk that really important elements of traditional recruitment will get lost. ATS providers have a responsibility to ensure AI enriches the recruitment process, he said. 

Rob Green also highlighted how AI and automation can inadvertently ruin the results you want. Generating thousands of emails and sending them to the masses ignores the people element. Using the ‘spray and pray’ approach in recruitment won’t work and can inflict reputational damage. 

However, keeping people in the loop is where AI can add exceptional value. If a client or candidate gets no acknowledgement at all, that is poor from a technology and recruiting standpoint.

Upskilling and Reskilling 

As industries continue to evolve, upskilling and reskilling are essential. The rise of automation has already transformed many traditional jobs, with an explosion in roles such as data analysts, AI specialists, and automation engineers. However, there is a shortage of these skills in many businesses. 

According to global market intelligence firm IDC (International Data Corporation), the IT skills shortage is expected to impact nine out of ten organizations by 2026, costing $5.5 trillion in delays, quality issues, and revenue loss. 

For recruiters, this means identifying more candidates with potential for growth and partnering with businesses that invest in training their workforce. 

Andy Jones, emphasized the importance of supporting employees in their career development: “It’s not just about finding someone for today’s job but ensuring they are equipped for tomorrow’s challenges.” Recruitment software plays a vital role in this process by providing detailed insights into candidates’ qualifications and potential areas for development. 

Businesses should project what skills base they need two or three years from now and embrace skills-based learning within their organization. Recruiters can play a pivotal role in helping find talent capable of upskilling. 

Skills-based learning is getting a lot of attention and is a powerful solution to the talent deficit. One of the main reasons people leave jobs is a lack of career development and opportunities.

 

 

Skills-based Hiring 

The drought of technical workers is driving a shift towards skills-based hiring. Organizations are shifting their focus away from traditional qualifications to competencies needed for success. 

Rather than relying solely on degrees or years of experience, recruiters and HR teams are assessing candidates based on skills relevant to the role. This enables companies to tap into a broader talent pool, including those candidates who haven’t followed a formal educational pathway but have gained expertise on the job. 

Skills-based hiring, which focuses on an individual’s ability to perform the job, also promotes diversity and inclusion by reducing bias in the hiring process. 

Using innovative ATS tools, such as AI-driven candidate ranking, recruiters can efficiently identify candidates with the right skills for the role. 

 

Evolving Workforce Needs – Flexibility 

We’ve come a long way from the rigidity of nine to five. Flexibility in working hours, work locations, and operational times is now a key aspect of modern work culture. 

Offering adaptable work options helps employees improve their work-life balance, making it essential for attracting and retaining talent, especially those who aren’t inclined toward a traditional schedule.

While flexibility drives the gig economy, companies can’t simply rely on gig roles to navigate the talent shortage—they need permanent employees. Flexible arrangements may even encourage some gig workers to transition back into permanent roles.

 

Evolving Workforce Needs – Purpose 

There is a growing demand for purpose and inclusion. Modern workers, particularly Gen Z, but also Millennials, prioritize roles that align with their values, emphasizing sustainability, diversity, and meaningful work. Increasingly, candidates seek employers that foster inclusive environments and promote equity . 

Inclusion isn’t just about diversity in hiring—it involves creating workplaces where employees feel valued and can bring their authentic selves to work. 

Most importantly, employees today want a sense of purpose beyond financial compensation. They are attracted to organizations that contribute positively to society and offer personal and professional growth opportunities. 

Rob Green, highlights this point: “Companies that focus on purpose and inclusion are more likely to attract and retain top talent.” For recruiters, it’s crucial to showcase how employers are meeting these evolving expectations to remain competitive and engage and attract future-ready candidates. 

 

Predictive Analytics and the Future of Recruitment 

Predictive analytics is emerging as a powerful tool for shaping recruitment strategies. With the ability to analyze past data and forecast future trends, recruiters can make more informed decisions about where to focus their efforts. 

Predictive analytics allows recruitment teams to anticipate workforce needs, spot potential skills gaps, and proactively address challenges before they arise. In this capacity, staffing firms can provide a useful consultancy service for clients. 

By integrating data insights into their recruitment strategies, businesses can streamline hiring processes and ensure they align talent needs with long-term business goals. 

 

Conclusion 

As the workforce evolves, recruiters must adapt to shifting skill requirements, including the need for soft skills, hard-to-find technical expertise, and an emphasis on purpose and inclusion. 

The need for upskilling, predictive analytics, and flexible work options continues to grow. For tech transformations to be successful, organizations must adopt talent management practices that develop and retain talent while simultaneously finding new talent to meet future challenges. Skills-based hiring is helping to bridge the talent gap. 

Tracker’s recruitment tools, such as automation, video interviewing, and AI-driven candidate ranking, enable recruiters to streamline processes, reduce administrative burdens, evaluate soft skills more easily, focus on building relationships with top talent, and unearth transferable skills. 

Get in touch today to see how Tracker can help you fill the skills gaps.