Youth workforce needs enhanced skills to sustain job market chaos

Bridging this employability gap has become more important than ever. (Representational Image)

By Diganta Biswas 

In today’s age of business transformation, organizations are facing a plethora of challenges due to factors ranging from digitization and generative artificial intelligence (GenAI) to disruption caused by external factors such as global crisis or natural disasters. Together with the stark ‘employability gap’ among recent graduates, this exposes companies to the risk of a shrinking pool of skilled talent. According to the Periodic Labour Force Survey (PLFS) for 2022-23, only 2.37% workers fall under Skill Level 3 while 8.59% fall under Skill Level 4, as codified in the National Classification of Occupations. The 'India's Graduate Skill Index: 2023' report by Mercer & Mettl finds that only 45% of graduates in India are ready for industry demands.

At a time when companies may be looking for professionals capable of navigating the unforeseen changes and challenges, bridging this gap has become more important than ever, for it can significantly impact the employer-employee dynamics. Graduates settling with the ways of corporate life must acquire new-age skills to gain a competitive edge and meet the fast-changing industry requirements, ensuring that they stand out in a crowded job market.

Here are four essential skills that can help make the cut.

AI Knowledge Relevant to the Industry

Artificial Intelligence (AI) is revolutionizing industries across the globe. For new joinees, a fundamental understanding of AI and its applications within their specific industry is becoming increasingly vital. The types of AI intervention and implications can vary from one industry sector to another, but an awareness of how AI can streamline operations, enhance decision-making and create competitive advantages is something employers are looking for. For example, AI has impacted the knowledge industry significantly. A joint study by Microsoft and LinkedIn finds that 92% of knowledge workers in India across diverse sectors are actively integrating AI tools into their daily workflows.

Cyber Security Awareness

The growing threat of online intrusion and data theft has made cyber security awareness non-negotiable. According to an industry report, more than 80% of Indian companies experienced cyber-attacks in 2023.  The fact is reiterated by Aon’s ‘Global Risk Management Survey’ for 2023-24 that puts cyber-attacks and data breach among the top concerns for companies in India. A new employee who is aware of basic safety principles such as recognizing phishing attempts and setting strong passwords can help companies build strong defence against online threats. While some companies have started investing in cyber security training for their employees, awareness about various kinds of threats certainly makes a candidate stand out in the crowd.

Effective Communication in a Professional Setting

Effective communication is the cornerstone of any successful organization. In a professional setting, this skill extends beyond merely conveying information – it involves active listening, clear articulation, and the ability to tailor messages to different audiences depending on the situations. Good communication – both verbal and written – can bridge gaps between departments, foster collaboration, and drive projects to successful completion. Anyone who aspires to lead must be adept in communicating their ideas clearly and actively listen to others' perspectives to understand and address any critical situation, both in-person and digitally on platforms like Slack, Zoom, and Microsoft Teams.

Understanding Financial Principles

A solid grasp of financial principles is invaluable, regardless of one’s role within the company. Professionals aspiring for more consequential roles can make a difference if they understand basic financial concepts such as budgeting, forecasting, and financial reporting, which enables them to make informed decisions, manage resources effectively, and contribute to the company’s overall financial health. Whether it is evaluating the cost-benefit of a new project or understanding the financial implications of a strategic decision, a basic understanding of the financial principles can help an employee make informed decisions from a profitability standpoint.

As companies stare at an increasingly disruptive future, the skills they prioritize in new joiners will significantly impact their ability to adapt and thrive. Expertise in subject matter only will not be enough as the challenges diversify – the candidates would have to acquire some additional skills that can help the companies handle the complexities of modern business environments by building a resilient and versatile workforce capable of driving sustained success amidst uncertainty.

The author is founding Partner, Peak IX Consulting. Views are personal and do not represent the stand of this publication.