How Amazon’s New Initiative Is Closing The Skills Gap
A new Korn Ferry study finds that by 2030, there will be a global human talent shortage of more than 85 million people resulting in about $8.5 trillion in potentially lost annual revenues. Yannick Binvel, president of Korn Ferry's Global Industrial Markets practice, says, "Governments and organizations must make talent strategy a key priority and take steps now to educate, train, and upskill their existing workforces."
According to Mercer, skill gaps can be addressed through the following:
Targeting learning through tailored upskilling or reskilling for identified skill gaps.
Rewarding skill acquisition by compensating employees who complete courses or certifications.
Facilitating experiential learning using rotations, short-term projects, and internal gigs.
Buying skills by hiring new talent with the required skills and/or experience.
Acquiring skills via an acquisition or merger.
Mercer has also found that the pandemic caused many companies to reskill. On average, organizations worldwide invested over US$2,800 per learner in reskilling last year, up 50% from 2020. Yet, H.R. and risk managers rank skills obsolescence as a top-10 risk.
In the next ten years, occupations in the tech industry are projected to grow at twice the national average rate, so creating new pathways for entry is a must.
In partnership with Springboard for Business, Amazon is addressing the labor market and skills gap through customized programs that provide upskilling and reskilling to drive business impact through contextualized and company-specific learning.
Compared to last year, fewer employees say their companies offer relevant training, and seventy-six percent of the global population are not ready to work in a digital-first world. According to the NTUC Learning Hub's State of Workplace Learning (SWL) Report, the main reasons for employees' views toward training relevancy include boring and conventional approaches towards training (31%) and a limited range of topics covered (23%). Despite the upward trend around burnout awareness, only 25% say organizations prioritize manager training focused on work-life balance and well-being.
As a Career Pathways Provider for Amazon Career Choice, Springboard will provide tailored programs to train hourly Amazon employees to transition into high-growth, in-demand careers in data analytics and software engineering. In 2022, Amazon enhanced Career Choice program eligibility in the U.S. by making it available to full-time and part-time employees after 90 days of continuous employment. Eligible Amazon employees throughout the U.S. will be able to enroll with Springboard beginning in November, with programs starting early next year.
The Data Analytics and Software Engineering programs don't require prior experience or college degrees. Amazon applicants will complete an analytical and critical thinking skills assessment, followed by a consultative admissions interview with a Springboard admissions advisor. Springboard also uses a proprietary data science model to identify when students may begin to fall behind, triggering proactive outreach from their student advisor and their own industry mentor to provide timely personalized support. Gautam Tambay, CEO and co-founder of Springboard, says, "I'm excited to be a part of a progressive shift towards a workplace focused on employees and their goals." Former Springboard graduates have landed jobs with employers like Google, Meta, and Salesforce.
Statista states the corporate learning and employee development market is $357 billion. According to McKinsey, a lack of career development and advancement is the number one reason employees quit their jobs from April 2021 – April 2022. Closing the skills gaps, employee retention, and well-being are all urgent priorities. But is your organization doing enough?
This article was first published on Forbes.com.