 "Businesses must invest in reskilling employees")
Talent, not capital, will be the key factor linking innovation, competitiveness and growth in the 21st century, and better data and metrics are critical for this, says the latest edition of the World Economic Forum's Human Capital Report 2015. According to the report, today's education systems are disconnected from the skills needed to function in labour markets. The exponential rate of technological and economic change is increasing the gap between education and labour markets. The premise of current education systems is on developing cognitive skills, yet behavioural and non-cognitive skills that nurture an individual's capacity to collaborate, innovate, self-direct and problem-solve are increasingly important.
The report also says current education systems are time-compressed in a way that may not be suited to future labour markets. They force narrow career and expertise decisions in early youth. The lines between academia and the labour market may need to blur or disappear entirely as learning, R&D, knowledge-sharing, retraining and innovation take place simultaneously throughout the work life cycle, regardless of the job, level or industry.
Highlighting the importance of reskilling, the report says businesses must rethink their role as a consumer of 'ready-made' human capital. Some companies are already investing in continuous learning, reskilling and upskilling of their employees, but most employers still expect to obtain pre-trained talent from schools and universities. Instead, businesses must work with educators and governments to help education systems keep up with the needs of the labour market.
The report also says current education systems are time-compressed in a way that may not be suited to future labour markets. They force narrow career and expertise decisions in early youth. The lines between academia and the labour market may need to blur or disappear entirely as learning, R&D, knowledge-sharing, retraining and innovation take place simultaneously throughout the work life cycle, regardless of the job, level or industry.
Highlighting the importance of reskilling, the report says businesses must rethink their role as a consumer of 'ready-made' human capital. Some companies are already investing in continuous learning, reskilling and upskilling of their employees, but most employers still expect to obtain pre-trained talent from schools and universities. Instead, businesses must work with educators and governments to help education systems keep up with the needs of the labour market.