Abstract:

Rapid technological developments, digitization of information, and automation of processes have transformed jobs and require new skills to fulfill these advanced roles. The inability to find qualified personnel to fill vacant positions has been reported as a growing concern [1]. The study's objective was to utilize surveys, metrics, and data from consulting companies and staffing firms to help identify causes for the growing discrepancy between the skills and competencies employers want to see in their employees and the skills that applicants and job seekers possess. Data were collected from consulting companies, staffing firms, research papers, scholarly journals, and articles to understand companies’ difficulties in searching for qualified applicants. Company surveys (N=500) and data from human resource studies were primarily used to collect information and metrics on the state of the economy, employment, and workforce skills gaps. Qualitative data from these surveys and reports helped identify present conditions, trends, cost of hiring, issues companies face, and cause-and-effect relationships between employers, employees, educational institutions, and students. Through the financial and root cause analysis, the findings presented skills gaps in 4 major categories:
1) new and rapid digital and technological developments,
2) issues with recruitment and company expectations,
3) deficiencies in the education system, and
4) issues with employee development.

Seven preventative measures were identified, which include investing in internal solutions like training programs and internships, boosting labor wages for employees to learn new skills, fixing bottlenecks in the hiring process, or outwardly engaging with colleges, universities, or other educational institutions. For each of these measures, a SWOT analysis and a side-by-side comparison were performed, and the preventative measures were sorted based on Affordability, ROI, Break-even, and risk, from the least to the most amount of financial investment and the highest amount of financial risk. Depending on a company’s budget, strategic goals, and expected outcome, a preventative measure or a combination of preventive measures can be chosen to minimize the skills gaps within the organization. The findings are pertinent to the workforce and organizational finances and exemplify the application of business theories to real-world industry issues through an academic lens, particularly within the scope of a university Capstone project. The research underscores the importance of University-Industry partnerships in addressing critical economic challenges, emphasizing the need for a collaborative approach to workforce development in the digital era. This study enhances global competitiveness and economic sustainability in an increasingly technology-driven world by bridging the skills gap through targeted strategies and innovative learning models.

Keywords:

Workforce skills gap, Organizational issues, University-industry collaboration, Recruitment.