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O
rganizations around the world are experiencing disruptive change in the
demand for critical skills. Not only are specialized skills increasingly scarce,
but they are also unevenly distributed across the global economy.
As a result, companies are often looking in the wrong places when it comes to
building workforce capabilities—and coming up short. In fact, according to our
global survey, executives rank building workforce capability as one of the top three
challenges facing their organization over the next 18 months.
This trend helps explain the “talent paradox” that has emerged in recent years: High
unemployment rates point to a surplus of labor, yet companies report great difficulty
finding and keeping the skills most important for their growth.”
The global competition for skills is even tougher in fast-growing new business areas.
The supply of skills in software engineering, mobile computing, big data analytics,
life sciences, advanced manufacturing, and new energy technologies is struggling
to keep up with demand. Engineers, life scientists, statisticians, geophysicists, and
others with technical skills are in short supply.
At the same time, these skills are in demand over a broader range of industries. Auto
manufacturers now compete with Silicon Valley for software talent; retailers battle
manufacturers for IT skills; and large pharmaceutical companies recruit against fast-
growing startups for life scientists.
Moreover, the capabilities gap is actually far broader than a lack of engineers and
scientists. In addition to the need for technical skills, companies are also facing
shortages in first-line supervisors throughout sales, customer service, manufacturing,
finance, and other business functions. Retailers, hospitality companies, software
firms, and all manner of service providers need people who understand how to sell,
communicate, serve customers, and solve problems.
The expected shortage of 38 to 40 million college-educated workers by 2020 further
fuels this challenge.
1
Deep capabilities drive performance—
and take years to build
One of the ways to assess a company’s competitiveness is to understand its talent
and workforce capabilities.
2
Companies that can attract, retain, and develop deep,
specialized technical skills are generally well positioned to outperform their peers—in
nearly every industry.
Apple and Samsung succeed by attracting leading skills in engineering, innovation,
and marketing. Amazon drives performance by constantly building its capabilities to
leverage technology, the user experience, and data. Google has become a market
leader by turning itself into a destination employer for talented people with scarce
innovation, technology, and business model skills.
By Josh Bersin, Jen Stempel and Bernard van derVyver
The Quest for
Workforce Capability
