According to the The New Skills Gap: Building Tomorrow’s Workforce Today report from the Achievers Workforce Institute (AWI), only one-fifth of employees believe their companies are effective in training and developing soft skills. This report is based on a survey of 3,800 employees and 1,400 HR leaders across the U.K., Australia, Canada, and the U.S. It explores critical workplace skills, training priorities, and the effectiveness of internal mobility programs—an emerging strategy to address talent shortages, enhance retention, and boost performance.
Key Findings
- Effectiveness of Internal Mobility Programs
Only 50% of HR leaders and 24% of employees find their internal mobility programs effective. Additionally, 51% of managers express concern about losing talent to different teams internally. - Employee Engagement
David Bator, Managing Director of AWI, noted that employees in organizations with excellent internal mobility programs are twice as likely to be productive, engaged, and loyal. “These initiatives unlock unparalleled competitive advantages,” he stated, emphasizing the need for companies to recruit from within their talent pools.
Evolving the Skills Matrix
The concept of “soft skills” has been around since the 1970s, but the global workforce has evolved significantly, necessitating an updated skills matrix. The future of internal mobility relies on training in three key skill categories:
- Technical Skills: Formally taught hard skills that require specific training (e.g., coding, surgery).
- Transferable Skills: A blend of formal and informal learning applicable across various roles (e.g., professional writing, project management).
- Essential Skills: Necessary soft skills learned informally on the job (e.g., communication, accountability).
HR and Managerial Gaps
AWI’s findings reveal a disconnect in identifying and training transferable skills. While 60% of managers want to hire for these skills, only 18% feel confident in finding candidates with them. Additionally, 48% of HR leaders believe they can effectively upskill employees for essential skills, but only 20% of employees agree. Furthermore, only half of HR leaders can quickly identify current employees with high-priority skills.
To adapt, HR leaders must empower managers with tools to identify and transfer talent within the organization. Those who do will invigorate their workforces and maintain long-term success.
Utilizing Recognition to Enhance Skills Strategies
One often-overlooked essential skill is the ability to use recognition to foster positive behaviors. AWI research indicates that employees who receive monthly recognition from their managers report twice the productivity and engagement compared to those recognized less frequently. However, 66% of HR leaders do not prioritize positive reinforcement as a top skill for effective managers, which may contribute to the fact that less than one-third of employees feel recognized.
Moreover, only a third of HR leaders utilize data from recognition platforms to track skills, missing an opportunity to enhance their ability to identify high-priority skills by 38%.
“HR leaders must create a strong connection between skills identification and employee appreciation strategies,” advised Hannah Yardley, Chief People and Culture Officer at Achievers. “An employee’s recognition history is a vital performance indicator. By analyzing trends across daily tools like recognition, HRIS, and L&D platforms, HR leaders can pinpoint where employees excel and align them with teams where they can thrive.”
