Navigating Workforce Transformation: Changing the skills landscape

Marcus Beaver, UK&I Country Leader, Strada

28 January 2025 - Almost four in five (79%) UK employers have seen staff request digital upskilling opportunities, training on emerging technologies and a new way of working via hybrid contracts. It's clear for anyone to see that the skills you once needed to function in a workplace have changed drastically.

Employers need to be able to keep up with these changes. To stay afloat in the modern workforce landscape, they need to implement the latest technologies and know how to effectively manage the talent they have access to. Technology is constantly being talked about and is being implemented into countless industries, but how can we be sure that it's worth businesses investing in?

By combining technology with human expertise, businesses can create an employee base that is able to adapt, overcome, and excel in the face of a rapidly changing job landscape where old skill sets are quickly becoming redundant. By successfully implementing technology across the board, but also, crucially, into HR functions, businesses will be able to spot performance and skills gaps far more easily and address these issues with increased productivity.

So, how can HR teams use technology to effectively manage employee skill sets to prepare for the future?

Technology and understanding workforce needs

With over 58% of workers believing the skills they need will change significantly in the coming five years (research by the World Economic Forum), it's clear that the abilities required today may be redundant by tomorrow. Tech can help businesses stay ahead of the competition.

The businesses that fully embrace technology and implement it into the daily tasks of their employees will gain significant advantages in navigating upcoming challenges. For example, Covid-19 forced an ultimatum on businesses; accept technology and embrace it into the workplace or fall behind. And so started the age of hybrid working and countless training courses on zoom etiquette, background blurring, noise cancelling and so forth.

We've already seen that by effectively implementing technology into workforce management businesses can gain access to advanced data, but this needs to be implemented sooner rather than later to allow employees to be more efficient, make more informed decisions, and have a greater alignment between workforce skills and strategic goals. If done successfully, this can have a truly transformational impact.

Additionally, integrating the relatively new emergence of AI and machine learning into business operations can revolutionise decision-making. By taking advantage of this new technology to predict business developments companies can identify market trends, optimise supply chains and improve customer experiences. This proactive approach not only mitigates risks but also drives innovation and provides a competitive advantage.

This has been successful in countless industries. In the NHS, for example, AI is being used to:

• Provide faster and more accurate diagnosis
• Reduce errors caused by human fatigue
• Assist with or automate repetitive tasks
• Decrease costs
• Reduce mortality rates

It's clear that the role of technology can be transformational across many public and private sector organisations. By championing digital transformation initiatives, business leaders can ensure that their organisations remain agile and resilient in the face of rapid change. This strategic alignment of technology with business objectives not only boosts productivity but also positions companies to thrive in an unpredictable future.

The role of technology in making HR a strategic function

While organisations as a whole can benefit from technology, HR can elevate its status from admin function to strategic partner.

Instead of preexisting day-to-day functions, HR teams can be focusing on using current data to accurately predict business growth and requirements, while also building an agile team. In fact, according to a recent McKinsey report, organisations that actively try to revolutionise their business to be more agile improve financial performance by up to 30%.

We can see leveraging technology in HR provides numerous advantages:

• Data-Driven HR Decision-Making: Technology streamlines HR decision-making by providing accurate, real-time data. From workforce planning to talent acquisition and restructuring, technology can enable HR teams to make faster, well-informed decisions.
• Continuous Internal Improvement: Data can offer in-depth analysis of employee performance, ensuring optimal team cohesion. This analysis can prevent over-hiring and control employment costs by identifying skill redundancies and gaps. Additionally, data insights help align employees with roles that match their strengths, increasing job satisfaction and reducing turnover, ultimately driving workforce engagement and productivity.
• Better Workforce Flexibility: HR teams can leverage technology to create adaptive workforce structures that respond effectively to challenges such as illness, redundancies, or turnover. Advanced HR analytics tools can also identify talent gaps and workforce trends, enabling data-driven adjustments to staffing and skills deployment. This flexibility ensures organisations maintain productivity and stay ahead of the competition.

The workplace has changed dramatically, and HR has evolved with it. By leveraging technology, HR departments can transition from administrative roles to strategic functions, increasing overall effectiveness, and driving business growth. This shift enables more informed decision-making and fosters a more agile workforce, crucial for building resilient, high-performing teams that can adapt to ever-changing demands.

Going forward

Analysing data to simulate scenarios and automate skills management helps businesses make informed decisions, improve efficiency, and align their workforce with strategic goals. In the face of a changing workplace, the companies that can adapt and leverage technology will build resilient, agile teams that thrive amid future challenges.

The good news is, this isn't a journey you need to take alone, partnering with human capital management experts with a deep knowledge of digital tools will help make this a seamless process. This will be the key to navigating the complexities of the modern work environment and ensuring long-term business success.

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