Confronting sizable skills gaps, companies have stopped waiting for higher education to meet their rapidly shifting competitive needs.
Employers are confronting sizable skills gaps in all parts of their operations, at all levels, and they can’t seem to fill them by simply hiring new people. In today’s tight labor market, there are about 7 million open jobs for which companies are struggling to find qualified candidates because applicants routinely lack the digital and soft skills required to succeed. In the face of rapid technological changes like automation and artificial intelligence, helping employees keep pace is challenging. And companies are wrestling with how to retain top talent — a critical differentiator in a hypercompetitive environment. No wonder a staggering 77% of chief executives report that a scarcity of people with key skills is the biggest threat to their businesses, according to PwC’s 2017 CEO survey.
As a result, companies can no longer afford to wait for the traditional “system” to supply the workers they hope will help shape their future — the need is too acute and too urgent, particularly given that many higher-education institutions remain in denial. We must change how we educate both traditional college-age students and adult learners.
Last year, when 4,500 people gathered at the ASU GSV Summit in San Diego to discuss innovation both in education and in talent development writ large, it was clear that the companies in attendance were eager to find alternative paths. At this conference, political leaders and policymakers join CEOs and VCs to discuss the imperative of investing in human capital. Entrepreneurs in attendance work fervently to sell their wares or make deals, the likes of which have fueled a sharp increase in global mergers and acquisitions of education and talent development companies, up in total value from $4 billion in 2008 to $40 billion in 2018.1 Executives from leading companies like Apple, Google, Facebook, Workday, and Salesforce.com attend to share ideas and learn about new ways forward.
The annual event provides a regular check-in on the state of corporate learning. In part, it’s meant to coax companies to focus their efforts, because there’s still a fundamental mismatch between how much they say they want to strategically invest in their current and future employees and what they actually do.