The clash of the skills and silver tsunamis

The workforce landscape is bracing for a huge shift in employee demographics. In 2021, employers saw high turnover rates during the “turnover tsunami” or great resignation, and now there’s talk of what’s coming next.

Named the “skills tsunami” and the “silver tsunami,” these waves of change are set to reshape the talent pool, disrupt modern workplace culture, and demand a proactive response from organizations across all industries.?

In this edition of TalentTech Weekly, we delve into the challenges and unique opportunities of these shifts.

Let's dive in!

The skills tsunami: Adapting to evolving capabilities

As technology continues its expansion, the skills required to thrive in the modern workplace are undergoing a rapid transformation. McKinsey's Anu Madgavkar warns of a "skills tsunami" – a massive shift in the capabilities workers will need to remain relevant and competitive. This tsunami is driven by automation, digitalization, and the growing advancements in artificial intelligence (AI). The World Economic Forum predicts that 50% of the workforce will need reskilling by 2025.

The impact of this skills revolution is already evident. According to the Bureau of Labor Statistics (BLS) there are 76 workers for every 100 open jobs in the U.S. This mismatch between workforce supply and demand highlights the urgency for companies to prioritize the tech talent shortage.

Organizations have two solutions: hiring new talent or training existing employees. Hiring new IT professionals can introduce new skills, but it's risky and time-consuming.? Upskilling and reskilling existing staff is a feasible alternative that incentivizes employees and enables backfilling with less senior staff where supply is better and finding a good fit is easier.

Strategies your team can use to navigate the skills tsunami:

• Invest in continuous learning and development programs.
• Foster a culture of adaptability and a growth mindset.
• Leverage AI and digital tools for personalized training.
• Collaborate with educational institutions and industry partners.

A great first step is adopting a skills management platform to serve as a bridge for your employees by connecting their current competencies to the evolving skill sets. Upskilling platforms house programs like online courses, interactive workshops, webinars, and structured mentorship programs. For businesses, these platforms are not just tools, but strategic assets.

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The silver tsunami: 4 million baby boomers leave the workforce every year

Simultaneous with the skills tsunami, the workforce is also bracing for a "silver tsunami" – the impending retirement of the baby boomers, the generation born between 1946 and 1964. This demographic shift threatens a significant knowledge gap, as seasoned professionals take decades of invaluable experience and institutional culture with them.

According to McKinsey, 4 million baby boomers leave the workforce every year, with 56% of retiring boomers occupying leadership positions. Legal Jobs suggests that roughly 10,000 baby boomers retire every single day. Furthermore, roughly 10,000 baby boomers are turning 65 every day, and all baby boomers will have passed that age by 2030.?

How do baby boomers feel about retirement? A survey by The Harris Poll found that 63% of boomer workers believe their company is well prepared to handle their retirement. However, only 44% say their company has an adequate successor in place for when they retire, and 30% feel their companies may lose key client relationships if they retire.

Strategies your team can use to mitigate the silver tsunami:

• Implement mentorship and knowledge transfer programs.
• Explore flexible work arrangements and phased retirement options.
• Encourage intergenerational collaboration and knowledge-sharing.
• Leverage technology and AI for knowledge capture and preservation.

Recommended reading: Streamlining your talent strategy with skills ontologies

The twin tsunami impact

While the skills tsunami and silver tsunami present challenges, they also offer opportunities for organizations to redefine their talent management strategies. Addressing these twin challenges in silos is no longer an option, they must be addressed simultaneously.

By fostering intergenerational knowledge-sharing, organizations can facilitate the transfer of expertise from the outgoing workforce to the incoming talent pool. This not only preserves invaluable institutional knowledge but also promotes idea-sharing.

The strategic deployment of AI and digital tools can serve as a powerful catalyst during this shift, enabling personalized training, knowledge capture, and preservation. Intelligent systems can assist in identifying skill gaps, curating tailored learning paths, and archiving institutional knowledge.

Strategies your team can use for synergistic success:

• Promote a culture of continuous learning and knowledge-sharing.
• Leverage AI and digital tools for personalized training and knowledge capture.
• Foster intergenerational collaboration and cross-pollination of ideas.
• Implement agile workforce planning and talent acquisition strategies.

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Written by: Alexandra Paasch