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Skills Gaps: Overcoming Challenges in Evolving Industries
22 Jan, 20255 Minutes
The demand for specialized talent is growing significantly, particularly in rapidly evolving sectors. Industries like renewable energy, battery materials, and life sciences are developing at a fast pace, with technological advancements and sustainability goals driving innovation.
However, as these sectors continue to grow, so does the gap between the skills required and the talent available to fill these roles. According to Springboard, 38% of leaders believe that skills gaps in their business have worsened in the last year, which highlights the significance of talent shortages across a range of industries.
In this article, we will explore the skills gaps present in evolving industries and how your business can overcome them.
The Impact of Education on Skills Gaps
One of the main causes of skills gaps is the disconnect between educational curriculums and evolving industry demands. Technologies and processes are advancing so quickly that many universities are struggling to keep their courses up to date. As a result, graduates often lack the practical skills needed to hit the ground running in evolving sectors, leaving 46% of employees feeling underqualified for their role, according to BusinessWire. This then has a ripple effect on the future of these industries, as the next generation of leaders could lack the skillsets to thrive and innovate long-term.
Skills Gaps in the Renewable Energy Industry
The renewable energy sector is thriving, with the global market projected to reach over $2 trillion by 2030, according to Statista. Governments and businesses are working toward net-zero goals by adopting technologies like wind, solar, and hydroelectric power, which are reshaping the energy industry. However, this rapid growth has highlighted significant skills gaps.
For example, energy storage technology requires talent with expertise in advanced battery systems and energy efficiency, but these individuals are hard to come by. Talent is also in short supply in the regulatory compliance space, where businesses need professionals who understand the evolving frameworks that renewable energy projects must follow.
To meet these requirements, renewable energy businesses are expanding their search and increasingly valuing talent from other industries such as environmental science, electrical engineering, and data science.
Skills Gaps in the Battery Materials Industry
The battery materials industry is also experiencing rapid growth, driven by the global transition to renewable energy and the push for future mobility solutions like electric vehicles. The high demand for critical materials such as lithium, cobalt, and nickel is causing the market to thrive. However, this growth has also led to competition for talent and a need for skilled professionals capable of driving innovation and meeting industry demands.
Skills gaps in battery metals are particularly prominent in roles requiring expertise in battery technology, materials science, and mining engineering, as these positions require a combination of technical expertise and commercial skills, which can be difficult to find. This is particularly true in North America, where there is a lack of talent in manufacturing cathode active materials, which are a key component in battery production.
Elliot Lavallin, Head of Battery Materials & Processing at CSG Talent, believes sourcing candidates from other industries is also a good way of overcoming talent shortages in the battery materials industry:
“It’s an exciting time for the battery materials industry, but the growth has created some skills gaps. In the U.S, for example, companies are looking to hire talent from Asia, which is particularly difficult for businesses that are selling into the defense industry or have received government grants, as they are restricted on where they can source talent from. To get around this issue, businesses are looking for talent with transferable skills from industries like pharma and chemicals, especially for the construction and operation of gigafactories.”
This skills first approach is a great way of accessing a wider talent pool, which could help your business find professionals with transferable skillsets that make them equipped to succeed.
For more expert insights on this strategy, read our latest blog: Skills First Hiring and Transferable Skills.
Skills Gaps in the Life Sciences Industry
The life sciences industry has entered an era of technological advancements that are reshaping healthcare and research. According to Allied Market Research, the global life sciences IT market value is expected to grow at a CAGR of 11% from 2024 to 2033, reaching $62.5 billion. Despite this, there are still challenges, gaps, and opportunities in life sciences that require strategic solutions.
There are a vast range of tech-specific skills in demand in life sciences, including:
Bioinformatics
AI and machine learning
Robotics and automation
Cloud computing and data management
Software development for medical devices
Like in the building materials and renewable energy sectors, businesses in life sciences are adopting skills first hiring strategies to find talent from other industries to fill gaps, particularly professionals with engineering and tech skills.
How to Overcome Skills Gaps in Your Business
As a business, it’s crucial to understand what you can do to overcome skills gaps challenges and continue to innovate, especially in evolving industries. Let’s take a look at some solutions that could help your business continue to grow.
Adopt a Skills First Hiring Strategy
One of the best ways to overcome skills gaps is by adopting a skills first approach, which focuses on the abilities and potential of candidates rather than strictly on qualifications or experience. By switching to this hiring strategy, you can access a wider talent pool and find hidden potential in candidates who may not be considered otherwise.
Many of the more traditional industries and businesses are hesitant about adopting this approach, with our recent LinkedIn poll finding that 25% of our audience said they were only somewhat open to it, and 10% not open at all. This opens the door to your business as you can gain a competitive advantage by tapping into overlooked talent pools and positioning yourself as a forward-thinking company that attracts and develops top talent.
For a truly effective skills first hiring strategy, you should look to hire talent from other industries to combat skills gaps. Many skills are transferable across industries, such as problem-solving, project management, and technical expertise in data analysis and engineering. By increasing the perimeters of your search to include candidates from other sectors, you can find talent with skillsets that your business really needs. As well as expanding your talent pool, this helps increase diversity in your business, resulting in fresh perspectives and ideas.
Conduct a Skills Gaps Analysis
Conducting a detailed skills gaps analysis will help you understand the specific needs of your business to prepare for growth. Here’s a quick step-by-step guide on how to conduct a skills gaps analysis:
Start by establishing your business goals and making sure they align with your talent strategy.
Conduct an audit of your current workforce’s skills using surveys, self-assessments, and performance reviews. This will give you a greater understanding of the existing skillsets within your business.
Once you have this data, compare your team’s current skillsets with the skills needed to meet your business goals to help identify specific gaps that may impact innovation.
Prioritize filling your company’s most critical skills gaps so that your training efforts produce the best possible results.
It’s also important to regularly revisit your skills gaps analysis to make sure your business keeps up to date with evolving trends and industry demands.
Upskill and Train Your Employees
As well as attracting new talent, it’s equally important to invest in your current workforce. Research by Gartner shows that 58% of the workforce will need new skills to do their jobs successfully in the coming years. Many of your employees may have the knowledge and potential to succeed in certain roles but lack experience in using new technologies or following different processes. It’s therefore crucial to provide tailored training and development opportunities so that you can future-proof your business.
Methods of creating strong learning and development programs include:
Encouraging the use of online learning platforms and certifications
Hosting and attending industry-specific workshops and seminars
Promoting collaborations between different teams
Providing leadership and management development programs
Encouraging mentorship at all levels
Providing mentorship opportunities is perhaps the most important of all these methods, as it creates a culture of learning and personal growth. When you’re training an employee to learn a new skill, pairing them with a professional who has experience in the skill can help build their technical expertise, as well as developing the mentor’s leadership skills.
Running internal mentorship programs can also improve retention rates in your organization, as mentees at every income level are more likely to say they are satisfied in their role than those who don’t have a mentor, according to CNBC. Keeping your best talent is crucial, as the cost of recruiting a replacement, including loss of productivity while a role is vacant, is around 20% of the employees’ salary for management-level roles, according to business software leader Brian Welsh. By retaining talent and helping them develop within your business, you can build strong, reliable teams and drive long-term innovation and growth.
Partner with CSG Talent to Bridge Your Skills Gaps
Combatting skills gaps in all industries requires a tailored talent strategy, a strong network, and an intrinsic understanding of the recruitment market. At CSG Talent, we specialize in executive search and recruitment across renewable energy, battery materials, life sciences, and many more exciting industries.
If you're struggling to find niche talent or searching for candidates with transferable skills, contact our executive search specialists today.
For more information and insights on transferable skills, view our U.S industry showdown.
