The Fourth Industrial Revolution has seen tremendous technological advancement over the past decade. While this progress has created many new opportunities, it has also led to a widening skills gap as needed job skills rapidly evolve. With growing automation replacing many routine jobs, there is an urgent need for workers to equip themselves with digital skills required for the emerging roles of the future. However, traditional education and training methods have struggled to keep pace.
Today we will explore how organizations can help close the skills gap through establishing "Digital Academies" - employer-led upskilling initiatives designed to cultivate in-demand technical and soft skills through experiential learning.
The Growing Digital Skills Gap
There is widespread consensus from both research and industry reports on the growing digital skills gap. A study from the World Economic Forum found that by 2022, more than half of all employees will require significant reskilling and upskilling to work effectively with emerging technologies like artificial intelligence, cloud computing, robots and more (World Economic Forum, 2020). Similarly, McKinsey Global Institute research predicts that 375 million workers worldwide may need to change occupational categories and learn new skills by 2030 due to technology disruption (Manyika et al., 2017).
This skills gap poses major challenges for both individuals and organizations. For workers, lacking digital proficiency can mean becoming less employable or vulnerable to technology-induced job losses (OECD, 2019). For employers, the skills shortage constrains business growth, productivity and innovation (Mercer, 2021). Traditional skills building approaches are proving inadequate, as the pace of change far outstrips the slow speed of formal education systems (Wainwright et al., 2021). This reality demands new models that can equip workers with future-ready competencies at scale and speed.
Organizational Learning Theories
While swift digital upskilling is crucial, employers should not overlook the importance of soft skills and opportunities for applied learning. Foundational organization learning theories provide guidance here. Experiential learning theorist David Kolb emphasized that knowledge is best gained through transformative experiences, reflection, and application (Kolb, 1984). Communities of practice research by Etienne Wenger similarly highlighted the power of collaboration and participation in authentic tasks to cultivate competence (Wenger, 1998).
More recent studies have found mentorship, hands-on projects and peer support to be highly effective for developing digital and professional acumen (Carliner et al., 2020; Pronin et al., 2021). Workplace learning professionals also stress the value of contextualized, blended programs that combine technical instruction with opportunities to directly apply skills on the job (Constance, 2022; Lohman, 2022). Overall, an organizational learning approach focused on experiential activities, social skills and direct application of knowledge appears most conducive for catalyzing digital transformation.
Models for Digital Academies
Bolstered by this research foundation, there is a compelling case for organizations to establish "Digital Academies" aimed at cultivating in-demand technical and soft skills among their workforce. Several best practice Digital Academy structures can be proposed.
Model 1: Digital Literacy Bootcamps
To help close basic digital divides, some companies run focused "bootcamps" teaching foundational literacy. For example, AT&T launched "Operation: Digital Ready" offering free eight-week online courses on topics like basic computing, online safety and digital citizenship (AT&T, 2021). Bootcamps are low investment and can build awareness, but may not arm learners with job-specific abilities.
Model 2: Tech Skill Accelerators
For cultivating in-depth technical talents, larger firms operate multi-month "accelerator" programs. Microsoft's "Microsoft Technology Centre" offers 16-week .NET training to internal employees, covering topics like AI, cloud and security with hands-on labs and capstone projects (Microsoft, 2022). Google similarly runs "Career Certificate" programs teaching skills like UX design, data analytics and project management. Such intensive options foster advanced capabilities but come at higher costs.
Model 3: Blended On-the-Job Models
A blended approach combining flexible online modules with contextual team projects may offer optimal learning. Bank of America tailored its "Digital Learning Academy" allowing associates to complete self-paced courses on working hours, supplemented by monthly "quest days" to practice skills on live work. Lessons are scaffolded based on jobs roles, and master classes led by subject matter experts further support learners (Bank of America, 2021). Such an embedded model blends affordability with applied, social experiences.
Model 4: "Skilling Hubs"
For fostering continuous growth at scale, larger firms operate physical or virtual "Skilling Hubs." Intel's global "Skills Initiative" program comprises regional innovation centers where employees participate in multidisciplinary challenges, bootcamps and mentorship on emerging technologies like blockchain and AI. Outcomes include new patent applications and a major female talent pipeline initiative (Intel, 2021). As technology hubs, such models cultivate organizational innovation through dynamic communities of practice.
Digital Academy Case Studies
To better understand digital upskilling approaches in action, two case studies are profiled below:
IBM's New Collar Initiative
Seeking to expand beyond four-year degrees, IBM launched the "New Collar Initiative" to train the workforce in cognitive, cloud, data, security, and other in-demand tech skills through accelerated learning models. Programs are 12-26 weeks long, and delivered through collaborative, hands-on practicums done online or onsite at one of four dedicated "Job Skills" centers in the U.S. Topics align closely with actual roles. Over 25,000 learners have completed certified programs, and 90% are hired within six months, often into roles critical to IBM's digital transformation (IBM, 2022).
Singapore's SkillsFuture Initiative
To prepare workers for Industry 4.0, the SkillsFuture program aims to provide every Singaporean with the opportunity to develop skills through lifelong learning. A key element is 200 "SkillsFuture Centers" co-located with educational institutions and industry where working adults can access self-paced online or facilitated classroom courses on data analytics, AI, cybersecurity and more. Courses are stackable and tied to job roles. Early evaluation finds over 80% of adult learners report applying new skills on the job, with 40% receiving promotions or salary increases (SkillsFuture, 2022).
Conclusion
As technology disrupts the nature of work at an unprecedented pace, organizations must actively cultivate new streams of digital talent through employer-led initiatives like Digital Academies. While traditional education systems remain too slow, well-designed skilling models embracing organizational learning theories hold promise. The case for digital upskilling is compelling from both individual employability and business productivity standpoints. Through embracing approaches blending online and social learning, hands-on application, and tailored curricula, companies can help catalyze workforce transformation and close looming skills gaps. With global competitiveness and inclusive growth at stake, this presents an opportunity for business leadership in cultivating the technologies and talents of tomorrow.
References
AT&T. (2021, June 18). AT&T helping millions develop critical digital skills through expanded collaboration with nonprofit partners. AT&T Communications. https://about.att.com/story/2021/att_digital_divide.html
Bank of America. (2021, February 18). Bank of America launches digital learning academy to support associate development. Business Wire. https://www.businesswire.com/news/home/20210218005246/en/Bank-of-America-Launches-Digital-Learning-Academy-to-Support-Associate-Development
Carliner, S., Breiner, J. M., & Kallushi, S. (2020). Bridging the soft skills gap: Exploring technology-enabled solutions for soft skills development. Information and Learning Sciences, 121(5/6), 311-324. https://doi.org/10.1108/ILS-02-2020-0035
Constance, H. (2022, May 9). Building skills for the digital workplace. TD: Talent Development. https://www.td.org/magazines/td-magazine/building-skills-for-the-digital-workplace
IBM. (2022). New collar jobs. https://www.ibm.com/impact/initiatives/new-collar
Intel. (2021, August 17). Intel Skills Initiative drives digital upskilling, economic opportunity. Intel Newsroom. https://www.intel.com/content/www/us/en/newsroom/news/intel-skilling-initiative-update.html
Kolb, D. A. (1984). Experiential learning: Experience as the source of learning and development. Prentice-Hall.
Lohman, M. C. (2022). Workplace learning and development practices during the COVID-19 pandemic: What strategies are firms adopting? Human Resource Management Journal, 32(1), 113-131. https://doi.org/10.1111/1748-8583.12411
Manyika, J., Lund, S., Chui, M., Bughin, J., Woetzel, J., Batra, P., Ko, R., & Sanghvi, S. (2017). Jobs lost, jobs gained: Workforce transitions in a time of automation. McKinsey Global Institute. https://www.mckinsey.com/featured-insights/future-of-work/jobs-lost-jobs-gained-what-the-future-of-work-will-mean-for-jobs-skills-and-wages
Mercer. (2021, November). Bridging the skills gap. https://www.mercer.com/our-thinking/career/bridging-the-skills-gap.html
Microsoft. (2022). Microsoft Technology Center. https://www.microsoft.com/en-us/mtc
OECD. (2019). OECD skills outlook 2019: Thriving in a digital world. OECD Publishing. https://doi.org/10.1787/df80bc12-en
Pronin, V., Mulyatiningsih, T., Lubis, Y., Wardani, N. K., & Pribadi, I. K. (2021). Digital skills for Industry 4.0: A practitioner's perspective on skill requirements and training models in Indonesia. Bulletin of the Atomic Scientists, 77(4), 195-199. https://doi.org/10.1080/00963402.2021.1929185
SkillsFuture. (2022). SkillsFuture centres. https://www.skillsfuture.sg/skills-framework/ssg/overview/skillsfuture-centres
Wainwright, M., Moss, S., Oyebode, J. R., & Coleman, A. (2021). Improving the UK workforce's digital skills: A systematic review and narrative synthesis of key considerations and recommendations. Frontiers in Education, 6, Article 715002. https://doi.org/10.3389/feduc.2021.715002
Wenger, E. (1998). Communities of practice: Learning, meaning, and identity. Cambridge University Press.
World Economic Forum. (2020, October 20). Jobs of tomorrow: Mapping opportunity in the new economy. World Economic Forum. https://www.weforum.org/reports/jobs-of-tomorrow-mapping-opportunity-in-the-new-economy
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
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