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Skills obsolescence: how to avoid and anticipate it in 2023?

  • The employees most affected by skills obsolescence are senior citizens (31% of 50-55 year-olds are concerned by the problem, compared with 21% of 30-39 year-olds, according to a CEDEFOP survey), the least qualified (33% of those with low qualifications are affected, compared with 19% of those with high qualifications) and workers who do not benefit from continuing training (34%, compared with 22% of those who do).
  • The OECD points out that the lifespan of a technical skill has fallen from 30 years in 1987 to 2 years today, an inevitable consequence of technological progress.
  • 85% of the jobs of 2030 don't yet exist? Another frightening statistic: in a study conducted for Fujitsu by consultant Pierre Audoin, 88% of respondents believe that by 2025, the rise of artificial intelligence will be one of the three factors shaping the world of work.
  • In 2017, Mckinsey stated that 50% of professions could already be automated. What's more, up to a third of all activities could be replaced by 2030, forcing 75 to 375 million workers to change fields.
  • the lifespan of a technical skill is now only 12 to 18 months, and this average drops drastically in the digital professions (to just over 3 months).
  • The workers who suffer most are older people (31% of 50-55 year-olds), the least qualified (33%) and those who do not take part in continuing training (34%).
  • 33% of French working people will be retired by 2030: Source: Conseil d'orientation des retraites projection, 2019
  • CEDEFOP(European Centre for Vocational Training and Development) refers to four types of skills obsolescence:

Skills obsolescence: introduction

Anticipating skills obsolescence has become an unavoidable necessity in today's world of work. According to a study by the Institute for the Future (IFTF), it is estimated that 85% of the jobs that will exist in 2030 have not yet been created. At the same time, Mckinsey predicts that between 75 and 375 million workers could be forced to change fields by 2030, due to the rapid evolution of the skills required. Faced with these significant changes, understanding how to anticipate and manage skills obsolescence is more crucial than ever.

Understanding skills obsolescence

A. Definition of Skills Obsolescence

Skill obsolescence, as defined by Kaufman in 1974, refers to the inadequacy of up-to-date knowledge or skills required by a worker to continue to perform perfectly in his or her current or future professional activity. This notion highlights the gap that can exist between the skills held by an individual and those required by his or her job or sector of activity. This gap is often accentuated by the rapid evolution of technologies and working methods.

B. Profiles most affected by skills obsolescence

It should be stressed that skills obsolescence does not affect all workers in the same way. According to a CEDEFOP survey, the employees most affected by skills obsolescence are senior citizens (31% of 50-55 year-olds are concerned by the problem), the least qualified (33% of those with low qualifications are affected, compared with 19% of those with high qualifications), and workers who do not benefit from continuing training (34% are affected, compared with 22% for those who do).

C. Skill obsolescence categories

It is also important to distinguish between the different types of skills obsolescence:

Physical obsolescence of skills: This category refers to the deterioration of physical or cognitive skills due to atrophy or wear and tear. For example, a worker may lose certain manual skills with age or through illness.

Economic obsolescence of skills: This occurs when certain skills, although still present, are no longer useful or have lost their importance in a given job. This type of obsolescence is particularly common in fast-moving sectors such as digital technology and robotics.

Organizational oversight: According to CEDEFOP, organizational oversight occurs when a company loses specific skills through staff turnover.

Perspectivist obsolescence: This refers to outdated perceptions and beliefs about work and the work environment.

These different types of obsolescence illustrate the complexity of the phenomenon and the diversity of factors that can contribute to skills obsolescence.

Skills obsolescence

Why anticipate tomorrow's skills needs?

Skills obsolescence has a direct impact on the performance of individuals and organizations. With the rapidly changing world of work, certain skills can quickly become obsolete. For example, according to the OECD, the lifespan of a technical skill has dropped from 30 years in 1987 to 2 years today. This phenomenon of obsolescence can hamper productivity, competitiveness and even the long-term survival of companies.

On the other hand, this rapid evolution in skill requirements can pose a threat to workers' employability. Indeed, McKinsey predicts that between 75 and 375 million workers could be forced to change fields by 2030, due to the rapid evolution of skill requirements.

Faced with these challenges, it is crucial to anticipate tomorrow's skills needs. This anticipation enables workers to remain employable, companies to remain competitive and economies to remain dynamic. It is also a prerequisite for coping with the challenges of the future.

The challenges of effective skills management

Skills management is an essential component of an organization's competitiveness and long-term viability. In this context, two elements are particularly important:

  1. Keep the company's skills inventory up to date: By identifying and regularly monitoring the skills available within the company, organizations can adapt to changes in the environment and anticipate the risks of skills obsolescence. This skills inventory is also essential for planning and implementing the necessary training actions.
  2. Supporting skills pathways: Skills management involves more than simply identifying skills. It is also essential to accompany workers in the development of their skills, whether through training, coaching, mentoring or other forms of support. This support contributes not only to the employability of workers, but also to the competitiveness and sustainability of the company.

How to overcome skills loss

A. The Skills Transfer Plan

Given the rapid obsolescence of skills, a skills transfer plan is essential.

Anticipating and managing skills obsolescence requires a well-structured, clear strategy that identifies critical positions where a loss of knowledge could be a major issue for the company. At the heart of this strategy is the skills transfer plan.

  • Identify critical positions: Identify critical positions where a loss of knowledge could represent a major risk for your organization. This is the first step towards developing an effective skills transfer plan.
  • Defining skills transfer objectives and strategies: Once critical positions have been identified, it is essential to clearly define your skills transfer objectives. These objectives must include skills mapping, risk management, minimizing lost productivity and managing labor scarcity.
  • Promoting a culture of training and knowledge sharing: For skills transfer to be effective, it is necessary to develop and encourage a culture of continuous training and knowledge sharing. Techniques such as mentoring, sponsorship and coaching can be used to encourage knowledge sharing.
  • Investing in the right technologies and resources: Using the right technologies and investing in the right resources (such as virtual platforms, books and communities of practice) are essential to facilitating skills transfer.
  • Recognizing efforts and supporting skills transfer initiatives: It's important to recognize successes and encourage managers to actively support skills transfer initiatives.
  • Valuing commitment and motivation: Implementing a culture of recognition can stimulate employee commitment and motivation, two fundamental elements in the fight against skills obsolescence.

B. Developing soft skills

Soft skills play a central role in maintaining the employability and adaptability of employees. While it's important to stay at the cutting edge of new technologies, certain skills, such as creativity, critical thinking and the ability to work in a team, are irreplaceable and inimitable by robots.

By cultivating these human and interpersonal skills, employees are able to maintain their competitive edge, learn continuously and adapt nimbly to any future changes. They are also better able to take charge of their own employability, which is crucial in a constantly changing business environment.

The company's role in this dynamic is crucial. On the one hand, it must support employees to enable them to develop these soft skills strategically, in line with their role within the company. On the other hand, it must create an environment conducive to the expression of these skills, based on benevolence and mutual respect.

Soft skills do not operate in isolation, but interact with each other, giving rise to what is known as collective intelligence. By instilling a culture of benevolence, the company can foster harmony within its teams and thus optimize the potential of each individual. This holistic approach prevents skills obsolescence and prepares the company for future challenges.

C. Use of dedicated Skills Management software

In an increasingly complex and ever-changing world of work, HR software solutions are indispensable. Among them, Mercateam stands out for its know-how-centric approach. This platform offers effective tools for managing and identifying key skills, authorizations, restrictions and all relevant information for each employee.

Mercateam contributes not only to increasing the agility and versatility of teams, but also to improving their overall performance. In the long term, Mercateam helps to steer the company's know-how and prepare employees for the jobs of tomorrow.

What's more, thanks to the notifications and alerts provided by this intelligent solution, Mercateam makes it possible to anticipate critical loss of know-how. By meeting the requirements of the French Labor Code, it offers invaluable support for any organization wishing to remain compliant while optimizing its skills.

Faced with the accelerating obsolescence of skills, the adoption of HR software solutions like Mercateam is essential for any organization wishing to manage its skills effectively and anticipate future needs.

D. The Importance of Mentoring, Sponsoring and Coaching

Last but not least, mentoring, sponsorship and coaching are powerful methods for promoting skills transfer and continuous learning. They encourage a culture of knowledge and training sharing, which is essential to prevent skills obsolescence. In addition to supporting professional development, these approaches help to strengthen employee commitment and motivation, key factors in the company's long-term viability.

Anticipating skills obsolescence is vital if companies are to remain competitive in the digital age. Through proactive management, investment in ongoing training and the enhancement of soft skills, companies can turn this challenge into an opportunity. To this end, tools like Mercateam are invaluable allies in successfully navigating this ever-changing landscape.

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