Business

HOW DIGITAL TRANSFORMATION HAS CHANGEDTHE SKILLS LANDSCAPE FOR GEN Z

Written by: Olivier Landerer, CEO Global Talent Hub, andLiz Sebag-Montefiore, Director & Co-founder 10Eighty and Global Talent Hub partner

As digital transformation reshapes industries, the workforce of the future is set to be defined by continuous innovation and technological disruption. This includes automating processes, using data analytics for strategic decision-making, and improving customer experiences through digital channels. Leveraging technologies such as AI, the Internet of Things (IoT), and blockchain, organisations can more efficiently develop new products and services and stay competitive. According to one report, a staggering 50% of organisations plan to incorporate AI into their businesses this year.

But progress rarely happens without challenges. The IPPR report, ‘Transformed by AI’, found that young people are at high risk as organisations hire fewer entry-level jobs and introduce AI technologies instead.

So, in this new normal, which skills and jobs remain relevant, and how can employers support Gen Z entering the job market?

STAYING HUMAN, STAYING RELEVANT.

AI could displace up to 8 million jobs in the UK alone. However, an area that technology can’t replace, according to World Economic Forum, is skills related to our core human qualities: we are naturally curious, caring and creative. These attributes align well with a variety of job types that could help Gen Z stay relevant in a competitive market. For example:

Human curiosity leads to:

  • Analytical thinking and innovation. Businesses rely on data for decision-making, so roles like data analysts and scientists will remain crucial for interpreting data and fostering innovation.
  • Active learning and adaptability. Training and development specialists will help employees stay updated with technological advancements, ensuring they can pivot as needed.
  • Complex problem-solving. Addressing multifaceted issues that technology alone cannot solve. Engineers, systems analysts, and project managers will integrate various technological and human elements to resolve intricate problems.
  • Technological skills. Programming, digital literacy, and knowledge of emerging technologies like AI and blockchain are indispensable. Software developers, cybersecurity experts, and IT specialists will be crucial for maintaining and securing digital infrastructures.

Human creativity leads to:

  • Interpersonal skills. Leadership and social influence are increasingly important. Roles in human resources, team management, and customer relations will rely on these skills to foster collaboration and effective communication in diverse teams.
  • Improvisation and imagination. Creative storytelling, music and artistic ability are vital for fostering emotional expression, personal development, cultural enrichment, and diversity of thought. These skills enrich both individual and societal well-being.

A caring human nature leads to:

  • Emotional intelligence. As the population ages and mental health issues become more prevalent, the demand for social care and mental health services will grow. These fields require empathy, emotional intelligence, and specialised training—skills that are not easily automated. Roles such as social workers and mental health counsellors will become more in demand, providing essential services and support to society.

With the right support and education in place, Gen Z have endless potential to create new opportunities and thrive in the workplace.

EDUCATION AND ENGAGEMENT – WHERE DO EMPLOYERS FIT IN?

According to the British Council 51% of Gen Z say that education has not prepared them for the workforce. To help overcome this gap, education leaders and employers need a strong alignment both on policy and job skills awareness.

Five ways employers can get involved

  1. Large employers should lobby governments to ensure that the school curriculum equips young people with the knowledge, technical, cultural, and creative skills demanded by the economy. This would address skills gaps and shortages, with a focus on green, social, digital, and emerging technologies.
  • Provide guidance to young people while they are still in education to facilitate a smoother transition into the workforce. Many young people work part-time while studying, building essential and transferable skills, but they may need a better understanding of career options and pathways and the skills required for future jobs.
  • Promote apprenticeships where young people gain work experience while learning. These programs are cost-effective, reduce overall training and recruitment costs, and diversify the candidate pool.  
  • Make recruitment youth-friendly by avoiding reliance on informal networks, which favour established workers. Ensure recruitment routes are accessible to young workers. Consider removing the requirement for academic qualifications from school leaver programmes, instead recruiting for skills, behaviours, and competencies.
  • Connect with education and youth services to provide access and information to young people. Help prepare them for the workplace through mock interviews, career days, mentoring schemes, or workplace tours. Such initiatives improve the job prospects of young workers who may not have access to career advice.

Addressing youth employment is a multi-stakeholder problem that requires employers to work effectively with policymakers, education, youth, and local services to ensure a coordinated approach.

Equipping young people for the labour market is a crucial business strategy for productivity and competitiveness, improving workforce diversity, access to new ideas and skills, as well as building a talent pipeline. Employers can play a crucial role in shaping a future-ready workforce, ensuring young people are well-prepared for the evolving job market.

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