6 minute read 10 Jun 2019
Cityscape by night with network overlay

How to understand the skills of the future

By Catherine Friday

EY Oceania Managing Partner, Government and Health Sciences; EY Global Education Leader

Improving how governments work and deliver services. Mustang owner. Keen horse rider. Average but enthusiastic skier.

6 minute read 10 Jun 2019
Related topics Consulting Technology Tax

Show resources

  • Future of Work 2019. Stop talking about the future of work (pdf)

The solution to the future skills dilemma is in mapping what the world will soon need.

The challenge we face around data is not that we don’t have it, but that we have too much and we are not collectively skilled in drawing insights out of it.

Industry groups, businesses and governments have an obligation to help people understand the realities of the future workplace and embrace the opportunities that it presents, including that technology won’t spell the death of all jobs.

A strong evidence-based framework will provide employers and workers with realistic scenarios for Australia and New Zealand’s future employment landscape to drive proactive responses at all levels. In the absence of empirical evidence, investment in learning is misdirected, and planning for workforce transition is difficult as employers draw data from multiple sources.

Yet solutions to these seemingly overwhelming problems can be deployed, as EY work with both the Minerals Council of Australia and SkillsFuture in Singapore shows.

We’re at a pivotal time as a society where the traditional model of education and working and retirement is fundamentally flawed for the future.
Peter Taylor
GM People Capability and Safety, New Zealand Post

A data-driven approach in the mining sector

Aiming to build a more globally competitive sector, the Minerals Council of Australia (MCA) worked with EY to create an interactive skills map that allows industry participants to identify the capabilities required by future roles.

The MCA work developed a Current Skills Snapshot formed from broad census data, broken down into industry-specific technical skills considered ‘important’ for each occupation in the sector.

An Innovation Study on the impacts of digital and technological innovation across the minerals industry value chain was also conducted.

In conjunction with the Current Skills Snapshot, mapping was used to predict the future composition of the workforce, allowing analysis of the most prevalent future skills in the industry along with those skills that are likely to both increase and decrease in demand in the future.

The research found that skills in demand include: system evaluation and analysis, mathematics, active listening, instructing, data analysis, data and digital literacy, and judgement and decision-making.

And that skills with declining demand include: vehicle operations, materials extraction, operations and control, equipment maintenance and blast-hole drilling.

An approach that could be applied nationally or by sector, this work has enabled the MCA to better understand the future skills required within their workforce, meaning industry stakeholders can now strategically plan for their future workforce and skills.

It also gives industry insights into addressing questions around what emerging technology can and cannot do, as well as how we look at not just content learning but soft skills learning. This type of analysis could also allow policymakers to adjust their settings using data-driven evidence.

Skills Map Snapshot created for the MCA
Most governments’ digital policy agendas are concentrated on creating economic value via technology. But societies are not only about economic performance. Currently, no government is fully focused on systemically addressing the important social, cultural, moral and ethical issues that emerge as a result of technology advancement.
Uschi Schreiber
EY Fellow for Digital Society and Innovation

Driving wages growth by reskilling Singapore’s workforce

Since 2015, Singapore has been mapping how jobs across all industries will change over a two-year horizon – with the information constantly refreshed to stay current.

This is the foundation for SkillsFuture5 that EY worked with the Singaporean government in developing. It is a national movement to provide Singaporeans with the opportunities to develop the right skills to succeed in the workforce.

Workers can plug their job into a digital portal on the SkillsFuture site to find out how that job will change in the next two years, what skills they will need to stay in that job, and the salary increase they can expect. They can then find relevant training, including professional conversion programs and skills upgrades, with people encouraged to “earn and learn”.

With every working age Singaporean given S$500 credit to spend on skills training, in 2018, the site received 7.6 million user visits.

Employers are now starting to co-fund learning through SkillsFuture to incentivise workers to learn future skills outside of work.

With success measured through productivity and wages growth uplift, SkillsFuture works by:
  • Helping individuals make well-informed choices in education, training and careers
  • Developing an integrated high-quality system of education and training that responds to constantly evolving needs
  • Promoting employer recognition and career development based on skills and mastery
  • Fostering a culture that supports and celebrates lifelong learning

Singapore is now looking to understand and assess the impact of new skills on unemployment and productivity to continually improve the effectiveness of SkillsFuture.

Time to stop talking and start doing

The work that EY has done with the MCA highlights the gap between the disruption many foresee, and what organisations and individuals understand about the issue.

Consequently, employers must tell people what’s really going on. But to do this they need a vision of the future, a coherent technology strategy for the whole organisation and a related people plan – with new structures, roles and reskilling opportunities – to support the change to digitalised operations.

As a vital first step, we need all key players to have a common grasp of the problem. That includes employers first understanding the issue, and second, understanding what they might do about it. Our research has shown a spectrum of understanding across employers, and differences in employer perception of readiness and employee experience.

In much the same way that public health campaigns respond to the current societal challenges and individual action, do we need a campaign that generates urgency and community change around skill development?

While government, employers and employees must take on the responsibility for developing and sustaining the necessary responses, federal governments need to play a cornerstone role.

Currently, Australian and New Zealand workers have to self-determine what skills will make them employable in the future. By contrast, the SkillsFuture approach in Singapore – as well as the MCA’s skills mapping work – offers a clear pathway to support employees in reskilling and upskilling.

To lead the change:
  • The Australian and New Zealand departments of education, jobs, business and productivity need to develop reporting, insights and guidance on how jobs will change and what skills are needed to be future-ready. This will form a one-stop shop for all workers, employers and educators who are seeking crucial, real-time information that is currently lacking.
  • Organisations need to work quickly to build the transition foundations they need to adapt to changing skills and roles. This requires focus on a learning culture, career pathways, skills planning, communication about the future and employee engagement with technology.
  • The education ecosystem (institutions, organisations, providers) needs to work together to offer agile, adaptable offerings so that continuous, on-demand and self-directed learning becomes the new normal.

Summary

Data is the key to understanding the working world of today and tomorrow. Governments, businesses and education providers need to come together to develop the insights necessary for building the capabilities that will drive the economic output and societal wellbeing of Australia and New Zealand.  

About this article

By Catherine Friday

EY Oceania Managing Partner, Government and Health Sciences; EY Global Education Leader

Improving how governments work and deliver services. Mustang owner. Keen horse rider. Average but enthusiastic skier.

Related topics Consulting Technology Tax