Traditional Training to a Skills-Based Economy: A Personal Journey

Recently, during a check-in with new management trainees, a Gen Z team member casually remarked, “I don’t use anything I learned in college at work.” This comment wasn’t just offhand; it highlighted a significant shift in how learning needs to occur in today’s fast-paced workplace. It got me reflecting on my journey in Learning and Development.

When I began my career in training at a leading life insurance company, formal training programs were the gold standard. They comprised lengthy curriculums and certifications, focusing heavily on long-term skills that were important for workplace success. While these methods may have been necessary at the time, they are increasingly irrelevant in our current landscape. We are witnessing a shift toward a skills-based economy—one where practical skills take precedence over formal degrees.

What is a Skills-Based Economy? In a skills-based economy, specific skills are prioritized over traditional qualifications like degrees. Employers are increasingly seeking abilities that can directly translate into workplace performance. According to a report from the World Economic Forum, by 2025, 85 million jobs may be displaced by shifts in labor between humans and machines, while 97 million new roles could emerge, demanding a new set of skills.

Gen Z is feeling the brunt of this change. Many enter the workforce excited but find themselves facing challenges they weren’t prepared for. They often express their frustration by saying, “This is not my skill set.” This sentiment underscores a considerable gap between what they learned in academia and the practical skills that are essential in today’s job market.

How My Approach Has Evolved

Reflecting on my journey in Learning & Development, it’s evident how our methods have adapted to meet these changing needs:

• From Knowledge Transfer to Skill Application: Early training emphasized delivering extensive content focused on what employees might need in the future, often in lengthy sessions. Now, we have shifted toward integrating practical exercises that enable employees to apply what they learn in real-world scenarios. This hands-on approach encourages deeper understanding and immediate relevance, allowing learners to connect theory with practice.
• Bridging the College-to-Work Gap: The disconnect between academic learning and workplace demands remains significant. Many new hires feel their coursework didn’t adequately prepare them for the challenges they encounter on the job. Developing targeted training sessions that address specific skills is essential, moving away from a one-size-fits-all curriculum.
• Cultivating a Growth Mindset: Encouraging a culture where it’s okay to say, “I don’t know yet; I can learn” is vital. This helps employees, especially Gen Z, feel more comfortable exploring new skills and asking for help. It’s about creating an environment that celebrates curiosity.
• Feedback-Driven Development: Actively seeking feedback from participants about their learning experiences can guide improvements in training programs. Gen Z appreciates a voice in the process and desires a sense of ownership in their development.

Key Takeaways for the Skills-Based Economy

The skills-based economy is shaping every aspect of work. Here are a few insights I have gained about making this shift:

• Traditional Programs Have Their Place: While traditional training was crucial, we must evolve our methods to meet the fast-paced demands of today’s landscape.
• Learning Must Be Continuous and Contextual: Training must reflect the real-world challenges employees face. Immediate application of new skills amplifies their impact.
• Upskilling Should Be a Process, not an event: Skills aren’t acquired in a single session. Ongoing, flexible learning that evolves with roles is essential.

In this skills-based economy, navigating the evolving landscape is both a challenge and an opportunity. How are you building a skills-based organization? What challenges have you faced and what innovative strategies have you employed to overcome them?