Outskilling
Long before most of us had uttered the word COVID-19, automation and other technological changes were threatening millions of American jobs. A survey of employers released today found that even before the current crisis, nearly three in four CEOs said that changes in the nature of work would prompt them to lay off workers in the next three to five years.
Many companies were already planning to help displaced workers regroup, retool and land a new job, according to the survey, which looked at 400 companies with at least 100 employees and was conducted by Penn Foster, an education and training provider. The vast majority (89%) of CEOs agreed that investments in “outskilling” initiatives—which provide guidance and navigation support, education and training, and connections to new employers—would benefit both their companies’ reputations with consumers and their relationships with employees.
The vast majority (89%) of CEOs agreed that investments in “outskilling” initiatives—which provide guidance and navigation support, education and training, and connections to new employers—would benefit both their companies’ reputations with consumers and their relationships with employees.
As the economy falls into recession and companies layoff or furlough workers in droves, outskilling is both more challenging and more urgent. Thoughtful investments in outskilling will not only help employers and employees weather the volatility of the coming months, but also will pay dividends for years to come. The long-term trends remaking work will continue long after COVID-19.
“With COVID, there is a large population at risk for displacement,” says Steven Johnson, who until recently led Amazon’s Career Choice program. “But while COVID has accelerated and highlighted those employees’ at-risk nature, it didn't really change it. They were always at risk. They were at risk of automation, or of other changes in their work.”
As the new survey indicates, business leaders increasingly recognize that they play an important role in smoothing transitions for workers. Doing so is good social stewardship, and it’s good business. Companies’ reputations rise and fall on how they treat their workers, and this will especially be true during the COVID-19 crisis. More broadly, research has also shown that, if not handled especially well, layoffs not only cause reputational damage, but harm job performance and increase turnover among employees who remain. Productivity and profits often suffer.
“Individuals value financial support for education and training, but they place just as much—if not more—value on the guidance and validation employers can provide,” says Eleanor Cooper, CEO of Pathstream, which provides education and training to develop digital skills. “They recognize that the skills required for work are rapidly evolving, and they look to their employers to validate what training and education is valuable. The current situation only magnifies this need for help navigating the workforce.”
The new survey found that 80% of company leaders said they valued outskilling, demonstrating the widespread appeal of the approach. But only 40% had such a program.
It’s clear that, while companies see the merits of outskilling, it hasn’t been a top priority. That leaves a substantial gap in services as we look to help millions of already or soon-to-be laid off workers find new career pathways. Services, like the Layoff Network and Silver Lining, are popping up to provide coaching, networking and referrals for newly laid-off professionals, but they primarily serve white collar workers. We need broader solutions.
Companies with outskilling programs already in place will need to ramp up those efforts quickly. And for those without such a program, third-party outskilling providers, like Outset, can provide a ready-made option for individual companies or for industry coalitions, especially those focused on the frontline workforce.
Acting now is critical, not only because at least 10 million Americans lost their jobs in the past two weeks, but also because workers so rarely find themselves with time for training. Typically, training must be sandwiched between work and family obligations, but with so much talent sitting idle—either laid off, furloughed, or working reduced hours—individuals who aren’t experiencing insurmountable challenges with family or health may actually have time to retool.
Both the reputational benefits and the programs themselves will long outlive this current crisis. In just months or years, COVID-19 may be done remaking the economy—but automation will still just be getting started.
Many businesses have already coordinated rapid responses in related areas. Collaboration between companies on hiring and firing is more prevalent than in any previous environment. Major employers such as Hilton are partnering with companies like Albertsons, Amazon, CVS, Lidl, Sunrise Senior Living and Walgreens to help find temporary jobs for tens of thousands of their displaced workers. And a coalition of CEOs working to #StopTheSpread is showing our country what stakeholder capitalism should look like in a time of crisis.
Both collaboration and financial commitment will be essential for providing outskilling services at the enormous scale needed. The good news is that those investments are not a short-term play. Both the reputational benefits and the programs themselves will long outlive this current crisis. In just months or years, COVID-19 may be done remaking the economy—but automation will still just be getting started.
