Companies have modernized the way they do business to maintain agility and a competitive edge in an information-based economy. This change has created a significant gap between the skillsets companies need to function, and the actual skills employees can provide.
Formal American Education in Decline
The education system is partly to blame for this widening skills gap. According to the GSV2020 Report, nearly 40% of U.S. college graduates believe that their school did not prepare them well for employment. Universities continue to teach the basic skills needed to run a business, but companies need employees with highly specialized skills to compete in today’s business environment.
Skills such as IT systems integration, marketing to online niche industries, and expertise in cloud-based business models are in high demand. But universities are not providing these technical skills to the market. Most businesses have realized that the only way for employees to gain these skills is for the companies themselves to become educators.
Companies Filling the Need for Skills Training
Many companies have begun to provide formal employee training programs to solve the issue. According to the Forbes Corporate Learning Fact Book, corporate-based employee training grew to $70 Billion in the U.S., and $130 Billion worldwide in 2014.
When corporate training comes to mind, most people imagine traditional, face-to-face training; however, companies find this approach no longer works since modern employees often occupy remote workspaces or traveling extensively. It is nearly impossible to find the time for all employees to come to one central location for training.
Learning Management Systems (LMS) were created for the higher education market but are now utilized by top companies to reach employees efficiently – no matter their location. Such systems can assess the skills level of each employee and create an individual learning plan to teach the employee the skills they need. As LMS solutions become more specialized with integrated analytics tools, administrators strengthen their ability to measure individual employee’s skills acquisition. This data can also be used to match those employees better with critical assignments within the organization.
A New Culture of Learning
LMS solutions are not only closing the skills gap for employers; they’re creating a deep culture of learning within an organization – something many employees crave to increase engagement, productivity and reduce churn.