Drop off your CV
We'd love to hear from you. Send us your CV and one of our specialist consultants will be in touch.
Skills Gaps in Evolving Industries: Challenges and Solutions
29 Jul, 20265 Minutes
The demand for specialised talent is growing across rapidly evolving industries, particularly as technological advances, new regulatory requirements and changing business models create demand for skills that are not always readily available in the existing workforce.
A skills gap occurs when a business cannot find enough people with the skills, experience or technical expertise needed to meet its current or future requirements. According to Springboard, 38% of leaders believe skills gaps in their business have worsened over the last year, highlighting the scale of the challenge across a range of industries.
This article explores the causes of skills gaps and the strategies businesses can use to attract, develop and retain the talent they need, using the battery materials industry as one example.
Contact CSG Talent for help bridging skills gaps and overcoming talent shortages in your industry.
Key Takeaways
- Skills gaps occur when businesses cannot access enough talent with the skills needed for current or future roles.
- Rapid technological change can create demand for specialised skills faster than the available talent pool can adapt.
- The battery materials industry provides a clear example of how rapid growth can create shortages of technical and commercial expertise.
- Skills-first hiring can help businesses access transferable talent from adjacent industries.
- Skills gaps can also be addressed through workforce training, upskilling, mentorship, and targeted development programmes.
- Regular skills gap analysis helps businesses identify critical capability shortages before they affect growth.
What Causes Skills Gaps in Evolving Industries?
One of the main causes of skills gaps is the disconnect between educational curriculums and evolving industry demands. Technologies and processes are advancing so quickly that many universities are struggling to keep their courses up to date. As a result, graduates often lack the practical skills needed to hit the ground running in evolving sectors, leaving 46% of employees feeling underqualified for their role, according to BusinessWire. This then has a ripple effect on the future of these industries, as the next generation of leaders could lack the skillsets to thrive and innovate long-term.
The battery materials industry is experiencing rapid growth, driven by demand for critical minerals and investment in battery manufacturing and future mobility. This expansion is creating demand for skilled professionals across mining, processing, materials science, engineering and manufacturing, but finding people with the right combination of technical and commercial expertise remains a challenge.
Skills gaps in battery metals are particularly prominent in roles requiring expertise in battery technology, materials science, and mining engineering, as these positions require a combination of technical expertise and commercial skills, which can be difficult to find. This is particularly true in North America, where there is a lack of talent in manufacturing cathode active materials, which are a key component in battery production.
Talha Ubaidullah, Battery Materials & Decarbonisation Specialist at CSG Talent, believes sourcing candidates from adjacent industries is one way businesses can address talent shortages in the battery materials sector:
“It’s an exciting time for the battery materials industry, but the growth has created some skills gaps. In the U.S, for example, companies are looking to hire talent from Asia, which is particularly difficult for businesses that are selling into the defense industry or have received government grants, as they are restricted on where they can source talent from. To get around this issue, businesses are looking for talent with transferable skills from industries like pharma and chemicals, especially for the construction and operation of gigafactories.”
This skills-first approach is a great way of accessing a wider talent pool, which could help your business find professionals with transferable skillsets that make them equipped to succeed.
How Can Businesses Overcome Skills Gaps?
As a business, it’s crucial to understand what you can do to overcome skills gaps challenges and continue to innovate, especially in evolving industries. Let’s take a look at some solutions that could help your business continue to grow.
1. Adopt a Skills-First Hiring Strategy
One of the best ways to overcome skills gaps is by adopting a skills first approach, which focuses on the abilities and potential of candidates rather than strictly on qualifications or experience. By switching to this hiring strategy, you can access a wider talent pool and find hidden potential in candidates with transferable skills who may not be considered otherwise.
Many of the more traditional industries and businesses are hesitant about adopting this approach, with our LinkedIn poll finding that 25% of our audience said they were only somewhat open to it, and 10% not open at all. This opens the door to your business as you can gain a competitive advantage by tapping into overlooked talent pools and positioning yourself as a forward-thinking company that attracts and develops top talent.
For a truly effective skills first hiring strategy, you should look to hire talent from other industries to combat skills gaps. Many skills are transferable across industries, such as problem-solving, project management, and technical expertise in data analysis and engineering. By broadening your search to include candidates from other sectors, you can find talent with the skills your business needs. As well as expanding your talent pool, this helps increase diversity in your business, resulting in fresh perspectives and ideas.
2. Conduct a Skills Gap Analysis
onducting a detailed skills gap analysis will help you understand the specific needs of your business to prepare for growth. Here’s a quick step-by-step guide on how to conduct a skills gap analysis:
Start by establishing your business goals and making sure they align with your talent strategy.
Conduct an audit of your current workforce’s skills using surveys, self-assessments, and performance reviews. This will give you a greater understanding of the existing skillsets within your business.
Once you have this data, compare your team’s current skillsets with the skills needed to meet your business goals to help identify specific gaps that may impact innovation.
Prioritize filling your company’s most critical skills gaps so that your training efforts produce the best possible results.
It’s also important to regularly revisit your skills gap analysis to make sure your business keeps up to date with evolving trends and industry demands.
3. Upskill and Train Your Employees
As well as attracting new talent, it’s equally important to invest in your current workforce. Research by Gartner shows that 58% of the workforce will need new skills to do their jobs successfully in the coming years. Many of your employees may have the knowledge and potential to succeed in certain roles but lack experience in using new technologies or following different processes. It’s therefore crucial to provide tailored training and development opportunities so that you can future-proof your business.
Methods of creating strong learning and development programs include:
Encouraging the use of online learning platforms and certifications
Hosting and attending industry-specific workshops and seminars
Promoting collaborations between different teams
Providing leadership and management development programs
Encouraging mentorship at all levels
Providing mentorship opportunities is perhaps the most important of all these methods, as it creates a culture of learning and personal growth. When you’re training an employee to learn a new skill, pairing them with a professional who has experience in the skill can help build their technical expertise, as well as developing the mentor’s leadership skills.
Running internal mentorship programs can also improve retention rates in your organization, as mentees at every income level are more likely to say they are satisfied in their role than those who don’t have a mentor, according to CNBC. Keeping your best talent is crucial, as the cost of recruiting a replacement, including loss of productivity while a role is vacant, is around 20% of the employees’ salary for management-level roles, according to business software leader Brian Welsh. By retaining talent and helping them develop within your business, you can build strong, reliable teams and drive long-term innovation and growth.
Partner with CSG Talent to Bridge Your Skills Gaps
Bridging skills gaps and talent shortages requires a tailored talent strategy, a strong network, and an understanding of the recruitment market. At CSG Talent, we specialize in executive search and recruitment across renewable energy, battery materials, life sciences, and many more exciting industries
If you're struggling to find niche talent or searching for candidates with transferable skills, contact our executive search specialists today.
For more information and insights on transferable skills, view our U.S industry showdown.
